Mortgage Investment Corporations

We qualify as a MIC and are restricted from any activity that would result in us failing to qualify as a MIC. In order to qualify as a MIC, we must satisfy the requirements in subsection 130.1(6) of the Income Tax Act (ITA).

Among the requirements are:

  • We can only invest or manage funds, and cannot manage or develop real property.
  • We cannot own debts secured on real property situated outside Canada, debts owing by non-residents unless such debts were secured on real property situated in Canada, shares of the capital stock of corporations not resident in Canada, or real property situated outside of Canada or any leasehold interest in such property.
  • No shareholder (together with related persons, as defined in the ITA) may at any time own, directly or indirectly, more than 25% of our common shares.
  • The cost for tax purposes of cash on hand, debts secured on specified residential properties, and funds on deposit with a Canada Deposit Insurance Fund or Régie de l'assurance-dépôts du Québec-insured institution or credit union must constitute at least 50% of the cost of all of our property.
  • The cost for tax purposes of any interests in real property (including leaseholds but excluding real or immovable property acquired by foreclosure after default by the mortgagor) may not exceed 25% of the cost of all of our property.
  • There are certain restrictions as to our maximum debt-to-equity ratio.

As a MIC, earnings that are distributed as dividends to shareholders are not subject to corporate income tax, and are treated as interest for Canadian income tax purposes.

We are managed by Canadian Mortgage Capital Corporation (the “manager” or “CMCC”), which is our exclusive manager and arranges and services our mortgage loans and otherwise directs our affairs and manages our business. CMCC’s website is here.

We can only invest or manage funds and cannot manage or develop real property