Frequently Asked Questions
Clear answers about investing with Metropointe Capital Inc. If you don’t see your question, reach out – we’re happy to help.
Regulations
- Mortgage Investment Corporations should have at least 20 shareholders. No shareholder can own more than 25% of the total outstanding shares.
- All MIC investments should be in Canada.
- 50% or more of the MIC investment assets should be in residential mortgage loans.
- Annual financial statements of all mortgage investment corporations must be audited.
- A MIC may invest up to 25% of its assets directly in real estate. However, they are not allowed to develop land or engage in construction.
- The Income Tax Act of Canada requires the distribution of 100% of a MICs annual net income (Income less expenses) and therefore MICs pay no corporate tax
- MICs are a flow-through vehicle for tax purposes.
What type of investment vehicles can be used to hold the MIC investments?
- Non-Registered personal and/or corporate account
- Individual RRSP account
- Spousal RRSP account
- TFSA account
- RESP account
- LIRA Account
- LIF Account
- RRIF Account
- FHSA Account
What is minimum investment required?
Minimum initial investment is $25,000 CDN. Subsequent investments do not have a minimal requirement.
What mortgages does Metropointe MIC invest in?
The MIC invests in 1st and 2nd mortgages in both the residential and commercial market. Majority of the mortgages are on residential single family homes in major center’s of British Columbia. Each mortgage investment is secured by a registered mortgage on title of the subject property.
How do dividends get paid out?
Dividends are calculated and paid out on a monthly basis within 10 days of month-end. Investors can reinvest the dividends as additional shares into their investment or have their dividends paid out.
Why investors are currently investing in MICs?
- Putting money in a MIC can be a secure way of growing your income or capital. With this vehicle, real assets are used to secure mortgages while other assets (i.e. insurance policies and personal guarantees) are used to provide additional protection.
- When placing your funds in a broad pool of mortgages you leverage the power of diversification, resulting in managed capital risk while maximizing your returns. With the goal of growing your money, the MIC efficiently manages each mortgage plan for higher returns.
- The MIC enjoys a preferential tax treatment under the Income Tax Act of Canada with cash inflows and capital gains being tax-free. This is beneficial to shareholders because it prevents double taxation especially when a company receives interest on income.