FREQUENTLY ASKED QUESTIONS​

WHAT IS A MIC?

A Mortgage Investment Corporation (MIC), is a Canadian mortgage lending vehicle created to allow investors to invest in a diversified pool of mortgages. Owning shares in a MIC allows investors to receive income from the company in the form of dividends. Acting as a flow-through entity, all interest income earned by the company, minus expenses, is paid out directly to Investors. Shares of a MIC have been deemed qualified investments for Registered Retirement Savings Plans (RRSP), Registered Retirement Income Funds (RRIF), Registered Education Savings Plans (RESP), Locked-In Retirement Accounts (LIRA), and Tax-Free Savings Accounts (TFSA).

To qualify as a MIC, it must satisfy the conditions outlined as per Section 130.1 of the Income Tax Act of Canada:

  • Must have a minimum of 20 shareholders

  • No one shareholder can own more than 25% of shares

  • At least 50% of a MIC’s assets must be residential mortgages

  • A MIC’s annual financial statements must be audited

  • A MIC is a flow-through investment vehicle, meaning it distributes 100% of its net interest income to its shareholders minus expenses.

  • All MIC investments must be in Canada, but a MIC may accept investment capital from outside of Canada.

  • Dividends received with respect to directly held shares (not held within registered investments) are taxed as interest income in the shareholder’s hands.

FREQUENTLY ASKED QUESTIONS

How much does a share cost?


Class A Preferred Shares have a fixed value of $10.00 per share.




Where does Kuber lend?


Kuber’s lending area comprises of the GTA and its regional municipalities. Our target is to remain in the City of Toronto and its surrounding regions, consisting of York, Durham, Halton, and Peel, and maintain a mostly residential portfolio. D




What type of real estate will Kuber lend on?


Kuber offers first and second mortgages on owner-occupied residential properties, single family rentals, and multi-unit rental properties (some exceptions apply). Please contact a Kuber representative for more details.




Does Kuber have a Preferred Appraisal list?


Yes, Kuber has a list of preferred appraisers by region. Call us at 416-477-2118 to speak to a Kuber representative.




Can anyone apply for a mortgage with Kuber?


Kuber accepts applications for mortgages via licensed mortgage brokers only. To find a licensed mortgage broker, you can visit: FSCO - Financial Services Commission of Ontario Mortgage Professionals Canada (previously CAAMP) ...or contact us at 416-477-2118.




Can I break the mortgage?


Kuber typically offers 3 to12 month open mortgages to most of its borrowers, though some exceptions do apply. For more information, please call us at 416-477-2118.




How often are dividends paid out to shareholders?


Kuber MIC's main distribution goal is to achieve an 8% return per annum in the form of monthly dividends, unlike some MICs that choose to pay out quarterly or yearly dividends. This way, you can see immediate results on your investments.