FAQs

What is a Mortgage Investment Corporation (MIC)?

A Mortgage Investment Corporation or MIC is an investment and lending company that primarily invests in private mortgage lending. By owning shares in a mortgage investment corporation, investors are able to invest in a company that manages a diversified and secure pool of mortgages. Click here for more information.

How does investing in a MIC compared to investing in mortgage mutual funds?

A MIC engages in direct mortgage lending, and generally does not acquire mortgages, or fractional interests in mortgages, in the secondary market. We do not use derivatives.

Where is Inveloft based?

Our offices are based in Toronto, Canada.

Is Inveloft government regulated?

Inveloft is regulated provincially by the Ontario Securities Commission (OSC).

Is Inveloft a publicly traded company?

Inveloft is not a publicly traded company.

Does the MIC provide audited financial statements?

Yes, as a Mortgage Investment Corporation we are required to have our financials audited within 120 days of our year end.

What does Inveloft invest in?

Inveloft invests mainly in first and second residential and commercial mortgages secured by real property located mostly in Ontario, Canada. Click here for more information.

How do you qualify a buyer to make sure they are a good borrower to lend to?

Our Administrator, Bankore Alliance Funding Corp (BAF), goes through a strict underwriting process that involves the review of the borrower’s covenant. This means that BAF reviews a borrower’s personal information, their credit history/ranking, their income and their reasons for obtaining a mortgage through BAF. Although our decisions are not solely based on credit ranking or income status, BAF takes these factors into account in order to eliminate any high-risk borrowers and applications.

Will Inveloft be registered on title?

Yes, Inveloft will register on title.

What rate can I expect from the MIC?

The MIC is targeting to payout annual dividend of 8.35%, with returns as high as 9.50%.

Are rates guaranteed?

All dividend rates are estimated and not expected rates.

How do I invest?

If you want to invest using cash savings, you can fill out our ‘Subscription Agreement’ and other necessary forms by downloading our Offering Memorandum. If you want to invest using one or more of your Registered Savings Plan than you will need to register with Olympia Trust and proceed from there under their instructions.

If you are unsure and would like to learn more, please contact us directly using any contact method listed on our website.

What methods can I use to deposit payment to Inveloft to buy shares?

You can use direct deposit, certified cheque, money order or bank draft payable to “Inveloft Mortgage Investment Corporation, In Trust”.

Who is qualified to invest with Inveloft?

Currently we can sell preferred shares to investors who categorize under either one of these exemptions, ‘Accredited Investor Exemption’, ‘Minimum Amount Investment Exemption’ and ‘Offering Memorandum Exemption’. Click here for more information.

Can I buy shares at anytime?

Yes, you can buy shares at anytime subject to the acceptance and rejection of Inveloft and/or the Manager (Pegasus Mortgage & Financial Solutions).

What is the current price per share?

The current price per share is $1 for one Preferred Share.

Can I cancel my agreement?

You can cancel your agreement by midnight of the 2nd full business day after you submitted your signed agreement. Example: if you submitted the agreement on Monday, you have until midnight of Wednesday to cancel.

Can I sell shares at anytime?

You can sell your shares back to Inveloft and at the discretion of the Board of Directors.

Can I trade or transfer my shares?

You can submit a transfer request to Inveloft, approval will be at the discretion of the Board of Directors in accordance with the law.

What is the term on my investment?

Purchases of Preferred Shares will be in a minimum “Hold Period” of 12 months. There is no maximum duration of your investment term.

Can I withdraw money from the fund?

Under normal circumstances you cannot withdraw your money from the fund during the initial 12 months “Hold Period”, but can withdraw your money after the hold period. Read our Offering Memorandum for more information.

Is my principle guaranteed?

It is in Inveloft’s best interest to generate income while preserving shareholder’s capital for reinvestment. However, like most financial investments, Inveloft do not guaranteed the retention of investor’s principle.

What is the minimum and maximum amount of units I can purchase?

The minimum investment amount required to purchase shares is $5,000 for cash and $10,000 for registered plans. The amount can be reduced at the Investment Committee’s discretion. At $1 per share this will allow for an investor to purchase 5000 shares with cash or 10,000 shares with registered plans. No single investor can purchase shares which will result in the investor owning more than 25% of the total outstanding shares.

Are there any fees associated with the investing with Inveloft?

Yes, there are various fees such as ‘selling commissions’, legal and accounting fees, management fee and administration fee. As the MIC generate revenues, these fees are covered up and the remaining profits are paid out as Dividends. For more detailed information, please read our Offering Memorandum.”

Can I invest with my registered plans

Yes, you can invest with registered plans such as RRIF, RRSP, RESP and TFSA.

What is a Dividend Reinvestment Plan (DRIP)?

Dividend Reinvestment Plan is a plan that allows an investor to reinvest their cash dividends generated from their existing shares, by purchasing additional shares or fractional shares on the dividend payment date. By reinvesting your cash dividends, your next dividend issued will be calculated based on your existing shares, plus any additional shares added in the previous quarter. We will process dividend re-investment every quarter on the 20th of April, July, October and January.

Can I purchase shares outside of my registered plans?

Yes, you can purchase shares outside your registered plans with cash investment

When and how will I get paid?

Dividends are issued monthly on the 15th or the next business day if the 15th falls on a Saturday, Sunday or Statutory Holiday.

Can I have my lawyer or financial advisor review my documents?

Absolutely, we encourage our investors to understand fully and thoroughly on our investment operations and understand all risks associated with a MIC before investing with Inveloft.

Do I get a T5 at the end of the year?

Yes, at the end of the year the MIC issue’s T5’s to reflect all dividends paid out to our investors.

What is the role of Olympia Trust?

Olympia Trust acts as the Trustee for the Investor and holds the Share Certificates in Trust. The Investor opens their registered accounts with Olympia Trust and then directs them to purchase shares of the MIC using the funds in the registered accounts. The MIC issues share certificates that are sent to Olympia Trust and the funds are transferred from Olympia Trust to the MIC. For more information, please go to Olympia Trust website.

How much does it cost to open an RRSP or TFSA account with Olympia Trust?

Please click here to go to Olympia Trust’s website for their fees.

When is RRSP contribution deadline for a given year?

Please click here to go to Government of Canada’s website for the latest dates on RRSP contribution deadline.

What is the RRSP contribution limit for a given year?

You can find this information on your Notice of Assessment or Notice of Reassessment. Click here for more detailed instructions on Government of Canada’s website.

What is the TFSA contribution limit since inception?

Please click here to go to Government of Canada’s website for detail information on contribution limit.