Realty Investments Corporation offers their investors the opportunity to participate in quality mortgages through two mortgage investment products:  Syndicated Mortgages and Mortgage Investment Corporations (MICs).  Regardless of your real estate or investment acumen, there is a mortgage option available to suit almost any level of expertise or preferred level of involvement.

Syndicated Mortgages are where a group of “accredited investors”, as defined in Section 1.1 of National Instrument 45-106 of the Income Tax Act, pool their money to lend to one specific borrower and are funding one project at a time.

Mortgage Investment Corporations or “MICs” are companies governed by the tax regulations of Section 130.1 of the Income Tax Act of Canada, created for “eligible investors”.  This is defined in Section 5.2 (c) of National Instrument 45-106 of the Income Tax Act for investing in “pools” of mortgages with “pools” of investors.  For those who don’t have the expertise or don’t want to commit the time and energy, the MIC allows investors to spread their risk over a number of mortgages without a lot of risk while enjoying better than average returns created by experienced mortgage professionals.

Within these pools, you are able to invest both existing and new funds using cash or registered funds that may presently be in your RRSP, RRIF, LIRA or TFSA portfolios.  The Federal Tax Act allows the MIC to pay out all of its net yearly profit as dividends without accruing tax within the corporation to the preferred shareholders according to their proportional interest.  The end result being higher returns to the investor.

Similar to a mutual fund, a MIC provides a convenient way to diversify a portfolio of investments; in this case mortgages instead of stocks or bonds.  Unlike most mutual funds, your money is secured by real estate which is not generally influenced by the volatility of the stock market and provides superior returns.