At Levy Zavet we pride ourselves on knowing all that it takes to manage and operate a Mortgage Investment Corporation. As one of the pioneers in this industry, the lawyers at Levy Zavet can assist you with:
- Preparing your initial Offering Memorandum, Subscription Agreement and business plan to provide your investors and shareholders.
- Navigating through the intricacies of completing a subscription agreement, the exemption from prospectus certificates and acknowledgements, the know your client (KYC) and know your product (KYP) forms.
- Completing your exempt distribution reports and filing them with the securities commissions and regulators in a timely manner.
- Issuing shares to shareholders, updating the required corporate resolutions, registers and ledgers, as well as delivering the share certificates.
- Completing corporate matters including acquisitions and amalgamations.
- Regulatory changes and updating the offering memorandum, subscription agreement, exemption forms and certificates and any other requirements of matters of compliance.
- Operational matters such as investing in mortgage portfolios and lending on mortgages secured against residential and commercial real estate.
- Underwriting simple and complex mortgage loans taking into consideration the lending parameters of the MIC and the needs of the borrower balanced between their ability to pay and the collateral available to secure against.
- Putting together the deal terms of co-lending arrangements and drafting inter-lender agreements in a syndication or prioritized lending consortium.
- Closing your mortgage loan transactions, including drafting the required security documents, completing title and off title searches, and advising on any further inquiries on the borrowers, guarantors and collateral.
- Demanding payment, collecting arrears, enforcing the mortgages and any remedies available under the security documents and Mortgages Act, including power of sales and foreclosures.
February 11, 2020
Often private lenders will receive a brief term sheet with an email introduction from a mortgage broker or agent trying to place a mortgage deal. Included in this email package may be an appraisal ...Read Post
October 25, 2019
The Mortgage Brokerages, Lenders and Administrators Act, 2006, requires that a mortgage lender hold a brokerage license in Ontario. And that a person or entity is a mortgage lender in Ontario when ...Read Post
March 30, 2018
As of July 1, 2018, the Financial Services Commission of Ontario (FSCO) will begin enforcing the changes to the O. Regulation 188/08 Mortgage Brokerages Standards of Practice under the Mortgage ...Read Post
September 20, 2017
The Question being asked is a brother or sister of a shareholder of a mortgage investment corporation (MIC) a specified shareholder (To qualify as a MIC for purposes of the Act, a corporation must, ...Read Post
July 25, 2017The Quick and Simple is that Yes, withholding taxes (usually 25% of gross amount unless subject to a tax treaty with the resident country of the payee) do apply on Dividends paid out by a Mortgage ...Read Post
July 7, 2017
Mortgage Investment Corporations (“MICs”) are on the rise in Canada. With many of these MICs the founders and managers are confused over what regulators may or may not govern certain aspects of ...Read Post
May 4, 2017
What do you do when your mortgage lender now has to pay a higher interest rate to their own lender on the money they loaned to you?
Home Trust in crisis!
“Home Trust would be required to pay a ...Read Post
May 13, 2016
The answer to this question is constantly evolving, with new and conflicting case law addressing specific facts released almost yearly. The old adage of being able to redeem your mortgage (payout ...Read Post
January 13, 2015
Annually a MIC that issues its shares through a prospectus and registration exemption under securities law and regulations (e.g. not publicly traded companies), will be responsible for providing ...Read Post
December 23, 2014
Management of the MIC must be vigilant and selective with whom they lend to, and investors can inquire about whether the MIC in question will allow investments within various percentage brackets ...Read Post
December 23, 2014
A “Trade” (i.e. selling shares to investors in this case) triggers the “Registration” requirement, even if the trade is not a “distribution”. Just because there is not a prospectus ...Read Post
December 23, 2014
The MIC itself will not pay income tax so long as the profits are flowed through to the shareholders and taxed in their hands. This is advantageous to an investor who has purchased MIC shares through ...Read Post
January 28, 2014
TYPE OF ENTITY FOR A MORTGAGE INVESTMENT CORPORATION
- A Canadian Corporation throughout the taxation year where its business only undertakes to invest its funds, and thereafter qualifies as a MIC, ...
August 14, 2013
With significant potential for favourable rates of return and previously instituted tax exemptions, Canadian Mortgage Investment Corporations (MIC’s) are increasingly becoming recognized as a ...Read Post
September 12, 2012
Can a lender charge a mortgage pre-payment penalty under Power of Sale proceedings or once the mortgage term has matured, regardless if it is an Open or Closed Mortgage?
Under section 17 of the Mortgages Act, and pursuant to relevant case law the answer is “Yes” the lender can. Subject to the wording in the original mortgage commitment/agreement, you will often ...Read Post
August 23, 2012
For purposes below referring to a “house” includes a condo as well. Did you know that CRA will consider you a “Builder” if:
1) You are an individual or corporation;
- And you own ...