Question 1

What is a Mortgage Investment Corporation (MIC)?

Accepted Answer

A Mortgage Investment Corporation (MIC) is a lending and financing company designed specifically for real estate. Investor capital is pooled together in a fund that is used to finance first mortgages on real estate.

Question 2

How does First Island’s MIC work?

Accepted Answer

Investor funds are pooled in First Island's MIC, and the MIC lends this money to borrowers in the form of 1st place mortgages secured by real estate in BC and Alberta. The interest paid by borrowers becomes income for the MIC, which is then distributed to investors as dividend interest.

Question 3

What are the benefits of investing in First Island’s MIC?

Accepted Answer

Investing in First Island's MIC can provide regular income, diversification, and potential tax advantages. It is a way to earn a competitive return on your investment while participating in the real estate market. We also take a conservative approach, prioritizing minimizing risk to protect investor capital.

Question 4

Is my investment in a MIC safe?

Accepted Answer

MIC’s in British Columbia are regulated by the British Columbia Securities Commission (BCSC) and the BC Financial Services Authority (BCFSA). We are also registered under the Mortgage Brokers Act of BC. However, all investments come with risks, and it is essential to understand the specific risks associated with investing in a MIC. Refer to our Investing Section to learn more about how we manage this risk.
BCFSA - www.bcfsa.ca
BCSC - www.bcsc.bc.ca

Question 5

What happens if one of the loan’s held within the MIC defaults?

Accepted Answer

If one of the loans within the MIC defaults, legal action may be taken to recover the outstanding amount from the borrower. Foreclosure on the property securing the loan may take place. First Island MIC is always first on title, meaning we hold the highest priority in case of foreclosure, above all other creditors. In cases where full recovery is not achieved through property sale, personal judgments can be placed against borrowers and guarantors, allowing for potential recovery of the mortgage shortfall from their assets.

Question 6

How do I become an investor in First Island’s MIC?

Accepted Answer

To become an investor,  contact us for information on the investment process, minimum investment requirements, and documentation.

Question 7

What is the minimum investment amount?

Accepted Answer

We require a minimum initial investment of $5,000 for new investors.

Question 8

What is your investment term and redemption policy?

Accepted Answer

Our investment term is 18 months from the date of deposit. Investors may request their principal upon 90 days' written notice, subject to available funds.
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Question 9

How are returns distributed to investors?

Accepted Answer

Returns are distributed to investors in the form of interest dividends. Dividends are paid via direct deposit every three months. You can expect the payment within seven  business days of the end of each quarter. Investors can also choose to reinvest their interest, maximizing the benefits of compounding interest.

Question 10

What types of loans does First Island’s MIC invest in?

Accepted Answer

We invest in a range of first place mortgages, which may include construction and development, residential, commercial, mixed-use, land acquisition, purchase and re-sales, and lease restructuring.

Question 11

Can I invest through an RRSP, RRIFs or TFSA?

Accepted Answer

Yes, First Island offers the option to invest through registered accounts like RRSPs, RRIFs, and TFSAs, which can provide tax advantages. We also provide the option to invest through non-registered accounts (personal or corporate).  Contact us to inquire about our options.

Question 12

Are there any fees associated with investing in First Island’s MIC?

Accepted Answer

First Island does not charge fees for any of your investment transactions. Additionally, as an added benefit to our investors, First Island pays the annual administration fee directly to the trustee for all registered accounts (RRSP, RRIF, TFSA).

Question 13

What is our maximum loan-to-value ratio?

Accepted Answer

We lend up to a maximum loan ratio of 75%.

Question 14

What areas do we lend in?

Accepted Answer

Lending in British Columbia and Alberta, however we mainly lend in urban centers on Vancouver Island and surrounding areas.

Question 15

What loan terms do we offer?

Accepted Answer

Average loan terms are 6 months to 2 years, with the potential to renew at the Lender's discretion.

Question 16

What are our loan amounts?

Accepted Answer

We lend up to $8,000,000.

Note depending on our cash flow and deal factors we may have a co-lender take a portion of the loan amount.

Question 17

What due diligence is required prior to funding?

Accepted Answer

Our due diligence includes  but is not limited to review of appraisal, contract of purchase and sale and/or statement of adjustments, financials of borrower(s) and/or guarantor(s), credit checks, credit committee approval and site inspection if applicable.

Question 18

Are standby fees charged for un-advanced mortgage funds?

Accepted Answer

No, First Island does not charge standby fees for un-advanced funds related to construction cost-to-complete loans unless otherwise agreed upon.

2026 Q1 INVESTOR DIVIDEND RATE 5.70% P.A.

Contact us today to discuss investment options!