What Is aMIC?

A Mortgage Investment Corporation (MIC) is a Canadian investment vehicle that pools capital from investors to provide secured real estate loans. 
MICs earn income through interest paid by borrowers and distribute that income to investors as dividends.

How a MIC Works

1

Investors Contribute Capital

Individuals and institutions purchase shares in the MIC, pooling funds to be used for mortgage financing.

2

The MIC Lends on Real Property

Funds are deployed as secured mortgage loans to qualified borrowers — typically short-term and asset-backed.

3

Interest Income Flows to Investors

Borrowers make monthly interest payments to the MIC, which distributes dividends to investors.

Benefits of a MIC
  • Stable Returns Backed by Real Assets — Investors earn predictable income from secured mortgage portfolios.
  • Diversification and Capital Protection — Exposure to multiple loans and properties reduces individual risk.
  • Regulated Structure — MICs operate under FSRA oversight and CRA reporting requirements.
  • Tax Efficiency — Income distributed to shareholders is treated as interest income, qualifying for RRSP and TFSA accounts.
  • Professional Management — Experienced teams select and monitor loans to ensure quality and compliance.
Regulation and Tax Framework
Under the Income Tax Act (Canada), Section 130.1, a MIC must distribute 100% of its net income to shareholders to qualify for special tax treatment.

MICs are generally exempt from corporate income tax and instead act as flow-through entities for their investors.

Provincial financial regulators (e.g. FSRA in Ontario) oversee the operation of licensed mortgage administrators and brokers who manage these investments.