INVESTMENT OBJECTIVE

The Mortgage Company of Canada (“MCC”) is a Mortgage Investment Corporation (“MIC”) 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 ensures efficient operations, follows rigorous underwriting guidelines and leverages MCC’s third-party brokerage relationships as well as its affiliated mortgage brokerage for deal flow. Our Board of Directors, composed of a majortity of independent members, provides corporate governance oversight ensuring that our objectives are pursued on behalf of our investors.

HISTORICAL RETURNS²

A $100,000 investment in 2009 would be worth $178,210 today

INVESTMENT STRATEGY

MCC largely invests in first and second mortgages to refinance single-family houses in the GTA. We prudently manage risk by:

• Focusing on residential communities in the GTA where demand exceeds supply
• Insulating against housing price drops by limiting loan-to-value (“LTV”) to 80% or less
  (current LTV of mortgage portfolio is 69.4%)
• Applying a discount to appraised values determined by third-party best-in-class appraisal
  companies
• Creating portfolio diversification by providing a high volume of small value loans
  (average value of loan in mortgage portfolio is $127,000)
• Investing in short-term loans with durations of one to two years

PORTFOLIO SUMMARY6

PORTFOLIO SUMMARY (CONT)

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

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 in various financial positions with MCAN Mortgage Corporation (MKP:TSX) (“MCAN”), Bank of Montreal and Ernst & Young
• Former Vice President and Chief Financial Officer of MCAN

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.

Newsletter January 2015