Mortgaging Your Future: The Ins And Outs Of Mortgage Investment Funds.

This article provides an overview of Mortgage Income Funds (MICs) as an alternative investment option for individuals seeking higher-yielding investments. MICs are investment funds that hold a pool of mortgages and pay out their yearly after-tax earnings to investors. The article emphasizes the need for careful investigation and comparison of different MICs before investing, as they have different investment mandates, strategies, and loan-to-equity rules. It also discusses the impact of the mortgage stress test on borrowers and how MICs can fill the gap for those who no longer qualify for traditional mortgages. The article offers guidance for investors considering MICs, highlighting various factors to consider when evaluating them. It emphasizes the importance of conducting thorough research and asking critical questions before investing in MICs. [Extracted from the article]