One of the most common—and most important—questions investors ask before entering Mortgage Investment Corporations (MICs) is: “What happens to my investment if a borrower stops paying?” This is the right question to ask. In real estate lending, risk does not disappear—it is structured, priced, and enforced. Unlike stocks or speculative investments where losses are often…
When Canadians think about real estate investing, the spotlight usually falls on rental properties, REITs, or development projects. But behind the scenes, institutional investors, corporate funds, and ultra-high-net-worth individuals rely heavily on a different and far more discreet strategy: Mortgage Investment Corporations (MICs). These investors are not chasing appreciation. They are not flipping homes. They…
For decades, Canadians have been taught that rental property is the best way to generate monthly income from real estate. Buy a property, find tenants, collect rent—repeat. But the realities of modern rental ownership look very different today. Vacancy risks, rising maintenance costs, insurance hikes, regulatory restrictions, and tenant disputes have turned “passive income” into…
Canada’s housing market is navigating one of its most complex affordability environments in decades. After an extended period of aggressive interest-rate increases, borrowing costs remain structurally higher than what many buyers, homeowners, and investors had become accustomed to over the last decade. While the pace of rate hikes has slowed, the impact on housing affordability,…
A Subtle Shift Reshaping Canada’s Credit Landscape Canada’s mortgage-lending environment has entered a new phase.Following the Bank of Canada’s October 2025 rate cut to 2.25 %, both credit and property markets are showing renewed activity. Debt issuance has risen by roughly 10 %, liquidity has improved, and competition among lenders has intensified. Yet with this…
A New Phase for Income-Focused Investors For investors in Mortgage Investment Corporations (MICs), the Bank of Canada’s October 29, 2025 rate cut to 2.25 % represents more than a routine policy adjustment — it’s the signal that the next yield cycle has begun. After months of trade-driven slowdown, weak business investment, and a 7.1 percent…
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…