What types of mortgages does CMI MIC invest in?
CMI MIC’s risk philosophy is to pursue above-average yield for our investors while focusing on a low-cost structure and capital preservation. This means: restricting our investments to lower risk mortgages and a diversified portfolio with a loan-to-value ratio targeted at 75%; no single loan to exceed more than 10% of the book value; appraisal of fair market value for each mortgage invested in; and title insurance required for all mortgages. All potential borrowers are assessed against stringent criteria that include credit scores, personal net worth and income. All potential borrowers shall be assessed and approved by CMI’s credit committee prior to granting a loan.

What is the expected return of the MIC?
While the expected rate of return varies year to year, our diligent investments are geared towards an average return of 8-9% NET to our investors each year.

How does CMI MIC find mortgage borrowers?
The CMI Group of Companies includes a mortgage brokerage which deals with consumers directly, as well as a wholesale multi-modal bond underwriting firm which provides private funds to many of the largest mortgage brokerage firms cross the country.

How often are payments made?
Dividends are remitted monthly and paid by direct deposit, 15 days after the end of the period (eg: March's interest is paid on April 15th).

Can I get my money out at any time?
A Class “A” Preferred Share that has been issued and outstanding for at least 24 months will be redeemed by the Corporation on the Redemption Date next following the date which is 90 days after receipt by the Corporation of the Redemption Request. It same cases, it may be possible to do an early redemption. If/when possible, and provided the fund has enough capital on hand to redeem your shares early, a 2.5% fee will apply between months 13 to 24.

How am I taxed?
Distributions will be taxed as interest income, unless held within a registered plan (RRSP, RESP, LIRA, or TFSA)

How do I invest funds from RRSP, TFSA or RRIF in CMI MIC?
CMI MIC is approved for investment by the Olympia Trust Company. As long as your registered funds are set up through Olympia, funds can be invested in any form or registered plan including RESP and LIRA as well as RRSP, RRIF, and TFSA.

How do I receive my dividends?
CMI MIC pays out 100% of its annual net income to its investors by way of dividends as a tax free pass-through vehicle. As such all income is taxed at the reicipient level as opposed to within the MIC itself.

Are there any risks in investing in a MIC?
While real estate investing is considered to be a much safer investment compared to other investment vehicles, there are risks associated with mortgage lending. Property values are affected by general economic conditions, local real estate markets, the attractiveness of the property to tenants, competition from other available properties and other factors. Ultimately any investment carries a risk. We believe that our MIC provides a good balance to those seeking strong returns without looking to carry unnecessarily high risks. The owners of the MIC along with many of their friends and family members are also investors within the fund.

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