Key Characteristics
Real Estate Secured – Investors enjoy a unique feature that traditional equity and fixed income markets do not enjoy – the secured nature of the underlying investments.
Professional Management – Investors benefit from over 100 years of collective real estate development, construction, underwriting and investment experience that is evident in the senior management team.
Market Niche – MCOCI specializes in lending to specific sectors of the mortgage market that have been historically under serviced by both private and institutional lenders, both in terms of loan type, size and geographic location, and specifically cookie cut single family homes.
Loan Loss History – MCOCI has funded in excess of $180 million in new mortgages, with a negligible loan loss history.
Concentration Risk – We continually monitor concentration risk to ensure no one loan exceeds 15% of the total portfolio.
Low Loan To Value Ratio – Investors benefit from a higher level of borrower equity in the assets we underwrite. Historically the loan to value ratio within the mortgage portfolio has not exceeded 70% and is a key measure of our success in mitigating loan losses.
Term to Maturity – Investors benefit from the fact we typically do not take long term positions, ie. in excess of 24 months. The average term to maturity has historically stood at approximately 6.7 months as of September 30, 2015. As a key statistic, the term to maturity provides a level of liquidity to the mortgage portfolio that would not otherwise exist if we were underwriting longer term mortgages.
Diversification – Investors enjoy the benefits of diversification within the portfolio by:
- A larger number of mortgages in the pool.
- A number of different types of mortgages.
- A number of different geographic locations in Ontario.
- A number of different borrowers.
- Mortgages fully secured by real estate as the MCOCI MIC is on Title.