Do You Qualify as an Accredited Investor?
For years, a MIC has been typically viewed as a sound financial opportunity, a chance to enjoy regular, healthy dividends while investing in a pool of mortgages.
Not everyone is eligible to work with a MIC, and those who are, will still face certain regulations.
To Qualify for this type of Investment you need to Identify as an Accredited Investor
Understanding your opportunity to invest with a MIC is directly tied to your ability to be accredited as per the rules defined by National Instrument 45-106. It’s a matter of due diligence and making sure you fit the criteria, which differs per province.
The concept is simple: an accredited investor is deemed capable of taking on the financial risk of the investment. Like most loans and mortgage products, the person must prove that they are associated with minimal risk.
Regulators have Stipulations About who can buy Shares in a MIC
An accredited investor must meet at least one part of the outlined criteria which covers personal income, spousal income (if applicable) and assets. Regulators require a potential investor’s income to be at least $200,000 in each of the previous two years including the current year, or when combined with a spouse, the total income must meet $300,000 over the previous two years.
In regards to assets, one must own more than one million in cash and securities after debt is subtracted. Another stipulation requires that net assets are worth more than five million.
Regulators want to weed out potential risks. It’s always recommended that you review the regulations early in the process and with a keen eye.
Once Approved, there’s Still One More Stipulation
With the Mortgage Company of Canada, accredited investors must invest at a minimum value of $25,000. Shares can be purchased either through a registered plan (RRSP, RRIF, TFSA or RESP) or directly.
The Mortgage Company of Canada Inc. specializes in lending to specific sectors of the mortgage market, historically those under serviced by private and institutional lenders in terms of loan type, amount, and geographic location. Demand in these sectors has continued to be strong through the recent credit crisis and resulting economic downturn.
Mortgage Company of Canada has always maintained its focus on a number of critical underwriting criteria that have mitigated the portfolio’s overall risk. As an alternative investing strategy, this has allowed the company to generate positive returns no matter what the broader market is doing.
To find out how you can diversify your investment portfolio with Canadian real estate mortgages, contact Mortgage Company of Canada Inc. at 905-886-5352 or by e-mail at firstname.lastname@example.org