Mortgage Loan (Amber MIC) FAQ
Amber MIC
The process includes:
- Booking a meeting with a loan manager
- Filling out the application
- Submitting an appraisal report
- Credit check
- Providing supporting documents (e.g. property tax, repayment plan)
Focus is on collateral & repayment ability.
- Credit score: 600+
- Loan amount: $100,000 to $15,000,000 CAD
- Property location: Greater Toronto Area or Greater Vancouver Area
- Property types: Residential (condos, townhouses, houses) & Commercial (warehouses, offices, shops, malls, land, farms, multi-family, etc.)
- Borrower status: Canadian citizens, PRs, or tax residents
- For individuals: ID, credit report, tax returns, property tax bill
- For businesses: business registration, tax filings, property tax bill
Pre-approval is given after submitting required docs.
Faster than traditional banks—usually 1 to 2 weeks from application to funding.
Based on the market value of the collateral. Max loan is generally up to 75% of property value. Borrower’s repayment ability also affects final loan size.
Short-term—between 3 months and 1 year, depending on borrower-lender agreement.
Details include: loan amount, interest rate, term, fees, default terms & property info. These affect total cost & borrower responsibilities.
Usually yes, but there may be prepayment penalties. Check your loan agreement or ask your loan manager.
Flexible. Options include:
- Monthly interest payments
- Interest deducted upfront
- Lump sum repayment at maturity
- Repayment terms are agreed upon between both sides.
Amber MIC may offer extensions but might charge penalty interest or fees. If non-payment continues, the property may be sold to recover the loan.
Renewals depend on repayment history and contract terms. Speak with your Amber MIC loan manager for details.
Via PAD (Pre-Authorized Debit)—monthly interest is automatically withdrawn from your account.
MIC Industry
An MIC loan is provided by a Mortgage Investment Corporation (MIC). It serves borrowers who can’t secure loans through traditional banks. MICs earn interest by lending to multiple borrowers, and investors share in this income through their investments in the MIC.
MIC loans are typically short-term and aimed at borrowers with lower credit scores or less liquid assets. Bank loans, by contrast, require higher credit scores and stricter qualifications but usually offer lower interest rates.
MIC loans are for people who can’t get loans from banks—such as self-employed individuals, those with low credit scores, or unique financial situations. Examples include property developers, business owners needing short-term funding, or individuals rejected by banks.
They can be used for real estate investments, renovations, business needs, etc. There are fewer restrictions on use—especially when banks won’t fund certain risks.
Rates are higher than bank loans due to increased risk—typically between 9% to 13%, depending on borrower qualifications, loan type & property value.
Common fees include processing, appraisal, legal fees, and interest. These vary depending on loan terms and collateral.
A third-party appraisal company assesses the property value, which directly affects loan amount & rate, based on market conditions & property characteristics.
A lawyer ensures everything’s legal—reviews contracts, handles title, manages funds, etc. This protects both borrower & lender and ensures a secure process.
This is standard in complex mortgage deals. Since the lender provides the funds & takes risk, their legal costs are usually paid by the borrower.
Yes—MIC loans are common in commercial real estate & investment properties. They’re a good option when banks are unwilling to fund.
Approval is based more on the property value, repayment ability, and loan purpose, rather than credit score. Great for borrowers with good collateral but weaker credit.
The MIC can legally sell the property to recover the loan, interest, and fees. This is how MICs offer larger loans with more flexible credit requirements.
Yes—they fall under Section 130.1 of the Income Tax Act and must follow both federal and provincial financial & tax rules.
