Blog, Mortgage Investment Corporations (MICs)

What is a Mortgage Investment Corporation (MIC)


What is a Mortgage Investment Corporation (MIC)?

A Mortgage Investment Corporation (MIC) is a Canadian investment vehicle that pools together money from multiple investors. It uses those funds to provide mortgages to borrowers. These mortgages can be for various purposes, including residential, commercial, and industrial properties.

In a MIC, investors receive regular payments in the form of interest and principal on their investment, similar to how a bond works. The payments are generated from the mortgage payments made by the borrowers.

Investing in a MIC can provide several benefits for investors. For example, they may receive a higher investment return than other fixed-income securities, such as government bonds. Also, MICs often have a lower risk profile than stocks and other investments, as real estate assets back them.

Types of Mortgages in a MIC

A MIC may hold a variety of different types of mortgages, including first mortgages, second mortgages, and construction mortgages.

First mortgages are typically the primary loan a borrower takes to purchase a property. They are secured by the property and have a higher priority if the borrower defaults on the loan.

Second mortgages are loans that are taken out in addition to a first mortgage, often to fund home improvements or other expenses. These mortgages have a lower priority in the event of default, as they are subordinate to the first mortgage.

Construction mortgages are loans used to fund a new property’s construction. They may be provided to individuals building a home or to developers building multiple properties.

Types of Mortgages in a Canguard MIC

There are several key features of a MIC that distinguish it from other investment options:

  1. Investment in mortgages: MICs invest in a diverse portfolio of mortgages, including residential, commercial, and industrial mortgages. This allows investors to diversify their portfolios and spread risk across various mortgage types.
  2. High-income potential: Mortgage investments can be a lucrative source of income, with MICs often offering investors the opportunity to earn higher returns than they would from other types of investments.
  3. Professional management: MICs are managed by professional investment managers responsible for selecting the mortgages in which the MIC invests. This means that investors do not have extensive knowledge of the mortgage market to participate.
  4. Limited liability: MICs are structured as limited liability companies, meaning that investors are only liable for the amount of their investment and are not responsible for any debts or obligations of the MIC.
  5. Regulation: MICs are regulated by Canadian Securities Administrators and must meet certain requirements to operate. This provides investors with added protection and ensures that the MIC is operating in a transparent and accountable manner.

How MICs Work

A MIC is managed by a team of professionals responsible for identifying potential borrowers, underwriting loans, and managing the overall portfolio. They will typically have strict lending criteria in place to ensure that only creditworthy borrowers are approved for loans.

Investors in a MIC can choose to invest in a single mortgage or in a diversified portfolio of mortgages. The specific terms of each investment, including the interest rate and length of the investment, will vary depending on the individual mortgage and the MIC itself.

Overall, a Mortgage Investment Corporation can be an attractive investment option for individuals looking to earn income from the mortgage market without the hassle of becoming a mortgage lender themselves. By pooling together funds from multiple investors and investing in a diverse portfolio of mortgages, MICs offer investors the opportunity to earn high returns while enjoying the benefits of professional management and limited liability.

Mortgage Investment Corporation (MIC) Service Provided by Canguard

Canguard is a Canadian financial services company that offers a wide range of investment products, including Mortgage Investment Corporations (MICs). Our team of experienced professionals is dedicated to providing investors with high-quality investment opportunities and exceptional customer service.

Mortgage Investment Corporation (MIC) Service Provided by Canguard

Suppose you are interested in learning more about investing in a MIC. In that case, we encourage you to visit the Canguard website to learn more about our services. Our team is available to answer any questions you may have and help you make informed investment decisions. So, after finishing reading this article, we encourage you to go to another page of the Canguard website and read similar articles such as “Canguard Mortgage Investment Solutions” and “Real Estate Investment in Vancouver.”


A Mortgage Investment Corporation (MIC) is a type of investment vehicle that pools together funds from individual investors and uses those funds to invest in a diversified portfolio of mortgage loans. These loans can be used to finance the purchase of residential or commercial properties or to refinance existing mortgages.

A MIC generates returns for investors through the interest and principal payments made by borrowers on the mortgage loans in its portfolio. As the borrower makes payments on their loan, the MIC distributes a portion of those payments to its investors as dividends.

As with any investment, risks are associated with investing in a MIC. These risks may include the possibility of default by borrowers on the mortgage loans in the MIC’s portfolio, changes in interest rates that could affect the value of the mortgage loans, and general market conditions that could affect the value of the real estate. It is important for investors to carefully consider these risks before deciding to invest in a MIC.

The government regulates MICs in Canada, where they are commonly known as “Mortgage Investment Entities” (MIEs). In Canada, MIEs are regulated by the Canadian Securities Administrators (CSA). They must comply with certain rules and regulations to operate. Investors need to ensure that the MIC they are considering investing in is properly regulated and operating in compliance with the law.

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This website is provided for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. No securities regulatory authority has assessed the merits of these securities or the information contained in this website. Potential Investors should conduct their own due diligence before investing. All statements in this website, other than statements of historical fact, that address events or developments that Canguard expects to occur are forward looking statement. These forward-looking statements generally can be identified by the use of words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe” or “continue”, or the negative thereof, or similar variations. Please see the Offering Memorandum for a complete description of the risks associated with investing in Canguard Mortgage Investment Corporation. Purchase of Canguard Shares may be made through Kite Financial Solutions Ltd or a Dealer/Advisor.

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