Why Mortgage Investment?
For any investor or existing RRSP/RRIF portfolio, mortgage investments are a great alternative to traditional fixed income options such as bonds or GIC’s. JayCap mortgage investments are usually short-term and provide returns that are historically higher than the rates offered by bonds or GIC’s. All investments are secured against real property and pay quarterly income, typically from a mortgage pool, known as a Mortgage Investment Corporation (MIC).
What is a Mortgage Investment Corporation (MIC)?
Private mortgages are funded by individual investors and/or by a group of investors, rather than a bank or trust company. Investors "pool" their money, by purchasing shares in a company called a Mortgage Investment Corporation (MIC), specifically organized for investors to invest in one or more mortgages. Investors earn income generated by the interest that is paid from the borrowers subject to a deduction for administrative fees and expenses. The profits are then distributed to investors. Because a MIC is a corporation designated for special tax consideration in accordance with Canada Revenue Agency guidelines, all net income earned within the MIC is required to be distributed to investors to maintain its designation as a MIC which provides those investors a unique and attractive investment opportunity.
Syndicated Mortgage Investments
A mortgage syndication is where a group of investors pool their money to lend to one specific borrower. Unlike a mortgage pool or a Mortgage Investment Corporation (MIC) where a number of different mortgages may be held, syndicated mortgages fund one project at a time. Like a mortgage pool or a MIC, all administration is handled by JayCap Financial Ltd.