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Instead of a mutual fund or ETF that holds a portfolio of stocks, a MIC holds a portfolio of carefully-issued mortgages. The borrowers make their mortgage payments to the MIC, which in turn distributes the income to its investors. Unlike stocks, the MIC’s mortgages are secured by the underlying real estate, and are not affected by the stock market’s daily ups-and-downs. It’s a lot of upside, with limited downside.
With their fast approval process, flexible lending criteria and mortgage terms, MICs can charge higher interest rates. Investor returns may range from 6% to 10%, compared to less than 2% for a one-year Guaranteed Investment Certificate (GIC).
As a fixed-income asset with no correlation to traditional asset classes (like stock markets), MICs can help offset the volatility of equities, while providing consistent income in today’s persistently low-yield environment. By investing alongside others, you will own shares in a much larger and more diversified real estate portfolio than you could hold on your own, with the benefit of a professional management team.
Your investment in Morex Capital can be held in your Registered Retirement Savings Plan (RRSP), your Registered Retirement Income Fund (RRIF), or your Tax-Free Saving Account (TFSA), providing the opportunity for tax-sheltered growth.
MICs are exempt from tax under section 130.1 of the income tax act. 100% of the net earnings are distributed to investors as regular, quarterly distributions, and management expenses are kept low.
To get a clear picture of the risks associated with MICs, and what Morex Capital does to mitigate and manage those risks, please download our educational brochure on Mortgage Investing
Our Mission is to provide investors with capital preservation while delivering superior returns from securitized investments and a steady stream of dividend income.
Morex Capital operates under FSRA license #12213. All securities are offered through Morex Asset Management Corp, an exempt market dealer.
