Are you looking for an investment option that offers regular income and feels more secure than stocks?

Then you might want to know about Mortgage Investment Corporations—usually called MICs. These are private investment firms that lend money for mortgages and share the interest income with investors like you. The idea is simple: MICs lend money to borrowers and pass the income on to shareholders.

What is a Mortgage Investment Corporation?

Let’s break it down without using big finance terms. A mortgage investment corporation collects money from a bunch of investors. Then it gives that money to people who need home loans or small commercial loans but might not get it easily from regular banks. In return, the MIC earns interest from these loans. That income is shared with the people who invested in the MIC.

Also, MICs in Canada are governed under the Income Tax Act, which gives them a nice tax structure. That means more money can be passed on to investors.

Why Do People Choose to Invest in MICs?

MICs are not new, but more people are noticing them now. Here’s why:

1. Steady Monthly Income

MICs are known to pay out income every month. For retired folks or people who want regular returns, this is a huge plus. You don’t have to wait for years to see a return like you would with some other investments.

2. Strong Real Estate Backing

Most MIC loans are backed by real estate. So, if something goes wrong with a loan, the MIC still holds the property as security. It’s not risk-free, but this gives a good layer of protection.

3. Simple and Direct

You don’t have to manage properties or deal with tenants. The MIC does all the work—you just invest and get your income.

4. Great for RRSPs and TFSAs

In Canada, you can put MIC investments inside your RRSP or TFSA. That means your returns can grow tax-free or tax-deferred, depending on the account you use. It’s a smart way to build your savings without giving a big part of it to taxes.

5. Low Entry Barrier

You don’t need lakhs or crores to get started. Many MICs let you invest with a few thousand dollars. So, it works even if you’re not a big-time investor.

Who Manages the MIC?

This is one part that gives people peace of mind. MICs are usually managed by professionals who know real estate and lending. They carefully pick which mortgages to approve. They make sure the borrower can repay, and they always hold real estate as security. As you know, this helps lower the risk for everyone involved.

Also, MICs usually focus on loans that banks don’t offer. That includes short-term mortgages, bridge financing, or self-employed borrowers who don’t have regular income papers. But don’t worry—the MIC doesn’t give out loans without checking. Their team always studies the case first.

What Kind of Returns Can You Expect?

Returns depend on the MIC and market conditions. But most MICs aim to offer 7–10% annually. That’s higher than many savings accounts or fixed deposits.

Of course, it’s important to read the documents and check the performance history of the MIC. Don’t just go by the numbers they show on a brochure. Ask questions if needed.

Is Liquidity a Problem?

Unlike the stock market, MICs don’t let you take out your money anytime. Most of them have rules about how long you need to stay invested. But many offer quarterly or yearly redemption options. That means you can pull out your money at certain times if needed. It’s not as flexible as stocks, but not too tight either.

If you’re someone who doesn’t need instant access to your funds and can wait a bit, this works well.

What Should You Check Before Investing?

Here’s some simple advice you can follow:

1. Look at the MIC’s track record

See how they’ve done in the last 5–10 years. A consistent return record matters.

2. Understand their loan rules

Are they lending to risky borrowers? Are the loans backed by real property? These things matter.

3. Check management experience

Are the people running the MIC experienced in real estate lending? Do they follow clear rules?

4. Read the offering documents

Take time to read the documents they provide. If something isn’t clear, ask. A good MIC will answer your questions honestly.

Final Thoughts

MICs offer a simple way to invest in real estate-backed loans without buying any property yourself. They give regular income, work well inside RRSPs and TFSAs, and are managed by professionals.

If you like the idea of monthly returns and want to invest in something backed by real assets, then a MIC might be worth checking out. As you know, every investor’s goal is to get good returns with low stress—and MICs are built to do just that.