INVESTMENT OBJECTIVE
The Mortgage Company of Canada (“MCC”) is a mortgage investment corporation whose objective is to provide investors with an attractive risk-adjusted return by primarily investing in mortgages of single family homes in the Greater Toronto Area. Our experienced management team employs a focused lending strategy, follows rigorous underwriting analysis and leverages its third-party brokerage relationships as well as its affiliated mortgage brokerage for deal flow. MCC’s board of directors (“Board of Directors”) comprises a majority of independent members who provide corporate governance and oversight. The Board of Directors ensures that the corporate and financial objectives of MCC are pursued on behalf of its investors.
HISTORICAL RETURNS2
A $100,000 investment in 2009would be worth $188,115 today
PORTFOLIO SUMMARY3
1) Monthly distributions are capped at 9%. Bonuses reflecting yields generated in excess of 9% are paid out quarterly as per the MCC Offering Memorandum
2) Reflects yields earned by the predecessor company prior to the incorporation of the Mortgage Company of Canada on August 8, 2013 and those earned by MCC thereafter
3) Weighted by book value of loan
MARKET OUTLOOK
On August 25, 2015 Lawrence Schembri, Deputy Govenor of the Bank of Canada, made a presentation to the Canadian Association for Business Economics on the long-term evolution of house prices. The following is a summary of his remarks:
- Real house prices have been rising relative to income in Canada for the past 20 years
- Demographic forces, notably migration and urbanization, in concert with improving credit conditions through lower global real long-term interest rates and financial liberalization and innovation have served to drive demand
- The constraints imposed by geography and regulation have decreased housing supply elasticity, especially in urban areas.
- This reduced supply elasticity has interacted with demand shifts toward more urbanization which has served to push up house prices in major cities
MANAGEMENT TEAM
Our management team has demonstrated an excellent track record over their combined 40 years of lending experience. Management has approximately $4 million invested in MCC on the same terms as our investors, insuring that our interests are aligned.
RAJ BABBER – Founder, President & Chief Executive Officer and Director
- 15 years of experience in commercial and residential lending
- Founder of CanadaLend.com, one of the largest volume independent mortgage brokering houses in Canada
SANJAY KAITH – Chief Operating Officer
- Over 10 years of experience in mortgage brokering, finance and lending in the small and medium business sector
- Experience and expertise in the residential housing market
GREG GOUTIS CPA, CMA – Chief Financial Officer and Director
- Over 14 years of experience in the construction and real estate industries
- Formally, Vice President, Operations and Chief Financial Officer at The Royalton Retirement Residences
MAJORITY INDEPENDENT BOARD OF DIRECTORS
MCC is committed to strong corporate governance practices. Accordingly, we have appointed three wellrespected business and finance professionals, with public company experience, as independent
members to our Board of Directors.
DANIEL DRIMMER
- Over 19 years of experience in the multi-family residential and commercial real estate sectors in Canada and the United States
- Chairman of the Board of True North Apartment Real Estate Investment Trust (TN.UN:TSX) and True North Commercial Real Estate Investment Trust (TNT.UN:TSX), and Chief Executive Officer of Starlight Investments Ltd.
TAMMY OLDENBURG
- Over 17 years of experience within the finance and real estate sectors
- Chief Financial Officer at Credit Suisse Canada
- Former Vice President and Chief Financial Officer of MCAN Mortgage Corporation (MKP:TSX)
GLEN SILVESTRI
- Over 15 years of experience in the financial sector
- Partner at Imperial Capital Group, a leading mid-market private equity player
- Former Vice President of Teachers’ Private Capital, the private equity arm of Ontario Teachers’ Pension Plan
- Former member of the Board of Equity Financial Holdings (EQI:TSX)
* These materials are not to be distributed, reproduced or communicated to a third party without the express written consent of the Mortgage Company of Canada. These materials are for informational purposes only and do not constitute an offer to sell or a solicitation to buy securities. Past results are not indicative of future performance.
4) Source: The Long-Term Evolution of House Prices: An International Perspective, August 25, 2015. Lawrence Schembri, Deputy Govenor of the Bank of Canada.
