Looking to grow your wealth in Canadian real estate without becoming a landlord? A Mortgage Investment Corporations (MICs) might be the opportunity you’ve been searching for.
At Niche Mortgages, we help clients not only borrow, but also invest wisely. This post will walk you through the basics of MICs, who they’re for, and why more Canadians are turning to this unique investment tool.
What Is a Mortgage Investment Corporations (MICs)?
A Mortgage Investment Corporation is a Canadian investment vehicle that pools money from investors to fund private mortgages. MICs lend mostly to borrowers who may not qualify for traditional bank financing, like self-employed individuals, newcomers, or those with unique income situations.
As an investor, you earn returns from the interest paid on those mortgages, without having to manage properties yourself.
- Regulated under Section 130.1 of the Canadian Income Tax Act
- Must have 50% or more of assets in residential mortgages
- Distributes 100% of net income to investors annually
- Pays returns in the form of dividends
How Do MICs Work?
- You invest in a MIC through cash, RRSPs, TFSAs, or other registered accounts.
- The MIC lends your pooled funds to borrowers needing alternative mortgage solutions.
- You receive monthly or quarterly dividends based on interest collected.
Returns can range from 5% to 10%+ annually, depending on the MIC and its portfolio.
Benefits of Investing in a MIC
MICs are growing in popularity among Canadian investors and for good reason:
- Passive income without managing tenants or properties
- Higher yield than GICs or traditional savings accounts
- RRSP & TFSA eligible for tax-sheltered growth
- Diversified exposure to the Canadian real estate market
What Are the Risks?
Like any investment, MICs carry risk. These include:
- Loan defaults if borrowers cannot repay
- Real estate market fluctuations affecting property values
- Liquidity issues, depending on how often the MIC allows redemptions
That’s why it’s important to invest with a licensed mortgage broker who can assess reputable MICs.
Who Can Invest in a MIC?
Almost anyone! MICs are open to:
- Individual investors
- Corporations
- Trusts
- Registered accounts like RRSPs, TFSAs, RESPs, LIRAs
You don’t need millions to start. Some MICs accept investments as low as $5,000.
How Niche Mortgages Can Help
At Niche Mortgages, we connect investors with trusted MICs across Canada. Whether you’re new to real estate investing or a seasoned pro looking for stable returns, we’ll guide you through:
- Evaluating different MICs
- Understanding risk levels
- Maximizing returns with registered funds
- Ongoing support and reporting
Start Investing the Smarter Way
A Mortgage Investment Corporations offers a great way to participate in the real estate market without the hassle of buying property. If you’re looking to diversify your investments or learn more about mortgage lending as a strategy, our team at Niche Mortgages is here to help. Contact us today.
About the Author

Jonathan Yien
Jonathan Yien is a seasoned mortgage broker at DLC Clear Trust Mortgages with a rich background in financial advising from his time at TD Canada Trust. He is dedicated to helping clients achieve their financial and homeownership goals.