Borrowing
A mortgage investment company (MIC) is an investment and loan firm specifically designed for mortgages. Investing in a MIC, allows investors to place their money into a company which specializes in managing a diversified and secured pool of mortgages. MIC shares are qualified under the Income Tax Act of Canada for RDSPs, RRSPs, RRIFs, TFSAs, or RESPs. The Income Tax Act of Canada requires 100% of the net income of the MIC be distributed to shareholders. The benefits of investing in a MIC include: Real Estate Security, Superior Returns, Regular Income, and Diversification.
What Type Of Borrower Utilizes Funds From Lendvest Capital
Self- employed individuals structure their tax planning in a way to minimize taxes payable. As a result, majority of bank lenders shy away from lending to these clients. At Lendvest, we make our lending decisions on the entire client portfolio. We work with self employed clients who have tax planning strategies in place.
Lendvest works to support property developers. With the recent increase in mortgage rates, developers are finding it difficult to qualify for land only lending. Lendvest Capital assists clients by providing financing development support for ongoing projects. Our goal is to continue to support developers in creating a future housing supply across the country.
Our firm has strategic partnerships with lawyers. As such, we strive to provide quick evaluations and responses. In case of necessity, we fund within a 24 to 48 hour time frame. We communicate with clients in a timely manner, as a result clients are able to meet their borrowing deadlines.
FAQ
Most frequent questions and answers
- Mortgage Investment Corporations should have at least 20 shareholders. No shareholder can own more than 25% of the total outstanding shares.
- All MIC investments should be in Canada.
- 50% or more of the MIC investment assets should be in residential mortgage loans.
- Annual financial statements of all mortgage investment corporations must be audited.
- A MIC may invest up to 25% of its assets directly in real estate. However, they are not allowed to develop land or engage in construction.
- The Income Tax Act of Canada requires the distribution of 100% of a MICs annual net income (Income less expenses) and therefore MICs pay no corporate tax
- MICs are a flow-through vehicle for tax purposes.
Preferred Shares may be redeemed by an investor subject to the provisions of the Business Corporation Act (British Columbia). The investor must provides the Mic with written notice of the amount of redemption. The notice can be hand delivered to the office of the MIC or sent by registered mail.
Please refer to the subscription agreement for further information.
- Non-Registered personal and/or corporate account
- Individual RRSP account
- Spousal RRSP account
- TFSA account
- RESP account
Minimum initial investment is $100,000 CDN. Subsequent investments are $25,000.
Your investment is primarily used to help secure 1st and 2nd residential mortgages in major metropolitan areas of British Columbia. Each mortgage investment is secured by a registered mortgage on title of the subject property.
Payouts are calculated each quarter. Within 30 days to a quarters end, investors will be contacted with payout informatin. Investors have the choice to collect their dividends or reinvest with Lendvest.
- Investing in an MIC allows one to grow their income and capital with confidence. Your assests are used to secure mortgages.
- Investors are able to communicate directly with professional mortage brokers to accesss information and knowledge regarding mortgage lending. Lendvest Capital managers have extensive investing experience. They vet all situations to make strategic investment decisions that help diversify and strengthen your mortgage investment portfolio.
- Our goal is to work with you and diversify your investmests through helping others secure mortgages. We provide low risk investment opportunities that help you maximize your returns.
