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Decorative Books

FREQUENTLY ASKED QUESTIONS

  • What is a Mortgage Investment Corporation (MIC)?
    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.
  • How does First Island’s MIC work?
    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.
  • What are the benefits of investing in First Island’s MIC?
    Investing in First Island's MIC can provide regular income, diversification, and potential tax advantages. It's 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.
  • Is my investment in a MIC safe?
    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's 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
  • What happens if one of the loan’s held within the MIC defaults?
    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 1st on title, meaning we hold the highest priority in case of foreclosure, above all other creditors. In cases where full recovery isn't achieved through property sale, personal judgments can be placed against borrowers and guarantors, allowing for potential recovery of the mortgage shortfall from their assets.
  • How do I become an investor in First Island’s MIC?
    To become an investor, contact us for information on the investment process, minimum investment requirements, and documentation.
  • What is the minimum investment amount?
    We require a minimum initial investment of $5,000 for new investors.
  • What is your investment term and redemption policy?
    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. ​
  • How are returns distributed to investors?
    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 7 business days of the end of each quarter. Investors can also choose to reinvest their interest, maximizing the benefits of compounding interest.
  • What types of loans does First Island’s MIC invest in?
    We invest in a range of 1st place mortgages, which may include construction and development, residential, commercial, mixed-use, land acquisition, purchase and re-sales, and lease restructuring.
  • Can I invest through an RRSP, RRIFs or TFSA?
    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.
  • Are there any fees associated with investing in First Island’s MIC?
    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)
  • What is our maximum loan-to-value ratio?
    We lend up to a maximum loan ratio of 75%.
  • What areas do we lend in?
    Lending in British Columbia and Alberta, however we mainly lend in urban centers on Vancouver Island and surrounding areas.
  • What loan terms do we offer?
    Average loan terms are 6 months to 2 years, with the potential to renew at the Lender's discretion.
  • What are our loan amounts?
    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.
  • What due diligence is required prior to funding?
    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.
  • Are standby fees charged for un-advanced mortgage funds?
    No, First Island does not charge standby fees for un-advanced funds related to construction cost-to-complete loans unless otherwise agreed upon.
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