FAQ

HOW IS A MIC REGULATED?

FIRST ISLAND'S MIC investment policies are governed by the following, as required under the Income Tax Act:

  • Investing MIC funds in First mortgages and not owning, managing or developing any property.
  • Distributing 100% of the net income to investors in the form of dividends; dividends are tax deductible for MICs.
  • Maintaining certain debt-to-equity ratios for liquidity protection.
  • Accepting property as security which is located in Canada and lending in BC and AB only.
  • Investing in both residential and commercial mortgages with at least 50% allocated for residential property.
  • Investing any temporary surplus of funds at a CDIC insured institution.

HOW DOES A MIC REMAIN CONSISTENT WITH INCOME TAX REGULATIONS?

FIRST ISLAND'S investment policies are consistent with the Income Tax regulations. We have defined our MIC policies as:

  • Containing only first mortgages registered on real property.
  • Being RRSP and RRIF eligible through a no annual fee self-directed plan;
  • Only financing to a maximum of 75% of the appraised project value; (often times the ratio is much lower.)
  • Not borrowing any funds to leverage the mortgage investments;
  • Securing mortgages for Alberta and British Columbia based properties.

HOW OFTEN CAN I EXPECT TO RECEIVE DIVIDENDS?

We pay dividends quarterly, within 7 business days following the quarter end.

  • November 1 to January 31
  • February 1 to April 30
  • May 1 to July 31
  • August 1 to October 31 

HOW ARE MY DIVIDENDS TREATED FOR TAX PURPOSES?

Dividends are treated as Interest Income as under the Income Tax Act MIC's receive special status. A T5 is issued on a calendar year basis.

IS MY INVESTMENT GUARANTEED?

Although there are no guarantees with this particular type of investment, your investment is protected in a number of ways as outlined in our Investor Section. Additionally, rates of return are determined entirely by the yield of the fund. As outlined in our Investor section, we go to great lengths to manage risk; our successful track record is evidence of our experienced ability to manage our fund.

WHAT FEES and/OR CHARGES WILL I PAY?

FIRST ISLAND does not charge for processing your redemption, issuing replacement share certificates or changing the registered owner of the shares. In fact, there are no fees associated with your transactions. In addition, we pay the annual administration fee for registered accounts, (RRSP, RRIF and TFSA accounts).

HOW DOES FIRST ISLAND DIFFER FROM OTHER MORTGAGE INVESTMENT COMPANIES?

One of the ways we differentiate ourselves in the marketplace is in our conservative lending guidelines. We believe that risk equals return. Our returns are conservative and that is because we prefer not to take unnecessary risks with our investment portfolio - your hard earned money. Our investment yields are above average, stable and yet conservative, derived solely from registered FIRST mortgages held over a diverse portfolio. In fact, First Island's owners also have significant monies invested in the MIC, further endorsing the confidence we all have in our proven formula of success. 

Get in Touch

First Island Financial Services Ltd.
Suite 101, 727 Fisgard Street,
Victoria, BC V8W 1R8

P: (250) 388-5441
F: (250) 361-9160
TF: 1-800-699-6336
E: first@firstisland.com

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