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• What is a mortgage?

In the most simple of terms, a mortgage is a loan used to finance the purchase of a home. Under a mortgage, the buyer uses the home as collateral for the loan.

• What is a mortgage investment?

A mortgage investment includes a private investor or group of investors funding a real estate loan instead of an institution such as a bank or life insurance company.  Like a bank or life insurance company, the investor group receives a mortgage registered against the real estate from the borrower as security for their investment.

• What is a Mortgage Investment Corporation (MIC)?

A corporation whose sole purpose is to invest in Canadian Mortgages, cash and cash equivalency.

• Why invest in mortgages?

A mortgage is a fixed income vehicle that provides a steady income for the long term with relatively low risk to the capital invested.  Mortgages are secured by the title to specific properties. In other words, the borrower has pledged his or her property to support their promise to repay the money they have borrowed.  In addition to that security, when you now pool the investors and in turn invest those funds in many mortgages, the resulting diversification further mitigates the risks to the investor.