Reasons smart investors are choosing MICs


Reasons smart investors are choosing MICs

As market uncertainty continues and returns from investing in stocks and bonds become more unpredictable, investors are increasingly looking to alternative investments that generate attractive returns in their portfolios. Mortgage investment firms (MICs) are popular investment options because of their many benefits.

Let’s take a look at the reasons smart investors are choosing MICs, and why MICs remain a popular alternative to traditional fixed-income investments for smart investors.

Tax-advantaged investment

MIC can be held in registered accounts such as RRSP, RRIF, and TFSA. Although specific tax benefits vary by account type, MICs eligible for registered accounts offer investors a variety of tax planning opportunities, including growing tax benefits.

Taxation of investment income on some registered accounts is deferred until the time of retirement payments, when the average income of the investor may be lower than the period of employment, and is consequently taxed at a lower income bracket.

Compounded growth

MICs usually offer a DRIP or a dividend reinvestment program. Instead of receiving distributions in cash, MIC stockholders may elect to automatically reinvest their dividends in additional MIC shares.

This allows investors to benefit from compound interest and grow their investments faster. By becoming part of the automation of investment decisions, investors enjoy the long-term benefits of having more money to continue investing and working for them.

Return potential

Mortgage investment firms allow investors to invest in pools of mortgages from which they receive regular income shares in the form of dividends. MIC has historically produced competitive returns compared to other fixed-income investments, often in the 6% to 11% range.

It is difficult to compare to traditional fixed-income investments such as bonds and GICs. Delivering Consistent Returns MICs may have control as they strive to maintain stable portfolios that deliver consistent and compelling returns over the long term.

Risk mitigation

MICs can provide effective risk mitigation if they are well-diversified and professionally managed by a team of experts who carefully value each borrower and asset. The experts who are available at Canguard. Allocating an investor’s capital to a diverse mortgage pool reduces investment risk by spreading across multiple mortgage investments.


As MIC is a pooled investment, investors have access to a diverse portfolio of mortgages. Each mortgage has its characteristics such as loan-to-value ratio, term, borrower profile, property type, and location.

This gives investors access to a wide range of properties with a single investment. Additionally, the MIC has a low correlation with the stock market, making it especially popular during times of economic uncertainty.

MIC is an attractive alternative fixed-income investment. It offers a combination of advantages that are difficult to find in traditional fixed-income markets. As with any investment, careful due diligence is required to ensure that the fund you select is managed carefully, consistently, and in line with your specific investment objectives and risk profile.

Join Canguard mortgage investment corporation and gain access to one of Canada’s best-growing alternative investments. Invest with confidence in carefully selected and professionally managed mortgages.

Reasons smart investors are choosing MICs FAQ


MICs function similarly to mutual funds and Exchange Traded Funds (ETFs), so diversification gives investors more protection. Also, the interest rate charged to borrowers allows investors to earn returns faster.


The Mortgage Investment Corporation (MIC) is a legal entity that issues mortgages in Canada. If you own equity in MIC, you can invest your money in a safe and diverse pool or mortgage servicing company. MIC shares are investments subject to RESP, RRIF, TFSA, or RDSP under Canadian income tax law.

Although MICs are generally licensed and registered by the state, the administration of mortgage funds falls under the jurisdiction of realtors and mortgage brokers.


a MIC lends no more than 80% of the collateral’s value, which makes it financially worthwhile. The higher the LTV, the higher the risk of the investment.
There are several reasons to invest in a mortgage investment corporation, such as tax-advantaged investment, compounded growth, return potential, risk mitigation, and diversification.

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