What Is a MIC (Mortgage Investment Corporation) in Canada? (2026)

If a broker tells you your mortgage is being funded by a MIC, it's worth understanding what that means for your rate, your terms, and your options. A Mortgage Investment Corporation is a common, legitimate source of alternative and private financing in Canada. See private mortgage options.

The short answer

A Mortgage Investment Corporation (MIC) is a company that pools money from many investors and lends it out as mortgages. From a borrower's point of view, a MIC behaves like a private lender: it lends mainly on equity, approves files banks decline, and charges higher rates and fees on shorter, often interest-only terms. It's a structured, professional version of private lending.

How a MIC works

Investors buy shares in the MIC; the MIC uses that capital to fund a diversified book of mortgages and pays the profits back to investors as dividends. MICs are governed under Canada's Income Tax Act and must follow specific rules — for example, holding mostly residential mortgages and Canadian assets, and distributing essentially all their income to shareholders. For you as a borrower, this means you're dealing with a regulated, professionally managed lender rather than a single individual.

What a MIC means for your mortgage

• Equity-focused approval — MICs care most about the property's value and your equity, less about credit score or provable income.
• Higher rate and a lender fee — pricing sits above bank and many B-lender levels, reflecting the added flexibility and risk.
• Short terms, often interest-only — typically one year, with the expectation you'll refinance or sell at the end.
• Speed and flexibility — MICs can move faster and accept situations the banks won't.

In other words, a MIC sits at the private end of the lending ladder — see how the tiers compare in A lender vs. B lender vs. private.

When a MIC mortgage makes sense

A MIC can be the right short-term tool when a bank can't help and you have equity to work with:

• Stopping a power of sale or clearing arrears (how to stop a foreclosure).
• Bridging while you rebuild credit (rebuilding credit for a mortgage).
• Financing self-employed or complex income that banks struggle with (self-employed mortgages).
• A short bridge until a refinance or sale completes.

As with any private financing, the key is a clear exit. Read how private mortgages work for the full picture.

MIC vs. an individual private lender

Both lend on equity and price similarly, but a MIC pools many investors and runs like an institution — consistent underwriting, professional servicing, and diversification. An individual private lender may be more negotiable on a one-off basis but less predictable. For most borrowers the experience is similar; the difference matters more to investors than to you.

Frequently asked questions

Is borrowing from a MIC safe?

Yes — MICs are legitimate, regulated lenders used widely across Canada. As with any private or alternative mortgage, the main caution is to treat it as short-term financing with a clear plan to refinance into a cheaper lender.

What rate does a MIC charge?

MIC rates sit above bank and typical B-lender pricing, plus a lender fee, because they take on more risk and offer more flexibility. The exact rate depends on your equity, the property, and the strength of your exit plan.

Can I refinance out of a MIC mortgage?

That's usually the goal. Once your credit, income, or situation improves, you refinance into a B or A lender at a lower rate. A good broker sets that path up before you ever sign with the MIC.

Do I deal with the MIC directly?

Almost always through a licensed mortgage broker, who arranges the financing and ensures the terms and exit make sense for you.

Has a bank turned you down? We'll tell you honestly whether a MIC or private mortgage is the right bridge — and how to get back to bank rates. Explore private options or see all solutions.