Mortgage Investment Corporations, or MICs, were created to make mortgage investing easy. The MIC allows individuals to pool their funds, similar to a mutual fund, and invest those funds in a diversified portfolio of residential and commercial mortgage loans. A management company performs the day to day administration of the fund. In this case, Antrim Investments Ltd. (Antrim); having over 30 years of mortgage lending experience. Each year the MIC pays 100% of net income out to its investors in the form of dividends. These dividends can be taken in cash or re-invested in new shares.
Why Mortgage Investment Corporations were created
Investing in private mortgages has long been the favorite investment vehicle of those seeking similar returns to the stock market without taking on the same amount of risk. However, participating in the private mortgage market on your own can be complicated. Mortgage Investing requires strong bookkeeping and underwriting skills not possessed by all investors. Accurate amortization schedules on mortgage loans must be maintained necessitating the use of computer software. Moreover, even if the investor is capable of properly administering the loan, their rate of return is reduced if they cannot reinvest mortgage payments and payouts quickly and effi ciently. Investing in residential mortgages typically requires large amounts of capital. Residential mortgage applications are generally over $100,000; creating a barrier to entry for investors without large amounts of available capital.
The Benefits of MIC investing:
- Real Estate Security:
Mortgages purchased by the MIC are secured by Canadian Real Estate.
- RRSP / RRIF Eligible:
Hold your Antrim MIC in a self-directed RRSP or RRIF.
- Superior Returns:
Earn 6% – 7% per year compared with 2% on GICs
- Professional Management:
Antrim has been in the Mortgage Lending business for over 30 years.
Investors own a diversifi ed portfolio of mortgage loans.
- Regular Income:
Investors can choose to take their dividends in cash or re-invest in more shares.