Can private mortgage investments beat your portfolio?
Mortgage investment entities (MIEs) provide an alternative for borrowers who struggle to secure traditional mortgages. They have shown promising returns, averaging over 9% in recent years, but come with risks related to liquidity and redemption. Investors should weigh the potential for high returns against the challenges of accessing their funds when needed.
- ▪MIEs are funds that lend money to borrowers who cannot qualify for traditional mortgages.
- ▪Returns from MIEs averaged 9.2% in 2024 and 7.7% in 2025, with residential-focused MIEs exceeding 10%.
- ▪Investors may face difficulties accessing their capital, as some MIEs have restricted redemptions.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountYou may have heard of mortgage investment entities (MIEs), which are funds that collect money from investors and lend it out as mortgages. Borrowers who cannot qualify for a mortgage with a bank or credit union because of spotty credit histories typically turn to MIEs instead, paying higher interest rates in exchange for easier qualification.MIEs have delivered weighted average returns of 9.2 per cent and 7.7 per cent in 2024 and 2025, respectively, according to WOWA Data Lab analysis. That’s compelling for a period when real estate markets were broadly sluggish. But do they warrant a place in your portfolio?What exactly is an MIE?An MIE can be structured as a corporation, trust or partnership.
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