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The mortgage investment corporation (MIC) was created in 1973 as part of the Residential Mortgage Financing Act. At the time of its creation, Parliament believed a housing crisis was coming. With population growth in Canada expected to generate the need for an estimated 2.4 million new homes by 1981, it was estimated that $5 billion of mortgage financing would be required annually for new housing. Mortgage financing for new housing in 1970 was only $2.7 billion – this meant that Parliament was looking at an annual gap of $2.3 billion!
To find out more about MICs, including how Parliament intended for them to help small investors overcome hurdles, the rules behind them and their sudden rise in popularity, view full article written by Partner Tom Morton in CPABC’s In Focus magazine here.