Canada’s real estate market is one of the strongest in the world, but Canada’s mortgage growth has fallen to its lowest level in nearly 20-years. Why? Stricter lending rules, higher interest rates, and areas with high real estate prices, like the Greater Toronto Area and Golden Horseshoe, has made it very difficult to secure a mortgage from a bank.
As a result, a growing number Canadian homebuyers are turning to private lenders, including Mortgage Investment Corporations, or MICs. Case in point, the market share for private lenders in the GTA has increased by 50% since 2017 and now accounts for nearly 10% of all borrowers.
The fact is, MICs allow Canadians to invest in the country’s booming housing market through real estate backed mortgages.
Homebuyers Underserved by Banks Turning to MICs
As a MIC, Mortgage Company of Canada pools share holder capital and selects residential mortgages to purchase and fund with the new capital. The MIC earns income from those mortgages on interest charges and general fees.
The biggest appeal for investors when it comes to MICs is the yield, which far outstrips fixed income investments like GICs and government bonds. Legally, a MIC must distribute all of its annual net income, before taxes, to shareholders in the form of monthly dividends.
Because of the way a MIC is structured, it is not uncommon for investors to realize annual returns of nine percent or higher.
Mortgage Company of Canada: Helping You Invest in High-Yield, Private Mortgages
nu*!23456!@#$%^00!At Mortgage Company of Canada, we fund mortgages that traditional lenders may or may not fund. Because of tighter lending rules and the increased cost of borrowing, Canadians who would have had no trouble finding a mortgage, are being turned away by traditional lenders. Mortgage Company of Canada is helping bridge the gap, providing financing to higher quality borrowers, and above average yield to investors.
Mortgage Company of Canada is a MIC that provides investors with a risk-adjusted return by investing in mortgages primarily secured by single family homes in the Greater Toronto Area and Golden Horseshoe.
Thanks to our experienced management team, independent board of directors, and investment, brokering, and borrowing practices, we are able provide financing opportunities specifically tailored to our client’s needs.
The vast majority of our mortgages are located in the GTA and three quarters of our portfolio is made up of first mortgages. Because of our strong cash position, we are able to provide funding within 48 hours.
Where most MICs are broadly invested in both commercial and residential loans spread out over the entire province, Mortgage Company of Canada is focused on residential mortgages in the GTA; the one area of the country faced with the smallest supply and highest demand.
Because of its strong track record, Mortgage Company of Canada has been able to provide investors with a stellar high yield annual dividend of 9.86%.1
To find out how you can diversify your investment portfolio with Canadian real estate backed mortgages, visit our web site or contact Mortgage Company of Canada at 1- 866-318-7222.
1. “Mortgage Company of Canada September Newsletter,” Mortgage Company of Canada web site, last accessed November 20, 2018; https://www.mcoci.com/wp-content/uploads/2018/10/Mortgage-Company-of-Canada-September-Newsletter.pdf.