Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Click edit button to change this text. Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

A private mortgage is simply a mortgage held by an individual, group of individuals, or private corporate entity, such as a Mortgage Investment Corporation (MIC), instead of a bank or other institutional lender.

All shareholders receive a copy of the annual audited statements and an individualized statement reflecting dividend calculations and share related activity, as well as quarterly management prepared financial statements.

The Income Tax Act requires that 100% of a MIC’s net income, as verified by Independent audit, be distributed annually to shareholders in the form of a dividend. Magenta Class “A” Share dividends are paid monthly and may be received in cash or re-invested in additional shares by way of the Company’s Dividend Re-investment Plan (DRIP). Cash dividends are remitted by way of electronic bank deposit.

The dividend is taxed as interest income, in that it essentially represents a flow through of mortgage interest income.  Both cash and stock dividends earned outside of an RSP, RRIF or TFSA are fully taxable in the calendar year received.

Monthly dividends are paid at a rate sufficient to achieve an annual effective rate of return equivalent to the Target Yield set on June 1st, the first day of the fiscal year.

The Target Yield is equivalent to the Government of Canada 2 Year bond yield on June 1st plus 5.50%.

The Target Yield for fiscal 2018 ending May 31, 2018, is 6.20%.

At the conclusion of the annual audit, a “top-up” dividend is paid in the event that net income exceeds that level of income required to fund the monthly dividends based on Target Yield.

Shares issued by way of stock dividends at the conclusion of the audit are allotted on June 1st and accordingly are fully eligible for dividends commencing on that date.

Magenta Class “A” Share dividends have alwasy been at least equvialent to the Target Yield.

Shares issued by way of stock dividends at the conclusion of the audit are allotted on June 1st and accordingly are fully eligible for dividends commencing on that date.

Shares may be retracted at any time with a minimum of one month’s notice.

Retraction fees equivalent to a percentage of the value of the shares being retracted apply in the first year following purchase only, as follows: (i) first 6 months, 3.75%; (ii) second 6 months, 2.00%.  The retraction fee does not apply once the shares have been outstanding for 1 year or more. 10% of the investment may be retracted in the first year following purchase without a retraction fee.

Terms and conditions with respect to the purchase of shares for cancellation are specified in the subscription agreement, available upon request.

RRSP/RRIF INVESTMENT, for complete details.

An individual investor may fund 100% of an individual mortgage, and hold the mortgage directly. The investor is solely responsible for sourcing and evaluating the mortgage investment, negotiating the interest rate and other terms and conditions applicable to the mortgage, and instructing the solicitor preparing and registering the mortgage.

Subsequently, the investor has to collect the payments, and deal with any arrears or default problems that may arise. Given the typical principal amount of mortgages in today’s real estate market, the investor would require a huge amount of capital to fund even a small mortgage portfolio. The investor would also typically be restricted to sub-prime mortgages falling outside of the strict lending criteria employed by a large mortgage lender like Magenta.

A Mortgage Investment Corporation (MIC), is a private mortgage investment vehicle wherein individual investors pool their investment capital through share acquisition. The MIC employs a professional manager to source, scrutinize and acquire individual mortgages with the best risk/return profile. The manager is responsible for all aspects of mortgage portfolio administration.

The mortgage portfolio is continuously managed, with newly invested share capital, and the proceeds from repaid and discharged mortgages, being utilized to fund new mortgages. 100% of a MIC’s net income, as verified by external audit, is paid out to the shareholders by way of an annual dividend.

A non-bank mortgage is simply a mortgage held by an individual, group of individuals, or private corporate entity, such as a Mortgage Investment Corporation (MIC), instead of a bank or other institutional lender. The legal status of any mortgage is the same, regardless of who holds the mortgage.

The mortgage borrower is legally obligated to effect repayment, at a stated interest rate, to the mortgage holder, or mortgagee, within a stated time period.

The mortgage loan is secured by a charge on the underlying real estate owned by the mortgage borrower. Non-bank mortgage interest rates are typically higher than bank mortgage rates. Accordingly, private mortgage investors have the potential to achieve appreciably higher investment returns than those afforded by other fixed income type investments, such as GICs, bonds, and preferred shares.