A company that pools investor funds to provide mortgage loans, primarily to borrowers who do not qualify for bank financing.
MICs are regulated under the Income Tax Act and must distribute all net income to shareholders as dividends. They provide an alternative to individual private lending by pooling capital from multiple investors. MIC rates are typically lower than individual private lender rates (8-12% vs 10-15%) because the pooled structure allows for diversification. MICs are common in Ontario's alternative lending market.
Related terms: Private Mortgage