A MIC is a Mortgage Investment Corporation

The corporate structure of a Mortgage Investment Corporation is important. Goldberg Capital MIC’s (GCAPMIC) structure is a tax-efficient flow-through vehicle that qualifies for Registered Plans such as the RRSP, TFSA, RESP, RRIF, etc.

Mortgage Investment Corporations are designed primarily for residential mortgage lending in Canada. The private mortgage market is a growing multi-billion dollar industry involving a high percentage of mortgages issued in Canada.

Mortgage Investment Corporations such as GCAPMIC provide mortgages to Canadians who prefer private mortgage financing to bank financing. Many individuals and companies prefer private mortgage financing from a Mortgage Investment Corporation such as GCAPMIC that offers the specialized service required by borrowers in the private mortgage market.

History has proven that although prices may have fluctuated from time to time, over the long term real estate has appreciated in value. The security for a mortgage is real estate property. A quality mortgage portfolio, composed exclusively of CANADIAN mortgages, is GCAPMIC’s preferred investment because of the enduring value of real estate. Mortgages provide regular income, tangible security and a return to the investor that is superior to savings deposits, GICs and bonds.

Mortgage Investment Corporations are uniquely Canadian, defined in Section 130.1 of the Income Tax Act. They are tax-efficient flow-through investments designed to allow people to invest in the Canadian private mortgage market. A MIC such as Goldberg Capital MIC allows individuals, companies, foundations, societies, unions, strata corporations, trusts and Registered Plans to invest in this lucrative safe market.

The principal characteristics of a MIC, according to Section 130.1 of the Income Tax Act, are as follows:

• A MIC must have at least 20 shareholders, and more than 40 investors not deemed "Accredited Investors".
• A MIC is widely held, a shareholder may not hold more than 25% of the MIC's total capital.
• A MIC must invest at least 50% of its capital in residential mortgages and/or CDIC insured instruments.
• A MIC may invest up to 25% of its available capital directly in real estate property for income purposes but is restricted from developing land or engaging in construction.
• A MIC is a flow-through investment vehicle and distributes all of its net income to its investors.
• All MIC investments must be in Canada.
• A MIC is a tax efficient corporation.
• Dividends received by MIC shareholders that have invested in cash (outside RRSP) are taxed as interest in the shareholders hand.
• MIC Investments are eligible for all registered pension plans in Canada, such as RRSP's and RRIF's.