Understanding Some of the Risks: What Investors Should Know Before Investing in a MIC

Like all investments, Mortgage Investment Corporations carry risks.

The key is to understand them—and how they are managed.

The main risk is borrower default: if a borrower can’t repay, the MIC may need to enforce its mortgage rights. However, since mortgages are secured by real estate, the property can often be sold to recover funds.

Liquidity is another factor. Unlike stocks that can be sold instantly, MIC investments usually require notice before redemption. Investors should be prepared for a medium-term commitment.

Economic conditions also play a role. Rising interest rates or declining property values can affect performance.

The good news: MICs mitigate risks through diversification (many mortgages instead of one) and conservative lending practices.

If you are interested in investing, we will connect you with a registered exempt market dealer who can walk you through the investment process. Past performance is not intended to provide an indication of future performance.

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