I am an Investor
Information for Investors
Investment Information
Investor Guidelines ( Term Sheet)
• MIC stands for: Mortgage Investment Corporation.
• You are buying Class “B” Preference Shares into Richview Capital MIC Inc (“Richview”)
• Each share is sold at $10.00 per share.
• Minimum Investment of $100,000.00.
• Minimum length of investment is 2 years.
• Richview’s target rate of return is 7% annually
• Richview invests in short term mortgages, which are a diverse portfolio of 1st and 2nd mortgages.
• Minimum Credit Score for each mortgage application is 600; Richview also reviews and seeks confirmation of debt serviceability.
• Richview’s loan to value (“LTV”) ratio target is 75 up to a maximum of 80% LTV.
• Lending Parameters are in a geographic diversification of investments in the greater Toronto area.
• Structures are mixed residential, high rise Condo (maximum of 20 years old) and construction financing.
• RRSP INVESTMENTS: Fees apply for registered accounts.
• For non-registered funds (i.e. cash), no fees are charged.
• Quarterly payments are paid by direct deposit (estimated payment dates are March 30, June 30, September 30, December 31)
• Dividend Investment statements are issued for every quarter.
• Richview’s financial statements are audited annually.
• Ways to invest in Richview: (i) non-registered accounts (Cash); and (ii) registered accounts (RSP, RIF,TFSA,LIRA,RESP, LIF).​
The Income Tax Act requires that 100% of a MIC’s annual net income, as verified by external audit, be distributed to its shareholders, in the form of a dividend. This dividend is taxed as interest income, in that it primarily represents a flow-through of the interest earned on the Company’s mortgage portfolio. Since a MIC pays all of its net profit to its shareholders each year, the MIC itself is not taxed. This is a significant advantage for MIC shareholders, increasing their yield as the two levels of tax applied to regular corporations are avoided. Like any company, a MIC’s net income is equivalent to its revenues, less its expenses. A MIC’s revenues are comprised of mortgage interest and fee income. Expenses are predominantly comprised of management fees, audit and other professional fees, and loan interest, if the MIC is employing debt in addition to share capital.
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