What Risks Are Associated With Investing In A MIC?


Although real estate investing is considered one of the safest investments, risks still exist in mortgage lending. All property investments are subject to elements of risk. Property value is affected by general economic conditions, local real estate markets, the attractiveness of the property to tenants, competition from other available properties and other factors. While independent appraisals are required before the corporation may make any mortgage investment, the appraised values provided therein, even where reported on an “as is” basis, are not necessarily always reflective of the market value of the underlying property, which may fluctuate.

The MICs income and funds available for distribution to security holders would be adversely affected if a significant number of borrowers were unable to pay their obligations.  Upon default by a borrower, Westboro MIC may experience delays in enforcing its rights as a lender and could incur costs in protecting its investment.

To mitigate these risks, the experienced team of Underwriters at Westboro MIC carefully review every application to reduce the possibility of non-performing loans. Furthermore, strict loan to value guidelines ensure enough equity is available to recover outstanding loan balances in case of foreclosure.