On September 17, 2025, the Bank of Canada announced a 25-basis-point policy rate cut, lowering the overnight rate to 2.5%. This decision comes amid growing signs of economic deceleration—marked by a contraction in GDP, declining exports, and rising unemployment. As the broader financial environment shifts, investors are reevaluating their income strategies in response to lower…
Introduction: Private Lending in a Debt-Laden Economy Canada is entering the final quarter of 2025 with its highest-ever levels of household debt. As families and businesses feel the pressure of mortgage renewals, credit card obligations, and tightened access to traditional financing, the investment landscape is adjusting rapidly. Within this shifting environment, Mortgage Investment Corporations (MICs)…
The Hidden Cost of Cash in a 2.75% Rate Economy As of September 2025, the Bank of Canada continues to hold its policy rate at 2.75%, signaling a measured approach to economic recovery. For Canadian investors, this rate environment brings clarity—but also a challenge. While inflation has eased compared to previous years, the opportunity cost…
Shifting Tides: Institutional Capital Eyes the MIC Sector Mortgage Investment Corporations (MICs), traditionally the domain of high-net-worth individuals and retail investors seeking steady returns outside conventional markets, are undergoing a strategic pivot in 2025. With Canada’s policy interest rate still holding at 2.75% and banks remaining cautious in their lending, large institutional players — including…
In British Columbia’s shifting financial landscape, Mortgage Investment Corporations (MICs) are becoming more than just alternative lenders—they’re turning into an intergenerational financial bridge. With aging baby boomers looking for stable passive income and younger Canadians struggling to secure financing in a high-cost housing market, MICs have emerged as a mutually beneficial solution that meets both…
With the Bank of Canada’s key interest rate now at 2.75% as of July 2025, Canadian investors are revisiting how they allocate capital for short-term returns. Traditional fixed-income vehicles like GICs and high-interest savings accounts—long considered safe bets—are facing stiff competition from short-term Mortgage Investment Corporations (MICs), which are offering superior yields and flexibility without…
As of July 2025, the Bank of Canada has held its overnight rate at 2.75%, signaling a pause in monetary tightening but offering little relief to conservative investors chasing returns. In this yield-conscious environment, the question isn’t just about safety—it’s about performance. For Canadians comparing Guaranteed Investment Certificates (GICs), high-interest savings accounts (HISAs), and alternative…
In a significant policy shift, the Bank of Canada reduced its benchmark interest rate to 2.75%, setting a new tone for mid-2025. After grappling with historically high rates to curb inflation, Canada is now pivoting towards easing—offering new hope to borrowers and challenges for traditional fixed-income investors. But amid these adjustments, Mortgage Investment Corporations (MICs)…
After two years of turbulence across interest rates, inflation, and housing policy, many Canadian investors spent early 2024 in “wait-and-see” mode. Concerns about recession, property devaluation, and default risks led even seasoned investors to hold cash or shift into defensive assets. But in 2025, that narrative is shifting. With the Bank of Canada’s rate pause,…
The ripple effect of variable-rate mortgage renewals in British Columbia is being felt across the entire lending ecosystem. As the Bank of Canada maintains its rate cut trajectory into mid-2025, many borrowers who locked into variable-rate mortgages during the 2020–2022 low-rate window are now reaching their renewal periods—only to find their affordability strained and their…