Early-40s investor plans 2028 launch with $5,000 minimum entry point and 10% returns
After nearly two decades building a real estate portfolio in Ontario, Caine is pivoting from property ownership to mortgage lending. His as yet unnamed Mortgage Investment Corporation (MIC), which is expected to launch in about 36 months, is a response to what he perceives as a serious void in the Canadian lending market: a lack of financing for borrowers in second and third-tier Ontario markets that are usually the least favoured of the large lenders.
"Most lenders are concentrated in Southern Ontario and haven't lived and breathed the Canadian North," says Caine, who before purchasing his first property 20 years ago, was a student at a theatre school. "They prefer larger deals in populated areas. Deals further north might not get them interested because the returns might look too small. But as a new MIC, I recognize this as an excellent niche."
The areas that Caine is after—Sudbury, North Bay, Huntsville alike—are not only the regions he has invested in directly over the years but also ones he knows well. "I own property in the north. I know the weather, the mentality and the behavior of people, and I am certain that I will lend where others are not comfortable," he says.
Mortgage Investment Corporations have become popular among Canadian investors who want to invest in non-traditional fixed-income products. Given that TD's Cashable GIC is currently at 1.75% and CIBC’s at 2.70% as of early 2026, Caine's planned 10% return is quite remarkable. The minimum investment of $5,000 is aimed at making it easier for people to participate in the fund, yet Caine mentions that the majority of the investors he has dealt with usually invest around $100,000.
The setup is simple: investors put in money for one year and receives a cheque every month, or reinvest their dividends to earn more. After one year, they are allowed to continue or withdraw their capital and cash out. "Cashflow is king," Caine says. "Everyone wants to lower their debts, increase their income and spend more time with family. If I can provide the income through my fund, then my investors may have more time with their families."
What makes the offer attractive is not only the returns. For instance, if one were to own direct real estate, one would have to manage the property, which includes the maintenance, dealing with tenants and vacancies, whereas mortgage investing involves mostly paperwork. "Without the lending industry, real estate cannot be purchased," Caine observes. "Everything comes from knowing whether you have the budget for the property or not."
However, Caine is very much aware of the dangers. Prospective investors will be assessed to see if they qualify, and those considered ineligible will be rejected. His main rule is: only invest what you can completely lose without it affecting you. The MIC will be the owner of the properties as collateral, and Caine intends to keep a good amount of cash on hand - lessons he has learned during his 20 years in real estate. "I have gone through some losses," he says. "I learned that there should be a healthy cash reserve and that one should not over-leverage."
Presently, Caine is in the process of selling his real estate properties to raise capital and he is also building his investor list. Once the fund is formed, there will be a team comprising lawyers, mortgage brokers, and administrators to handle the operations. He will be registered with the Financial Services Regulatory Authority of Ontario before opening subscriptions. It should be noted that Caine will also be putting money into the fund and he has a structure which ensures that investors get paid before he does.
The timing might seem off. The real estate market in Ontario has been pretty dull with fewer transactions. Nevertheless, Caine is not thinking in terms of quarters but decades. "The market is very bad at the moment. There is hardly any movement. However, it might be different when our fund is launched. Even so, my fund is not going anywhere. We should not be looking at one or two years, but several decades at a time."
His goal is not just to the north of Ontario. Although the MIC will initially be able to operate only in the said province, Caine is thinking of expanding nationally and perhaps internationally some day. He is aiming for $500 million in assets under management in ten years. He would, therefore, be able to realize his other dream which is to set up a foundation that supports education, arts and culture, and the communities that have contributed to his portfolio.
Caine is currently looking for his first 20 investors only. His idea is: start increasing your monthly income through passive activities, without the trouble of property ownership, and at the same time, help lending in those communities where large institutions are absent. In a situation where traditional saving methods offer only minimal returns and real estate ownership is getting more and more out of the reach of the average Canadians, that offer may get a warm welcome.
The fund is aimed at young families and are looking for an extra source of stable income that will enable them to travel and achieve financial security, investors who want to diversify their portfolios beyond equities, bonds and anybody who is building a retirement nest egg. Although international investors are welcome, the focus is still primarily on Ontario mortgages.
It will take a few years before we can say whether Caine's strategy up north was the right one or if he was overly optimistic. But the source of his conviction is something that the majority of Bay Street analysts do not have and that is firsthand experience of markets where the opportunity and risk cannot be quantified through algorithms but have to be understood in terms of how communities survive when they have harsh winters for six months and economic cycles follow the pattern of resource extraction.
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Company Name: Caine MIC
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City: Toronto
Country: Canada
Website: https://cainechow.ca/