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Mortgage Broker News | 26 Jul 2013, 12:00 AM Agree 0
Those involved in MICs should pay close attention to property values – especially if they begin to go into decline, says one industry analyst, who believes investors may be misinterpreting market signals.
  • Dale Koeller | 26 Jul 2013, 10:56 AM Agree 0
    It is always wise advice for investors to do their research and fully understand the risk profile of the investment they are buying into. This advice applies to all investment types and classes. All MICs under securities regulations (which is the case in most provinces in Canada), must fully disclose their mortgage investment criteria. While I would agree that many MICs have significant investments in land development and construction, not all would be heavily invested in these categories. In addition, the risk profile in a portfolio is reflected not solely in the mortgage type, but its loan to value and the credit worthiness of the borrower. Investors should absolutely ask lots of questions of the MICs they are invested in, or considering investing in.
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