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Frequently Asked Questions

 

What does MIC mean?

MIC is the acronym for Mortgage Investment Company.
 

What does a MIC do?

A Mortgage Investment Company (MIC) is in the business of earning interest income through their investments in mortgages secured against qualifying real estate
 

How does a MIC operate?

A MIC raises investment capital by selling Shares to individual investors with the object of creating a large pool of funds. The large pool of funds provides the investors a greater opportunity to access a broader range of mortgage investments while significantly reducing their investment risk. Market access is improved because of the amount of money that is readily available for lending and risk is reduced because the fund is invested in multiple mortgages and all the mortgages are owned by all the investors in the fund so the individual investor is not exposed to any single mortgage.
 

How is a MIC taxed?

A MIC is a flow through investment and therefore not taxable at the corporate level. All income flows through to the shareholder, whether it is a person, corporation, society or Registered Savings Plan, where it is taxed according to the shareholder's individual situation. This affords the individual many opportunities to structure their investment vehicle to their best advantage. Your income, whether received or reinvested, is reported via a T-5 in the calendar year in which it was earned.
 

How safe is my money?

Your investment is secured by first & second mortgages registered against qualifying real estate in British Columbia. Kensington never lends more than 75% of the appraised value of the security pledged. As a MIC, we must report all of our share sales to the BC Securities Commission on a regular basis.
 

How much do I need to invest?

The initial minimum amount for investing in Kensington is $35,000.00
 

How do I receive my interest?

There are 2 options for receiving your income from Kensington Realfund Corp.;
  1. You can have the earned amount electronically sent to your bank account monthly.
  2. You elect to participate in the direct re-investment program. (DRIP)
 

What if I need my money back?

You are required to give ninety days' notice.
 

Are there any fees?

There is a 1.75% annual management fee paid to Mid-Island Mortgage & Savings to cover the administration and office costs. Members may withdraw funds once per calendar year without charge, however, additional lump sum withdrawals within the same year are subject to a service fee.
 

Can I use my RSP or RIF?

Yes, Kensington is 100% Canadian owned and operated and is eligible for RRSP, RSLP and RRIF investment.
 

"Kensington RealFund Corp. has proven to be a welcome and reliable addition to our retirement portfolio. We have participated in the program since 2004 and have found Stuart Gautier's quiet professionalism, willingness to oblige and lack of pretense a refreshing change from the impersonal, corporate attitudes within today's investment companies. The related reward for risk has been very favourable."

- M.& D. Gray,