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A Mortgage Investment Corporation (MIC) is a pooled investment vehicle, defined under the federal Income Tax Act, that raises capital from investors and lends it out as mortgages — frequently private, higher-rate second mortgages — passing the income back to shareholders.
A MIC is a corporate structure that lets a pool of investors fund mortgages collectively instead of a single individual writing the loan. The corporation distributes nearly all of its net income to shareholders, who in turn earn a return tied to the interest the underlying mortgages generate.
MICs are one of the most common sources of private mortgage capital, often funding second mortgages that banks and B lenders won't. Because MICs lend to riskier files, they typically charge higher rates than A or B lenders to compensate investors for that added risk.
A specific tax structure: MICs are a corporate structure recognized under the federal Income Tax Act that lets a pool of investors fund mortgages collectively.
A major source of private lending: MICs are one of the most common sources of private mortgage capital, often funding second mortgages that banks and B lenders won't.
Higher yield, higher risk: MICs typically lend at higher rates than A or B lenders to compensate investors for the added risk and shorter, more flexible terms.
Broker-sourced deals: mortgage brokers and agents commonly arrange MIC financing for clients who need fast funding or don't fit conventional lending criteria.
Definitions reflect Canadian federal and provincial rules as of the “Updated” date above. Not advice for any specific file.
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