Most Canadians hear “mortgage investment corporation” and picture one product: a pooled vehicle that pays income while someone else underwrites the loans. That is the lending side. There is another seat at the table—equity—where you participate as a limited partner and take project upside if the value-add works.
On The Wisdom Lifestyle Money Show, mortgage expert Scott Dillingham sat down with Milan Djankovic of Keasy MIC. They walked through a LendCity + Keasy MIC partnership that can offer cash flow through preferred shares in the MIC, LP equity, or a mix of both. Scott Dillingham is a mortgage expert who has helped clients finance over $1 billion in real estate across Canada.
What is a mortgage investment corporation in Canada?
A mortgage investment corporation is a Canadian tax and corporate structure that pools investor capital and deploys it as mortgages on real estate. You typically buy shares. The corporation lends. Interest and fees from those loans are the engine behind investor cash flow.
Search results often use “mortgage investment funds in Canada” as a catch-all. In practice, the MIC is the structure most people mean: a corporation built to hold Canadian mortgages and distribute income to shareholders, subject to Income Tax Act rules and securities law.
MIC shares are securities. On this episode, investors are onboarded through an exempt market dealer—know-your-client (KYC) and suitability—not a handshake and a wire. That dealer step is the legal path for a pooled offering. For the pooled-vehicle basics, read the Mortgage Investment Corporations guide in Canada. If you want a charge on one property in your own name instead of shares, compare MIC vs direct private mortgage investing.
Lending cash flow vs LP equity—or a mix
The useful split in this episode is not “MIC versus real estate.” It is how you get paid.
| Seat | What you are in | How money can come back |
|---|---|---|
| Lending / preferred shares | MIC shareholder on the debt side | Cash flow from the lending book |
| Equity / LP | Limited partner on the project | Upside if the value-add and exit work |
| Mix | Some of both | Income plus a share of project outcome |
Preferred shares / MIC lending is the cash-flow seat. Capital goes into the corporation. The MIC makes loans. You are not running the renovation or picking tenants.
LP equity is the upside seat. You are an equity partner in the project economics—construction, lease-up, refinance or sale—not just a lender collecting interest.
The partnership discussed on the show is built so an investor can take lending, equity, or a mix. That is the product design: one relationship, two economic exposures, sized to how much income versus upside you actually want.
If the equity side is the one you care about, how to evaluate a development partnership as an LP is the due-diligence checklist to run before you commit. For the lending path in general, start with how to invest in private mortgages in Canada and the page to invest in private mortgages in Canada.
Can you use RSP or TFSA funds?
Yes—the offering discussed on the episode accepts RSP and TFSA funds. In Canada that usually means a self-directed RRSP (often called an RSP) or a TFSA that is allowed to hold the qualified investment, with a trustee administering the account.
Registered money does not make the investment “safe.” It changes the tax wrapper. Interest or distributions inside an RRSP are tax-deferred until withdrawal. A TFSA can shelter growth tax-free when the investment is a qualified holding. Whether a specific MIC share or LP unit is a qualified investment for your plan is a dealer, trustee, and tax-professional question—not a slogan.
For the direct-lending version of registered accounts (mortgage registered in the plan’s name), use the step-by-step RRSP private mortgage investing guide.
Governance: audit, dealer KYC, and legal counsel
Pooled mortgage investing lives or dies on process. The episode highlighted three controls worth putting on any MIC shortlist:
- Annual audit by BDO. An outside auditor is not a guarantee of returns. It is a check on the books you are being asked to trust.
- Exempt market dealer onboarding. KYC and suitability sit with a registered dealer. If someone skips that and asks you to wire into a “MIC” on a PDF, that is not the same product.
- Legal counsel Castles, mentioned on the episode as counsel on the file. Counsel does not remove investment risk. It is part of how documents, security, and offering mechanics get papered.
None of that replaces your own due diligence. Read the offering documents. Ask how loans are selected. Ask what happens if a borrower stops paying. Ask how you get your capital back.
LendCity’s investor resources and education hub is the place to keep learning the mortgage and partnership pieces before you sign anything.
Example: Hamilton 10-plex adding four units
Milan walked through a concrete construction loan—not a distressed homeowner story.
A Hamilton 10-plex was adding four units, taking the building from 10 to 14 suites. The MIC lent $600,000 for construction. The planned exit is CMHC MLI Select after the work is done and the income story supports takeout financing.
That sequence is the whole point of selective underwriting: lend into a defined scope, then refinance into a CMHC-insured multifamily mortgage so the private capital can come out. For program mechanics, use the CMHC MLI Select multifamily financing hub.
This is construction and value-add lending. It is not the same as funding a consumer who is behind on a house and has no refinance path.
Risk, clean exits, and what Scott will not do
Risks exist. Loans default. Construction runs long. CMHC can delay or decline a takeout. Preferred shares and LP units can lose value. An audit and a dealer do not change that.
Scott’s filter on the show is blunt: clean exits and selective underwriting. The team is not in the business of distressed consumer private lending—the “buy time so someone can stay in a house they cannot afford” file with no refinance and no sale plan.
Before capital goes out, you want to see the same things a careful lender sees: the property, the work, the borrower, and a realistic takeout. If those are fuzzy, the yield on a slide deck is not the story.
Frequently Asked Questions
What is a mortgage investment corporation in Canada?
What are mortgage investment funds in Canada?
What is a MIC?
How do preferred shares in a MIC differ from LP equity?
Can you invest in a mortgage investment corporation with RRSP or TFSA funds?
How should you evaluate mortgage investment corporations in Canada?
How does a MIC construction loan exit through CMHC MLI Select?
Does this episode explain how to start a MIC?
Disclaimer: LendCity Mortgages is a licensed mortgage brokerage. Content on this page is for educational purposes only and does not constitute legal, tax, investment, securities, or financial-planning advice. Rates, premiums, program terms, and regulations referenced are as of the page's last updated date and are subject to change. Any investment returns, rental yields, tax savings, or case-study figures shown are illustrative only — they are not guaranteed, not typical, and individual results will vary. Consult a licensed lawyer, Chartered Professional Accountant, or registered dealer before acting on any information above. Editorial standards.
Written by
Scott Dillingham
Published
August 12, 2026
Reading time
7 min read
Mortgage Investment Corporation
A Canadian investment vehicle that pools capital from multiple investors to fund mortgage loans, governed by the Income Tax Act. MIC shares are securities — distribution is regulated under provincial securities law and typically requires a registered dealer and compliance with NI 45-106 exemptions (accredited-investor verification, OM-exemption, or other). Returns are not guaranteed and investors can lose capital if underlying mortgages default. LendCity is not a registered dealer or adviser and does not offer or solicit MIC investments — consult a registered exempt-market dealer and a securities lawyer.
Private Lending
Private lending involves obtaining mortgage financing from individual investors or non-institutional lenders rather than banks or credit unions, typically at higher interest rates but with more flexible qualification criteria. For Canadian real estate investors, private lenders offer a valuable alternative funding source for deals that may not meet traditional lending requirements, such as properties needing significant renovation or situations requiring fast closing timelines.
CMHC MLI Select
A CMHC program offering reduced mortgage insurance premiums and extended amortization (up to 50 years) for multifamily properties with 5+ units that meet energy efficiency or accessibility standards. Popular among investors scaling into larger apartment buildings.
Construction Loan
Short-term financing used to fund building a new property. Funds are released in stages (draws) as construction milestones are completed, and interest is charged only on drawn amounts. Construction loans typically convert to permanent financing upon project completion.
Equity Partner
An equity partner is an individual or entity that contributes capital to a real estate investment in exchange for an ownership stake and a share of the profits, rather than receiving fixed interest payments like a lender. Arrangements that pool capital from passive partners who rely on the efforts of an active partner can be securities under Canadian provincial law (NI 45-106) and may require a prospectus exemption, a registered dealer, and compliance with accredited-investor rules. Consult a securities lawyer before raising equity capital or committing it as a passive partner.
Due Diligence
The comprehensive investigation and analysis of a property before purchase, including financial review, physical inspection, title search, and market analysis.
Takeout Financing
Permanent long-term mortgage financing that replaces a short-term construction loan after a development project is completed and stabilized. Securing a takeout commitment before construction begins reduces project risk.
Underwriting
The process lenders use to evaluate the risk of a mortgage application, including reviewing credit, income, assets, and property value to determine loan approval.
Hover over terms to see definitions. View the full glossary for all terms.