Lender Spotlight has different types of lenders. Here are their definitions.

Alt B

Alt B is a lender with offerings that have non-defined pricing and will charge a lender fee. They may pay a commission for their program or a broker will need to charge a fee in order to be compensated for the file.

MIC/Private

A private lender is a person or business that loans money to someone who may otherwise not be approved the conventional way, typically due to income or credit deficiencies.

A Mortgage Investment Corporation (MIC) provides a way to invest in the real estate market, mitigating the time and risk of investing in individual mortgages. Investors pool their money by buying shares in a MIC, creating an alternative fixed-income investment. MICs are special companies created by virtue of Section 130.1 of the Income Tax Act, a federal statute, to enable investors to invest in a pool of mortgages. As a Mortgage Investment Corporation they also borrow from a bank or other lender, employing both the shareholders’ capital and loan proceeds to fund its mortgage portfolio. The pool of mortgages is continuously managed, with newly invested share capital, and the proceeds of repaid and discharged mortgages, being utilized to fund new mortgages.

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