Welcome to the EquityLine MIC
Welcome to the EquityLine Mortgage Investment Corporation (MIC). Our MIC is a way for people to come together and invest in real estate to an amount that best suits their individual financial plan. How is this accomplished? The accumulated pool of money is invested in carefully selected mortgages backed by real estate properties. The interest from those mortgages is paid to investors in the form of a monthly dividend. Simple. Well rewarded. Efficient.
Monthly Dividends for Private Market Investors
EquityLine Mortgage Investment Corporation (EquityLine MIC) provides investors an opportunity to generate a stable, predictable monthly dividend through a purchase of Series B shares in the EquityLine MIC. These shares have delivered a historical 8% annualized rate of return with a targeted rate up to 10%, paid monthly.
Investors who purchase these shares participate in a pool of 1st and 2nd mortgage investments on prime urban residential properties in the Southern Ontario region of Canada.
Taxation of Dividends
Under Section 130.1 of the Income Tax Act (Canada), mortgage investment corporations (“MIC”) such as EquityLine MIC do not pay income tax as long as 100% of the profits/dividends they earn are given to their shareholders. Normally, these dividends are taxed in the shareholders’ hands as interest. This tax treatment of MICs by the Canada Revenue Agency avoids the double tax that corporations pay on interest income.
Deferred Income Plan Eligibility
Our Series B Preferred Shares and Series H Preferred Shares are considered qualified investments under the Income Tax Act (Canada) for a trust governed by a registered retirement savings plan (“RRSP”), a registered retirement income fund (“RRIF”), a deferred profit sharing plan, a registered disability savings plan (“RDSP”), a tax-free savings account (“TFSA”) and a registered education savings plan (“RESP”) (collectively, “Plans”), provided that the Corporation qualifies as an MIC throughout the taxation year and further provided that, at any time in the relevant calendar year, the Corporation does not hold any indebtedness, whether by way of mortgage or otherwise, of a person who is an annuitant, a beneficiary, an employer or a subscriber under (or a holder of) the Plan or of any other person who does not deal at arm’s length with that person.
Investing in an MIC like EquityLine MIC can be attractive for these kinds of Plans because MICs are not subject to taxation and Plans do not pay any tax on the interest they are estimated to receive. It is important, however, to speak with your financial and tax advisors before investing in an MIC to determine if it is a suitable investment for you and your Plan.