One of the key things investors need to understand is how returns from a mortgage investment corporation are taxed. Unlike regular corporations, a mortgage investment corporation in Ontario or elsewhere in Canada does not pay income tax.<\/p>\n
Instead, all profits are passed directly to shareholders. Investors then pay tax on the income they receive, which is treated as interest income. This means it is taxed at the investor\u00e2\u20ac\u2122s marginal tax rate, just like other forms of passive income.<\/p>\n
The good news is that with Hosper, investors can hold their MIC shares inside registered plans such as a TFSA<\/a>, RRSP<\/a>, or RESP contribution account. This flexibility makes mortgage investment corporations in Ontario and across Canada a powerful tool for investors looking to balance growth, income, and tax efficiency.<\/p>\n<\/div>MICs vs. Other Fixed Income Options<\/h2><\/div>