TORONTO, July 4, 2017 /CNW/ - Mortgage Company of Canada Inc. (the "Company"), a fast-growing Toronto-based mortgage investment corporation, today announced that it has increased its line of credit with The Toronto-Dominion Bank (TD) from $25 million to $40 million. When drawn by the Company, the incremental funds will be employed to Mortgage Company of Canada to expand its residential mortgage investment portfolio in the Greater Toronto Area, where management continues to identify significant growth opportunities.
As of May 31, 2017, the Company earned an average return of 9.5% on its mortgage portfolio. The Company expects to generate significant incremental cash flow from the $15 million increase.
"This is the third increase to our credit line with TD since it was initiated in 2014," said Mr. Raj Babber, President & CEO of Mortgage Company of Canada. "We continue to benefit from strong mortgage demand in our target market, an established business model, proven management and a robust set of underwriting and administrative processes. The increased credit line recognizes the strength of this platform."
About Mortgage Company of Canada Inc.
Mortgage Company of Canada is a Toronto-based mortgage investment company that primarily invests in single family residential mortgages in the Greater Toronto Area. Mortgage Company of Canada's objective is to target a minimum annual yield of 9.0% by providing its shareholders with monthly dividends while preserving shareholders' capital by lending within conservative risk parameters.
Mortgage Company of Canada Inc. is a Mortgage Investment Corporation as defined in the Income Tax Act (Canada). For further information on Mortgage Company of Canada, please visit www.mcoci.com
This press release may contain "forward looking information" that is based on expectations, estimates and projections as of the date hereof. Such information involves risks and other factors that may cause actual results to be materially different.
SOURCE Mortgage Company of Canada Inc.
For further information: Raj Babber, Chairman, Chief Executive Officer & President, Mortgage Company of Canada, (866) 318-7222 ext. 222