Record Setting Job Numbers Show Why Toronto Is the Fastest Growing City in North America
Canada Creates 28,000 Jobs as Unemployment Hits Record Low
The Canadian economy remains robust, with the unemployment rate falling to 5.4%, its lowest point in the modern era. According to Statistics Canada, the Canadian economy added almost 28,000 jobs in May and the average hourly wages also inched up. Over the last 12-months, employment grew by 453,000, with the majority of the gains coming from full-time work (299,000).1
The area that experienced the largest job gains was Ontario, where 21,000 jobs were added. The unemployment rate fell by 0.8% to 5.2%. Over the last year, 222,000 jobs were created in Ontario.
On the local level, Toronto’s economy is outpacing the national rate. In the last 12 months, Toronto welcomed 77,000 new residents. Phoenix, Arizona came a distant second at just 25,000.2 Growth in the Greater Toronto Area is equally as impressive. The GTA experienced the second-fastest population growth at 125,300. Metropolitan Dallas-Fort Worth was first with 131,800 people.
All of this helps explain why Toronto is the fastest-growing city in the U.S. and Canada and why the demand for housing in the region is sizzling.
Unfortunately, it is getting more and more difficult for first-time homebuyers to get onto the property ladder. Not only is competition to buy a home in Toronto fierce, stricter lending rules have made is extremely challenging for even well-qualified borrowers to secure a mortgage.
Potential homebuyers rejected by the big banks have learned how convenient, flexible, and easy it is to use a Mortgage Investment Corporations (MIC) like Mortgage Company of Canada.
Because a Mortgage Company of Canada is a private lender, it does not need to follow the stringent and prohibitive federally regulated mortgage rules. Which means we can help well-qualified borrowers secure a mortgage and get onto the property ladder.
Mortgage Company of Canada: Helping You Invest in High-Yield, Private Mortgages
The Canadian economy remains strong, having added approximately 28,000 jobs in May. Unemployment is also at record lows of 5.4%. Even on a local level, the GTA has one of the strongest economies in the nation. which helps explain why it is the fastest growing city and second fastest growing metropolitan area in North America. Because of these factors, real estate prices remain strong and demand is outstripping supply. As a result, a record number of Canadian homebuyers rejected by traditional lenders are turning to Mortgage Company of Canada to secure loans.
Because well-qualified borrowers are being rejected by the big banks, Mortgage Company of Canada can be more selective with who it lends to. This has allowed Mortgage Company of Canada to build up a diversified pool of primarily first mortgages, secured by residential real estate in the GTA and Golden Horseshoe.
It’s not just homebuyers who benefit from Mortgage Company of Canada. Because of our careful lending process, we have been able to provide qualified investors with above-average yields.
In April 2019, investors in Mortgage Company of Canada realized a tailing 12-month yield of 9.65%, with distributions paid monthly. Our annual target yield is 9.25%. Had you invested $100,000 with Mortgage Company of Canada in 2009, in April 2019, your equity would be worth $271,447.3
In April, our total mortgage portfolio was valued at $255 million Since the start of 2019, out mortgage portfolio has increased almost 10%; in April alone, we funded an additional $20 million in mortgages.
Over the last 12 months, our mortgage portfolio has increased by 63%; 81% of our 781 residential mortgages are located in the GTA, 11% are in the Golden Horseshoe, 5% are in major urban centers, and 3% are in Ottawa.
The vast majority of our portfolio (76%) is made up of first mortgages; the remainder (24%) is made up of second and third mortgages.
Overall, 58% of our mortgages mature in six months; 100% matures in less than one year.
Part of our ongoing success can be attributed to our seasoned management team, which has a combined 45+ years of experience in real estate, public market, and risk market, and is one of the most knowledgeable in the MIC industry.
Moreover, Mortgage Company of Canada is unique in the MIC industry in that it is overseen by a majority independent Board. It also follows a stringent underwriting analysis and leverages its third-party mortgage brokerage relationships, as well as affiliated mortgage brokerage for quality mortgage originations.
Finally, our management team has invested approximately $11.0 million in Mortgage Company of Canada, on the same terms as our investors, ensuring our investments are aligned.
To find out more about Mortgage Company of Canada, visit our web site or contact us at 1-866-318-7222.
1. “Labour Force Survey May 2019,” Statistics Canada web site, June 7, 2019; https://www150.statcan.gc.ca/n1/daily-quotidien/190607/dq190607a-eng.htm.
2. “WOW! Toronto Was the Second Fastest Growing Metropolitan Area and the Top Growing City in All of the United States and Canada,” Ryerson University, May 31, 2019; https://www.ryerson.ca/cur/Blog/blogentry35/.
3. “April Newsletter,” Mortgage Company of Canada web site, last accessed June 13, 2019; https://www.mcoci.com/wp-content/uploads/2019/05/Mortgage-Company-of-Canada%E2%80%93APRIL-2019-Newsletter.pdf.