What is a Mortgage Investment Corporation (MIC)?
A Mortgage Investment Corporation is a provincially registered and licensed mortgage investment and lending company, that enables investing in a secured pool of mortgages. A Mortgage Investment Corporation provides its investors with interest payments that can be paid out monthly, quarterly or annually.
Why Nest Capital?
- We have more than 13 years of real estate investing experience, including being landlords and investing in residential mortgages.
- Nest Capital has been able to provide higher returns than traditional investment options. Since inception, Nest has provided 10% annual returns for our investors, paid monthly.
- Nest Capital principals are invested in the company and have skin in the game. We invest alongside you in a pool of carefully vetted mortgages.
What is the process of investing with Nest Capital?
- We will connect you to our registered exempt market dealer.
- A Suitability Assessment will be done with an exempt market dealer.
- Nest will guide you on how to move the funds to invest.
- Investor statements are sent out on the 15th of each month
Through which accounts can I invest?
- Prospective investors can invest individually or through their business.
- We accept cash investments and registered plans investments such as TFSA, RRSP, RRIF, LIRA, LIF, and more.
What is the minimum investment?
The minimum investment for the fund is $1,000 for qualified investors.
Why invest in mortgages?
- As many people know, Canada has had tremendous growth in real estate, and in particular Ontario. As of 2017, Ontario has a $132-billion mortgage brokerage market and private lenders account for around eight percent, or $10.6 billion, of the total dollar value of all mortgages by brokerages.
- Due to increased government regulations on lending guidelines for traditional lenders like banks and trust companies, this has created a need for private funds.
What is the difference between Private Lending and investing in a Mortgage Investment Corporation?
Check out the link to our article here to learn more about the differences between investing in an individual mortgage versus investing in a pool of mortgages!
How does Nest evaluate new loans?
- When we receive a file from a mortgage broker or agent, we evaluate the paperwork and appraisal. (We do not accept any files with paperwork deficiencies).
- Once we have examined the paperwork, it is reviewed by our underwriting committee to determine suitability, funding requirements and questions for follow-up.
- The file is then sent to our lawyer to obtain a full legal evaluation.
- Once approved, Nest Capital MIC confirms and provides funding via our lawyer’s trust account.
- The law firm completes registration and sends electronic and original copies of documentation.
How does Nest get access to investing opportunities?
- Nest Capital MIC and its manager, Nest Capital Mortgage Administrator Inc., uses a network of relationships with trusted and experienced mortgage brokers to find and fund opportunities.
- The trusted expertise also includes underwriters, lawyers, auditors, and property appraisers.
How does Nest find mortgages to fund?
- Nest originates all of its mortgage applications through licensed mortgage agents and brokers across Ontario
- Please note that we are open to developing new relationships with mortgage brokers and agents
- New mortgage applications may be sent via Filogix and Lendesk
How will income be received for tax purposes?
- Although we are not tax accountants and we recommend that you contact your tax professional, we have answered this simply below
- Returns are treated as interest income. Investors looking to invest via a cash account will receive a T5 statement of investment income.
- Many investors also invest in a tax-free manner, such as TFSAs. You can also invest via RRSPs, RRIFs and other methods.
Are you regulated?
- Yes. Nest Capital is regulated through the following:
- The Income Tax Act section 130.1
- The Financial Services Regulatory Authority of Ontario (FSRA)
- Mortgage Brokerages, Lenders and Administrators Act, 2006, S.O. 2006, c. 29
- MORTGAGE ADMINISTRATORS: STANDARDS OF PRACTICE
- The Nest Capital Mortgage Administrator license #12901 is governed by the Financial Services Regulatory Authority of Ontario (FSRA)