Investor Education Guide

Everything You Need to Know About Mortgage Investment Corporations

A plain-language guide to how MICs work, who they suit, how they fit inside registered accounts, and what to ask before you invest.

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1994
Year established
$30M+
Combined AUM (May 2026)
2 Funds
Different mandates & risk profiles
Olympia Trust
Independent fund trustee
MNP LLP
Independent fund auditor

A Pool of Capital. A Portfolio of Mortgages.

A Mortgage Investment Corporation (MIC) pools capital from multiple investors and deploys it as mortgages secured by Canadian real estate. As loans are repaid and interest accumulates, those returns flow back to investors, when declared by the fund's board as distributions.

Investors
Pool capital
Capital
Distributions
MIC Pool
Deploys capital
Lending
Interest
Borrowers
Real property

Secured Lending

Every mortgage in a MIC portfolio is secured against real property, meaning the asset backs each loan.

Canadian Real Estate Only

By law, MICs must invest exclusively in Canadian mortgages and real estate-related assets.

Governed by the ITA

MICs are defined under Section 130.1 of Canada's Income Tax Act, with strict rules around what they can hold and how distributions are treated.

How It Works

From Capital Contribution to Declared Distribution

Five steps that explain the full lifecycle of your investment inside a MIC.

Step 1
You invest in MIC shares
You buy shares in a MIC directly through the fund. Your capital is pooled alongside other investors and allocated across the MIC's mortgage portfolio.

MIC shares are not listed on any stock exchange. You buy them directly through the MIC. This means your investment is less liquid than stocks, but it also means the value does not fluctuate daily with the market.

  • Great Pacific's minimum investment is $25,000
  • Can be held in a TFSA, RRSP, RRIF, or taxable account
  • You receive confirmation of your share allocation
Step 2
The MIC lends to qualified borrowers
The MIC deploys capital as first or second mortgages on Canadian real property, secured against the underlying asset.

Borrowers in the private mortgage market often include developers in early project stages, self-employed individuals with strong assets but irregular income, and people who need short-term bridge financing. All loans are secured against real property.

  • Primarily residential properties in BC markets
  • Loans assessed for property value, borrower profile, and exit strategy
  • Typical loan terms of 1 to 3 years
Step 3
Borrowers pay interest
Private mortgages carry higher rates than bank mortgages because the borrowers represent more complexity. The MIC earns this interest income.

Mortgage terms in a MIC are generally short, usually under two years. This keeps the money moving and allows the MIC to respond to changing rates. Interest is earned continuously as loans are active in the portfolio.

Step 4
You receive dividends
By law, a MIC must distribute 100% of its net income to shareholders. You receive your share of that income as dividends, paid out when declared.

These dividends are taxed in your hands as interest income, not as capital gains or eligible dividends. If you hold your MIC investment inside an RRSP, RESP, RRIF, or TFSA, the income grows sheltered from tax until withdrawal, or tax-free in the case of a TFSA.

  • Great Pacific declares distributions quarterly
  • Distributions are not guaranteed; they are declared at board discretion
  • Inside a TFSA: tax-free growth
Step 5
Each mortgage is backed by property
Every mortgage the MIC issues is secured against real property. If a borrower defaults, the MIC has recourse to the underlying security. This does not make MIC investments risk-free.

This does not make MICs risk-free. Property values can decline, and not every default results in full recovery. But the structure is designed to protect the pool through diversification across many loans and through the security taken on each one.

  • Liquidity is more limited than public securities
  • Investors should plan for their intended hold period before investing
  • Early redemption may be subject to fees or notice requirements

Download the GPMI 2026 Guide to MICs

A condensed overview of key MIC facts, registered account eligibility, and the questions to ask before investing.

The GPMI 2026 Guide to MICs

A complete guide to MIC structure, registered account eligibility, who borrows from a MIC, and a pre-investment checklist.

Download PDF

Estimate Your Potential Income

Adjust the sliders to model how a MIC allocation could work within your portfolio. All figures are illustrative only. Past performance is not indicative of future results.

$100,000
$25K$500K
8.0%
5%12%
1 yr *
3 yr *
5 yr
10 yr
TFSA
RRSP/RRIF
Non-Registered
Tax-free growth inside TFSA.
Reinvest Distributions
Estimated Total Return
$0
Over 1 year(s), before tax
Average Annual Income
$0
Tax-free when held in TFSA
How this compares
MIC (8% illustrative)$0
GIC (est. 4.5%)$0
HISA (est. 3.5%)$0

For illustrative purposes only. Not a guarantee of returns. Distributions are declared at the discretion of the board. Past performance is not indicative of future results. Consult a qualified financial advisor before investing.

* MIC investing is suited to a minimum 5-year time horizon. These projections do not reflect a recommended holding period. Investors who may need access to their capital in the near term should consider whether a MIC is appropriate for their situation.

Who Invests in MICs?

MICs attract a range of investors. Click the profile that most closely matches your situation.

The GIC Migrator

You've held GICs for years and are comfortable with fixed-income investing, but you're looking for the potential for higher income than GICs currently offer, without taking on equity market risk.

The Registered Account Optimizer

You have RRSP, TFSA, or RRIF room you'd like to deploy into income-generating assets. You want your registered accounts working harder with interest income that compounds tax-sheltered or tax-free.

The Equity Borrower

You own property with significant equity and want to put existing wealth to work in real estate-backed income, without taking on landlord responsibilities. You understand this type of investment carries its own risks and want to evaluate fit carefully.

The Estate and Income Planner

You're focused on preserving capital while generating declared income, whether for retirement cash flow, a structured estate plan, or supplementing pension income. Predictable income that arrives on a regular schedule matters more than growth potential.

MICs vs. Other Income Options

A structural comparison, not a performance promise. Every investment carries risk; this table reflects typical structural characteristics only.

Feature MIC GIC Stock Market HISA Direct Real Estate
Income Type Interest income (when declared) Guaranteed interest Dividends / capital gains Interest income Rental income / capital gain
Backed by Real Estate Yes No No No Yes
RRSP / TFSA / RRIF Eligible Yes Yes Some Yes No
Liquidity Low (no redemption rights) Low (locked in) High (daily) High Low (months)
Price Volatility Low (private) None High None Moderate
Minimum Investment $25,000 (GPMI) Varies ($500+) Varies ($1+) None $50,000+ (typical down)
Management Required None (passive) None Varies None High (landlord duties)
The GPMI Funds

Two MIC Funds, Two Risk Profiles

Great Pacific manages two separate MIC funds. Both invest in BC real estate mortgages, both are eligible for registered accounts, and both distribute income quarterly when declared by the board. They differ in mortgage type, average portfolio LTV, and mandate.

Flagship Fund
Accredit Mortgage Ltd.
Est. 1994 · Broader mandate · 1st, 2nd & 3rd mortgages · BC residential & construction
8.77%
2024 Dividend Yield
6.84%
2025 Dividend Yield
65%
Avg. Portfolio LTV
$19.5M
Assets Under Mgmt.
Annual Dividend Yield, 2015 to 2025
15
16
17
18
19
20
21
22
23
24
25
Historical dividends paid. Past performance does not predict future results.
RRSP · RRIF · TFSA · Cash Quarterly distributions Trustee: Olympia Trust Co. Auditor: MNP LLP
Conservative Fund
First Accredit Mortgage Corp.
Est. 2001 · Senior first mortgages only · No junior or subordinate positions · 50%+ residential/cash
6.92%
2024 Dividend Yield
5.68%
2025 Dividend Yield
51.97%
Avg. Portfolio LTV
$10.5M
Assets Under Mgmt.
Annual Dividend Yield, 2015 to 2025
15
16
17
18
19
20
21
22
23
24
25
Historical dividends paid. Past performance does not predict future results.
RRSP · RRIF · TFSA · Cash Quarterly distributions Min. investment: $5,000 Target yield: 5% to 8%
What is Loan-to-Value (LTV)?

LTV compares the mortgage balance to the property's appraised value. If a property is worth $1,000,000 and the MIC lends $650,000, the LTV is 65%. The 35% gap between the loan and the property's value is the equity cushion. If a borrower defaults and the property needs to be sold, that cushion must shrink to zero before the MIC starts to lose capital on that mortgage. A lower average portfolio LTV is generally considered more conservative, though it does not eliminate risk.

Fund data as at May 21, 2026. Historical dividends paid; past performance does not predict future results. Distributions are declared at the discretion of each fund's board and are not guaranteed. Both funds are available to investors who meet applicable suitability and eligibility requirements. This material is for informational purposes only and does not constitute an offer to sell securities. Investors should read the relevant offering documents and speak with a qualified GPMI representative before making any investment decision.

About Great Pacific

Local expertise, managed with care

Great Pacific Mortgages & Investments is a Victoria-based mortgage and investment firm serving BC clients since 1994. We are a registered Exempt Market Dealer, and our two MIC funds are independently administered by Olympia Trust Company and audited annually by MNP LLP.

Our team arranges both mortgage financing and MIC fund investments. That dual perspective means we understand the lending side of every mortgage the funds hold, not just the investment side. We are a team of six people, and our clients deal with us directly.

Since 1994
Serving BC investors and borrowers
Exempt Market Dealer
Registered to distribute securities
Olympia Trust Co.
Independent trustee for both funds
MNP LLP
Independent auditor for both funds
101-835 View Street, Victoria, BC
Great Pacific team at work
Who Borrows from a MIC?

Why Some Borrowers Choose Private Lending

A borrower may use private mortgage lending because a bank does not fit the situation. That does not always mean the borrower is a bad credit risk. It often means the file is more complex, more time-sensitive, or outside a bank's standard box.

Self-Employed Borrower

"A successful freelance consultant wanting to buy a home."

Why a bank may say no
Banks often require two years of traditional T4 income. Self-employed income can fluctuate or be heavily expensed, making it difficult to meet automated underwriting thresholds.
What the MIC reviews
Bank statements, business contracts, and the actual value of the property being purchased.
Investor note: The borrower has demonstrated cash flow but does not fit standard automated bank underwriting criteria.

Bridge Financing

"A homeowner buying a new property before their current one sells."

Why a bank may say no
Banks usually require a firm, unconditional sale agreement in place before they will advance bridge financing.
What the MIC reviews
The equity in the existing home and the realistic timeline and plan for its sale.
Investor note: This is typically a very short-term loan, often a few months, backed by substantial property equity.

Construction or Renovation

"A property owner adding a laneway house or doing a major renovation."

Why a bank may say no
Traditional lenders hesitate to lend against incomplete properties or projects not built by large developers with established track records.
What the MIC reviews
The project budget, contractor experience, and the "as-complete" appraisal value of the finished property.
Investor note: Funds are typically advanced in stages as the work is completed and inspected, which manages draw risk.

Time-Sensitive Opportunity

"An investor needing to close quickly on a discounted property."

Why a bank may say no
Bank approvals can take weeks. This borrower needs funding in days to meet a closing deadline or capture a time-limited opportunity.
What the MIC reviews
The property value, the borrower's exit strategy, and the reason for the urgency.
Investor note: Borrowers are often willing to pay a premium rate for speed and certainty of execution.

A note on risk: Private lending can charge higher interest because the loans can involve more complexity, shorter timelines, or less conventional borrower profiles. Higher income potential comes with higher risk, including the risk of loss of principal.

Portfolio Builder

Where Can a MIC Fit in a Portfolio?

Adjust the sliders to explore how a MIC allocation fits within your broader portfolio. For educational purposes only, not investment advice.

Cash & GICs
Bonds
Stocks & ETFs
Real Estate
MICs

Moderate MIC Allocation (10% - 25%)

A moderate MIC allocation may suit investors who are looking for income and can accept some private market risk. The rest of the portfolio should still be reviewed for liquidity, growth, and overall risk.

May be a fit if you:
  • Want income from mortgage lending
  • Are comfortable with investments that are not guaranteed
  • Do not need immediate access to the money
  • Want real estate exposure without owning another property
  • Want to use registered or corporate funds, where eligible
May NOT be a fit if you:
  • Need full liquidity
  • Want a guaranteed return
  • Are not comfortable with private lending risk
  • Need simple daily pricing like public stocks or ETFs
  • Do not understand how the fund works yet
Your Path Forward

How Investors Can Review MICs

A practical roadmap from understanding the basics to making an informed decision about whether a MIC may suit your goals.

1

Learn the basics

Use this guide to understand what MICs are, how they work, and where the risks sit before going any further.

2

Complete a short questionnaire

Answer a few questions about your goals, account type, time horizon, and comfort with risk.

3

Book a 30-minute call

Speak with a qualified investment professional to ask questions and understand whether a MIC may be worth reviewing further.

4

Review the documents

Read the investment documents, fund details, fees, redemption rules, and risk disclosures before making any decisions.

5

Complete a suitability review

Before investing, a suitability review should confirm whether the investment is appropriate for your specific situation.

6

Invest, if appropriate

If the investment is suitable and you choose to proceed, review the subscription paperwork and funding steps carefully. Minimum $25,000.

Your Pre-Investment Checklist

I understand a MIC is not a guaranteed or insured product
I've confirmed MIC shares are eligible in my registered account type
I understand distributions are declared by the board, not guaranteed
I've reviewed the redemption terms and understand the liquidity limitations
I've read or requested the Offering Memorandum
I've spoken with a financial advisor about suitability for my situation
I meet the minimum investment amount of $25,000
I understand how MIC distributions are taxed in my account type

Ready to talk it through?

Book a 30-minute suitability call with the GPMI team. No obligation, just an honest conversation about whether this investment fits your goals.

Book a 30-Minute Call
Common Questions

Frequently Asked Questions

Plain answers to the questions investors ask most often about MICs, distributions, and GPMI specifically.

Ask Us Directly

Is a MIC the same as a GIC?

No. A GIC usually pays a fixed rate and may be covered by deposit insurance if it meets the applicable rules. A MIC is an investment in a mortgage lending company. MIC returns are not guaranteed and are not deposit-insured.

Are MICs secured by real estate?

MICs lend through mortgages secured by real estate. That security matters, but it does not remove risk. Property values can change, borrowers can default, and recovery can take time.

Can I hold a MIC in my TFSA or RRSP?

Shares of a MIC may qualify for registered accounts such as RRSPs, RRIFs, RESPs, and TFSAs if the investment meets the required rules. Current eligibility should be confirmed with your financial institution before an investor proceeds.

How often do investors get paid?

That depends on the MIC and its distribution policy. Great Pacific declares distributions quarterly. Investors should review the specific fund documents for timing and terms.

Are MIC returns guaranteed?

No. Returns depend on the mortgage portfolio, borrower repayment, expenses, defaults, market conditions, and the MIC's distribution policy. Distributions are declared at the discretion of the board.

Why are MIC returns often higher than GIC rates?

MICs involve more risk than a typical GIC. Investors may receive higher income because they are taking on private mortgage lending risk, liquidity risk, and real estate market risk.

Can I get my money out whenever I want?

Not necessarily. Each MIC has its own redemption rules. Some may require notice, limit redemptions, or delay redemption if there is not enough available cash. Investors should understand this before investing. Full terms are in the Offering Memorandum.

What happens if a borrower defaults?

The MIC may work with the borrower, enforce the mortgage, sell the property, or use other recovery steps. This can take time and may affect income or capital. There is no guarantee that the full principal will be recovered in all circumstances.

Who might consider a MIC?

A MIC may be worth reviewing for investors who want income, understand the risks, and do not need immediate liquidity. It may not suit someone who needs guaranteed returns, daily access to funds, or a very simple investment structure.

What is the minimum investment?

The minimum investment in Great Pacific's MIC is $25,000. Contact the team to discuss your specific situation and any applicable account requirements.

Great Pacific Mortgages & Investments

Ready to Explore Whether a MIC Fits Your Portfolio?

Book a 30-minute call with the Great Pacific team. We'll walk you through our fund, answer your questions, and give you an honest assessment of fit, no pressure, no obligation.

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