Why More Investors Are Leaving Rental Properties for MICs in 2025

Real estate has long been a cornerstone of Canadian wealth building—but the way investors engage with it is rapidly changing. In 2025, high interest rates, tighter tenancy laws, and shrinking margins have made traditional property investing less attractive. Meanwhile, Mortgage Investment Corporations (MICs) are emerging as a smart, passive, and tax-efficient alternative. This shift is particularly visible in British Columbia, where investors are reconsidering the time, effort, and capital required to manage rental real estate. MICs offer the same real estate exposure—without the burdens of ownership—and often with stronger returns. Why MICs Are Replacing Bricks and Mortar Here are five compelling reasons why more Canadian investors are turning to MICs this year: 1. Passive Income with Strong Yields MICs typically generate targeted annual returns of 8–11% , distributed monthly or quarterly. These returns come from interest paid on privately issued mortgages. Unlike rental inco...