Mortgage Adjudication and Selection Process


Mortgage Adjudication and Selection Process

The Mortgage Investment Corporation, commonly known as MIC, is an investment vehicle designed specifically for the origination of mortgages. Hundreds of MICs are in operation in Canada today, but not all are created equal. Before starting, investors must review MIC’s mortgage adjudication and selection process, risk mitigation, and due diligence terms. This should underpin whether MIC is a worthwhile investment in terms of governance, capital conservation, and competitive returns.

With traditional banks tightening their mortgage lending rules, many Canadians turn to private lenders to obtain a mortgage. Personal mortgages fill a significant gap in the Canadian credit market and represent an untapped investment opportunity.

Different MIC Funds

Canguard offers these funds that offer varying levels of exposure to the Canadian mortgage market.

  • MIC High-Yield Opportunity

    Primarily invests in second mortgages with up to 85% LTV and targets a net return of 10% to 11% per annum for a higher risk profile.

  • MIC Prime Mortgage

    It applies a more conservative allocation strategy, investing primarily in the first mortgage, limiting the loan-to-value ratio to 65%, and targeting a net annual return of 6% to 6.5%.

  • MIC Balanced Portfolio

    By investing in both the first and second mortgages, we target a higher annualized rate of return, and by raising the maximum loan-to-value ratio to 75%, we target a net annual rate of return of 8% to 9%.

How Are Mortgages Selected for MIC Funds

Home loans approved and processed by our credit, underwriting, and fulfillment team are carefully evaluated to determine the appropriate allocation of funds. To assess whether a mortgage belongs to a prime fund, a balanced fund, or a high-yield fund, the fund’s credit committee evaluates two main variables.

  • Overall parameters related to each fund’s broader mortgage portfolio
  • The mortgage

How Does Mortgage Applications is Assessed?

The process of getting a successful mortgage loan can be broken down into three steps.

  • Step1: Discovery Call

    Before you get a loan, we advise you on your financial situation, potential loan amounts, and hurdles so you can succeed when the time comes. This step helps clarify the situation and prepares you to move forward with a plan of action and confidence.

  • Step2: Pre-Approval

    We review your mortgage application, review your credit report, request and verify supporting documents, and identify the best lender for your situation. Our goal is to wait with potential lenders in mind before making a final decision or committing to a purchase. During this phase, we need to verify the information disclosed in the discovery call.

  • Step3: Approval

    We will submit your completed mortgage application along with supporting documents and subject property details to the lender that best fits your situation and work with you to ensure that your financing requirements are met. After final approval from the lender, a mortgage agreement is signed with an attorney and funds are transferred.


Can Mortgages Be Reallocated?

Yes. Investments in mortgages may be transferred from one fund to another during the repayment period, during the extension of the loan, or if the borrower’s circumstances change significantly.

Mortgages are reallocated and funds are rebalanced to reweight portfolios to maintain desired asset allocation and risk levels.

A good and clear understanding mortgage adjudication and selection process will help you move forward and make decisions with confidence. We at Canguard mortgage investment corporation will ensure that. We believe that mortgages issued by Canadian Mortgages Inc. are suitable for borrowers while meeting the needs of investors.

Mortgage Adjudication and Selection Process FAQs


Making an initial evaluation call to your trusted mortgage broker to examine the situation and determine the best action is the first step. The second stage is pre-approval. Here, formal applications with supporting documents are submitted and reviewed. In the last stage, the approval, the loan is requested and the details of the mortgage contract will be finalized.


yes. An investment in a mortgage may be transferred from one fund to another during the life of the loan, during loan renewals, or in the event of a material change in the borrower’s circumstances.

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