The Investor Journey
Sunrise Mortgage Investment Corporation is a mutual fund trust registered in Ontario, providing investors with mortgage investment opportunities.
What is a MIC?
In 1973, the Government of Canada established Mortgage Investment Corporations (MICs) through the Residential Mortgage Financing Act. The goal was to simplify investment in residential mortgages and real estate for both individual and corporate investors.
Investors contribute funds by purchasing shares in a MIC. These pooled funds are then used to provide mortgages / secured loans on a wide range of properties, including residential homes, commercial spaces, vacation properties, second homes, studios, restaurants, and offices.. Income is generated through interest and fees paid by borrowers, which is subsequently distributed as dividends to each investor. Investors in mortgage funds benefit from secured consistent returns while borrowers can access funds conveniently secured against their properties, making it a mutually advantageous arrangement.
Benefits of Investing in Mortgage Investment Funds
Investors can reap numerous benefits from investing in mortgage funds. This investment option is advantageous for both borrowers and investors alike.
If you’re interested in exploring mortgage bonds and investment opportunities, consider contacting Sunrise Mortgage Investment Corporation today to learn more about how you can get involved.
Attractive Income and Tax Benefits
- Offer higher returns compared to traditional fixed income investments like bonds or savings accounts
- Provide a steady stream of income to investors, distributions often paid monthly. TFSA, RRSP and RESP eligible
Diversification
- Access to Real Estate Market without direct ownership, avoids complexities of property ownership, management and maintenance
- Can help diversify an investor’s portfolio beyond stocks, bonds, and traditional assets
Reduced risk
- With pool of money from multiple investors to fund a broad range of mortgages, including residential, commercial, or construction loans.
Potential for Higher Yields
- Often focus on borrowers who may not qualify for traditional bank loans.
Accessibility and Liquidity
- MICs provide accessible investment opportunities for those looking to diversify into real estate or mortgages and don’t have the capital for direct property investments or large mortgage portfolios.
- They offer redemption opportunities or scheduled liquidity events, with a potential redemption fee if funds are withdrawn within 24 months.
Hands-Off Investment with Professional Management
- MICs are managed by experienced professionals who handle all aspects of the mortgage portfolio, including underwriting, monitoring, and risk management
- Saves investors time and effort, while ensuring the portfolio is actively managed to mitigate risk and maximize returns. Investors can have confidence that their investment is in expert hands.
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Sunrise Mortgage Investment Corporation focuses on investing in mortgages secured by real estate properties in Ontario, ensuring the solidity of investments.