Toronto MIC looks at further growth with strong alternative demand

Toronto MIC looks at further growth with strong alternative demand

Toronto MIC looks at further growth with strong alternative demand

With assets under management now exceeding $250 million, a Toronto-based mortgage investment corporation has stated that it is looking forward to further portfolio expansion amid strong demand for alternative mortgage financing.

Earlier this week, Mortgage Company of Canada Inc. (MCOCI) announced that the firm’s pace of growth is such that it only needed two years – from the $100 million under management in May 2017 – to boost its portfolio by 150%.

For perspective, the company was inaugurated less than a decade ago in November 2013, primarily investing in single-family residential mortgages in the Greater Toronto Area.

MCOCI added that it reached these landmarks without the help of mortgage pools, noting that every part of the portfolio (currently at around 2,900 mortgages) was originated and underwritten by management.

“The growth of Mortgage Company of Canada has been exceptional,” founder and CEO Raj Babber said. “Looking forward, we are confident that we can continue expanding our portfolio at a swift pace.”

“Housing market fundamentals in the Greater Toronto Area are strong; demand for alternative mortgage financing from credit-worthy homebuyers is robust; and our credit line with Toronto-Dominion Bank and Royal Bank of Canada is a competitive advantage that facilitates our growth.

In recent quarters, the GTA – and Ontario itself – has seen the Big Five banks’ market share of its mortgages fall steadily, largely due to the B-20-mandated stress tests, according to a Teranet report earlier this year.

The major institutions represented 72.6% of the Ontario market’s new mortgages last year, compared to 75.3% in 2017 and 73.7% in 2016.

On the other hand, non-major bank providers – alternative institutions, private lenders, and credit unions, in particular – enjoyed approximately 0.8% annual increases in their market shares in 2018.

The growing popularity of non-major bank options was especially apparent In Toronto, where private lenders held an 8.9% share last year.