Tapping into Home Equity to Pay-Off Higher Interest-Bearing Debt


Mortgage Investment Corporations (MIC) can help home owners tap into the equity they’ve built up in their home to pay off higher interest-bearing debt. One of the most popular ways to access home equity is with a home equity loan. More and more higher quality Canadian homeowners are turning to Mortgage Company of Canada to refinance because of the convenience, flexibility, and quick turnaround time.

Accessing Home Equity to Pay-Off High Interest-Bearing Debt

A home equity loan is an additional loan taken out against a property. Just like the first mortgage, homeowners make monthly payments on the home equity loan.

With a home equity loan, property owners can receive up to 80% of the home’s appraised value and receive a one-time, lump sum payment, with an interest rate that is either fixed or variable. If the home equity loan is taken out as a second mortgage, the interest rate is often higher than the first mortgage; however, it is still considerably lower than higher-interest bearing debt you would encounter with a credit card, which can come with rates as high as 20% or more.

Why would homeowners look to Mortgage Company of Canada for a home equity loan and not big banks? Banks have introduced a large number of strict lending rules, which means an increasing number of property owners are having their home equity loan turned down.

Because MICs are not governed by the same federal rules as banks, Mortgage Company of Canada can provide loans uniquely tailored to their client’s individual needs. Moreover, because higher quality borrowers are being rejected by banks, Mortgage Company of Canada can be more selective about who it lends to.

Mortgage Company of Canada: Helping You Invest in High-Yield, Private Mortgages

MICs have become a popular destination for homeowners looking to access the equity they’ve built up in their home to pay off higher interest-bearing debt. Thanks to tougher lending rules that are expected to become even stricter, higher quality borrowers are turning to Mortgage Company of Canada. Thanks to our stringent due diligence process and diversified portfolio of mortgages secured by residential real estate, we have been able to provide investors with an above average yield of 9.86%, with distributions paid monthly

Mortgage Company of Canada has a diversified pool of more than 700 mortgages with a value of $231 million. Thanks to the healthy real estate market in the Greater Toronto Area (GTA) and Golden Horseshoe, our portfolio has grown by 83% over the last 12-months.1

The vast majority of those mortgages (84%) are located in the GTA; 76% of those are made up of first mortgages. On top of that, 56% of our mortgages secured by residential real estate mature in six months—100% of them mature in less than one year.

In addition to having an experienced management team, Mortgage Company of Canada is overseen by an independent majority board, something unique in the industry. Combined, we have an extensive understanding in real estate, market risk, and the public market.

Had you invested $100,000 with Mortgage Company of Canada in 2009, in November 2018, that investment would be worth $260,783.

To find out how you can become an accredited investor with Mortgage Company of Canada, visit our web site or contact Mortgage Company of Canada at 1- 866-318-7222.

1. “November Newsletter,” Mortgage Company of Canada web site, last accessed January 3, 2019; https://www.mcoci.com/wp-content/uploads/2018/12/Mortgage-Company-of-Canada-November-Newsletter.pdf.