“MIC” stands for Mortgage Investment Corporation. A MIC is a professionally managed pool of mortgages secured by Canadian real estate. In Armada’s case, this means real estate in major cities across British Columbia, Alberta, and Ontario.
The interest earned from lending on mortgages is then paid out to shareholders in the form of dividends. As per the Canadian Income Tax Act, a MIC distributes all its net income as dividends. With Armada, investors can choose to have dividends paid out via direct deposit or have them compound and accrue monthly. At year end, investors have the option to have all retained earnings paid out, or they can have the earnings converted into shares.
The portfolio is managed by a professional mortgage administrator, which follows approved mortgage underwriting guidelines to determine loan eligibility. The MIC is guided by a board of directors which meets quarterly with management. All MICs will have different guidelines as to which properties they are willing to lend on.
Having a diverse portfolio allows MICs to mitigate risk in investments.
To learn more about investing in our MIC, contact us at advisor@armadawealth.ca or call 604-467-6449 to speak with our friendly dealer representative.