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 primarilyinvesting in mortgages of single family homes in the Greater Toronto Area. Our experiencedmanagement 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 2009would be worth $182,439 today

MARKET OUTLOOK

The GTA housing market continues to benefit from strong fundamentals, a trend that we believe will continue due to several factors, including:

  • The Echo Boomer3 cohort, which drove the rapid growth of the condominium market during the 2000s, is now expected to fuel demand for single family homes in the GTA as members are entering their “prime backyard hunting years”4
  • The Ontario Ministry of Municipal Affairs and Housing estimates that in-migration to the GTA will lead to a population of over 9 million people by 2031 and over 10 million a decade later5
  • Limited land available for development, as outlined in the Ontario Places to Grow Act, 2005, will make single family homes in areas with reliable transit increasingly attractive6

PORTFOLIO SUMMARY7

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) A child of a member of the post-World War 2 Baby Boom generation, born in the period extending approximately from the mid-1970s to the 1990s

4) Source: “Shifting Housing Supply on the ‘Island of Toronto’” Focus, April 2, 2015 http://www.bmonesbittburns.com/economics/focus/20150402/feature.pdf

5) Source: “Places to Grow – Growth Plan for the Great Golden Horseshoe, 2006 https://www.placestogrow.ca/content/ggh/2013-06-10-Growth-Plan-for-the-GGH-EN.pdf

6) Source: “Places to Grow Act, 2005” http://www.ontario.ca/laws/statute/05p13

7) Weighted by book value of loan.

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

As at March 31, 2015

9.30%

Trailing Twelve

Month Yield>

69.8%

Average LTV

280

Mortgages Outstanding

QUICK FACTS

Mortgages Under Mgmt . . . . .$34.5 MM

Average Loan Value . . . . . . . . . . .$123K

Average Term to Maturity. . . 6.1 months

Portfolio Composition:

Residential. . . . . . . . . . . . . . . . . .99%

Commercial . . . . . . . . . . . . . . . . . .1%

Investors:

Participating in DRIP. . . . . . . . .57.7%

Total number of investors . . . . . .163

MORE INFORMATION

To learn more about investing with
MCC, please call or email:

Raj Babber
President and CEO

E : raj.babber@mcoci.com

T : 905-886-5352 ext. 222

INVESTMENT TERMS

Target Investor Yield

  • 9% plus quarterly bonus
  • Distributions paid monthly

Dividend Reinvestment Plan

  • DRIP available

Redemptions

  • Locked in for 1 year, 90-day notice
    for redemption thereafter
  • No redemption fees

Management Fees

  • 0.5% annual base fee
  • Perfomance fee above minimum
    threshold return of 9.5%

Minimum Investment

  • $25,000

Deferred Income Plans

  • Eligible for RRSP, RRIF, RESP,
    TFSA

Auditor

Grant Thornton LLP

Legal Counsel

Cassels Brock & Blackwell LLP