MIC Guidance
What is a MIC and how does the investment process work with Solidity? We provide an alternative to investing in the real estate market while reducing the risk involved in investing in individual mortgages.
MIC Investing: What to Expect
The Canadian government regulates mortgage lending limits and insurance criteria through the Canada Mortgage and Housing Corporation (CMHC). These guidelines apply to banks and major lending institutions across Canada. Continued restrictions and lending guideline tightening have left many stable and credit-worthy individuals without viable home financing options. The ongoing tightening of mortgage regulation has created an attractive and secure opportunity for our Mortgage Investment Corporation.
With strict lending policies in mind, the Solidity Group offers financing to qualified borrowers involved in home purchases or mortgage refinancing. Capital increases by selling preferred shares to accredited investors, and the funds are pooled and lent to qualified mortgage borrowers. The net profits (interest income) generated from the mortgages are then distributed back to the shareholders.
The Solidity Group Mortgage Investment Corporation also offers a dividend re-investment program (DRIP) which automatically reinvests your dividends to achieve a higher return. Investments in The Solidity Group Mortgage Investment Corporation are available to Accredited Investors or corporations who invest $150,000.
What is a Mortgage Investment Corporation?
A MIC is a tax-exempt corporation under The Income Tax Act that invests in Canadian residential and commercial mortgages.
Investors reap the benefits by pooling their money by purchasing dividend-paying preferred shares in the MIC.
A MIC is not taxed on its own income but disburses all net income to its investors. Dividends are treated as interest income when received by investors. This makes investments in MICs particularly attractive for RRSPs, RRIFs, and TFSAs!
