Archive for November, 2009
5 Things You Should Ask Before Investing in a MIC
There are a lot of questions you should ask before making any investment. Here’s what we recommend you ask before putting your money into a MIC.
- Are you speaking to the person who will be making the investment or a salesperson?
- Can you call up any time to ask about decisions that have been made?
- What is the history of performance on this MIC?
- Does the MIC offer complete disclosure of its mortgage investment details?
- How does the MIC diversify its mortgage investments to protect investors?
- Is there a provision for losses and liquidity?
Not all MICs are the same – A quality MIC investment will provide full disclosure of mortgage investments.
What is a MIC? – Why You Should Know
Mortgage Investment Corporations (MICs) are designed specifically for mortgage lending in Canada. MICs lend to qualified borrowers in a ‘niche’ mortgage market who may be finding traditional mortgage lending is not getting them the results they need. A MIC mortgage portfolio can include everything from small second mortgages on residential property to commercial and development mortgages on new projects.
To many experienced investors it’s a no-brainer to include MICs in their investment portfolio. MICs don’t have the volatility of stock markets and they offer returns that are significantly higher than those from money market products.
Owning shares in a MIC allows investors to participate in a diversified and secured pool of mortgages. The income is either paid out on a regular basis or can be reinvested for growth.
A MIC is the investment that everyone should have in their portfolio because it’s secure and will make you a lot of money. Pretty simple.
Find out more about MICs here.
