Why You Should Invest in a MIC?
Mortgage Investment Corporations are the fastest-growing segment in the
Canadian mortgage industry due to their potential for competitive yields, security of investments, diversified portfolios, tax advantages, and liquidity. As an alternative private lending company, Prosperity Capital specializes in delivering attractive mortgage investment solutions that meet the needs of today’s investors.
A MIC is government regulated and structured as a flow-through investment
vehicle, requiring 100% of the net income to be distributed back to its shareholders. Under the Canada Income Tax Act, MIC investments can be held within a registered portfolio such as an RRSP, RESP, LIF, RRIF, LIRA, RDSP, IPP (individual pension plan), DPSP or TFSA. We can also offer tax reduction strategies such as setting up family trusts. Allowing investors to take advantage of the favourable returns a MIC offers with additional tax benefits.
By investing in a MIC, investors can have high yielding, consistent returns that are an alternative to fixed-income investments and not as vulnerable to the natural fluctuations in the real estate and stock markets. They also provide an opportunity for smaller investors to reap the benefits of the real estate and mortgage markets with an entry level contribution amount as little as $5000.00.
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Why Invest with Prosperity Capital MIC?
High Returns
With targeted returns of over 9%, we are among some of the highest returns in the industry. We pay monthly dividends and offer a Dividend Re-Investment Program (DRIP) to allow investors to maximize their returns even further.
Secure Investments
All of our investments are secured by quality,marketable Ontario real estate, typically owner-occupied. This focus on quality assets along with a conservative loan-to-value ratio approach across our portfolio of mortgages ensures we are prioritizing the security of our investments.
Tax Advantages
Our investments are registered account eligible, including RRSPs and TFSAs. Allowing investors to not only maximize returns, but to also do so in the most tax efficient ways possible.
Competitive Edge
Prosperity Capital is well positioned to outperform other MIC’s due to several factors. One of them being a direct partnership with an industry leading mortgage brokerage, Burke Financial. Burke Financial consistently does over $250,000,000 in mortgage volume per year. This partnership provides a high volume of mortgage opportunities for Prosperity Capital. While most MICs struggle to put capital out on a consistent basis, our partnership gives Prosperity Capital the ability to consistently invest in only the most secure, high yielding opportunities available. By being able to consistently put capital to work, we are able to maximize profits, and in turn, dividends to investors.
Our management team has extensive experience and a deep understanding of the administrative and legal mechanisms of private lending. This knowledge allows Prosperity Capital’s management team to optimize the performance of investments through strategic mortgage placement and investment structure.
All of this in combination with an absolute priority on the security of investments through an extensive due diligence process and diversification, makes Prosperity Capital an extremely attractive investment opportunity for investors who are looking for both security and high returns.
Our Investment Approach
The key to our ongoing success is an investment approach that focuses on three key pillars
Security and Capital Preservation
Consistent Returns and Cash Flow
Reduced Risk Through Diversification
What are the risks associated with a MIC
All investments come with some risk and many think with the housing market in a current downturn, that mortgage investments may have additional risks. Our fund managers are experienced and know how to mitigate this risk and turn it into our advantage by ensuring there is always sufficient cushion to return capital. We only invest in the Ontario real estate market which has shown continued resilience for decades.
In the 1990s, when the Canadian real estate market crashed, the default rate for residential mortgages never climbed higher than 0.66%,” Compare this to the average default rate of North American corporate bonds—which sits at 1.01% between 1982 and 2010. Prosperity Capital always ensures that our investments are secure despite any defaults that may occur.
An additional benefit to MIC’s are the security provided to investors with Government regulated annual audits of financial statements to ensure accountability of finances and safety against fraud, including financial reporting to shareholders every month. For additional information on how MIC’S are regulated, investors can visit www.osc.ca.
