Mortgage Company of Canada’s objective is to focus on investing primarily in a portfolio of conventional first and second mortgage loans that generate income to allow Mortgage Company of Canada to pay monthly dividends to its shareholders.
In order to achieve this objective while mitigating the portfolio’s overall exposure to risk, Mortgage Company of Canada’s investment activities are governed by a strict set of underwriting criteria based on a credit policy framework established by the Board of Directors.
Mortgage Company of Canada’s mortgage portfolio at a glance:
- The portfolio is diversified amongst over 571 mortgages with a mix of investment types.
- Management continually monitors concentration risk, with no one loan exceeding $1,750,000 million of the total portfolio.
- The MIC invests in a number of different communities primarily in Toronto and the Greater Toronto Area, providing geographic diversification with limited exposure in the more speculative markets.
- The portfolio is composed of a mix of first and second residential mortgages. In 2018, the portfolio has experienced an average weighting of 64% first residential mortgages and 36% second residential mortgages in terms of dollars funded.
- Based on conservative third-party appraisals obtained at the time of funding, the Loan-to-Value (“LTV”) ratio of the portfolio is approximately 68%.
- Mortgage Company of Canada is invested in a number of different communities, providing geographic diversification with limited exposure in the more speculative markets. The balanced markets we invest in have not experienced significant upswings and should avoid the rapid declines that often follow.
- In 2018 Mortgage Company of Canada’s average loan size is approximately $270,000, as compared with other mortgage investment corporations, which average in the millions.
- Mortgage Company of Canada typically makes investments with terms of 12 months, with the average term to maturity within the portfolio historically being approximately 5.4 months, providing a high level of liquidity to the mortgage portfolio.