Welcome to

STABILITY, CONSISTENCY & VISION

COMPANY PROFILE 

We are always looking for new investment horizons...

HRU Mortgage Investment Corporation was established in Toronto, Canada in July 2016, and is regulated by the Ontario Securities Commission. The primary investment objective is to make prudent and high-return investments in residential, commercial, construction mortgages and land. Financing is secured by real property located in the Greater Toronto Area to generate consistent and stable monthly income for both individual and group investors.

We are one of Canada's exclusive non-bank lenders, and manage a diversified mortgage portfolio in the Greater Toronto Area, the largest and most reliable housing market in Canada. We use conservative underwriting and strict guidelines to control and minimize risk. We provide quarterly investment statements and annual financial statements to keep investors well informed.

A typical loan in our portfolio has an interest rate of 7.5% to 10% per annum, a one year term, and monthly interest-only mortgage payments. The weighted average loan-to-value (LTV) ratio of our mortgage portfolio, at the time of underwriting each loan in our portfolio, may not exceed 75%.  Mortgage loan amounts are generally $50,000 to $2 million. To date, the largest single mortgage in our mortgage portfolio was $1.6 million. For loan amounts in excess of $500,000, however, we generally co-lend with a financial institution or private lender.

As a Mortgage Investment Corporation (MIC), we qualify for a special tax exempt status that is a powerful tool for investors: all earnings are distributed as dividends to shareholders, and are not subject to corporate income tax (payouts are treated as interest income for personal tax purposes).

To qualify and maintain this status as a MIC, we must satisfy strict requirements as specified in the Canadian Income Tax Act (subsection 130.1[6]).

Among the requirements and restrictions are:

  • We can only invest or manage funds and cannot manage or develop real property;

  • We cannot own debts secured on real property situated outside of Canada, including debts owing by non-residents (unless such debts are secured on real estate located in Canada), shares of capital stock or corporations not resident in Canada, or real property situated outside of Canada or any leasehold interest in such property;

  • No shareholder (together with related persons, as defined in the Income Tax Act) may at any time own, directly or indirectly, more than 25% of our common shares;

  • The cost for tax purposes of cash on hand, debts secured on specified residential properties, and funds on deposit with Canada Deposit Insurance Fund or Régie de l'assurance dépôts du Québec-insured institution or credit union must constitute at least 50% of the cost of all of our property;

  • The cost for tax purposes of any interest in real estate (including leaseholds but excluding real or immovable property acquired by foreclosure after default by the mortgagor) may not exceed 25% of the cost of all of our property;

  • There are certain restrictions as to our maximum debt-to-equity ratio.

HRU Financials Ltd and COSMO Mortgage Administration are our exclusive manager and administrator. They arrange and service our mortgage loans and otherwise direct our affairs and manage our business.

The board of directors has a shared goal to deliver the best the possible return on investments for our shareholders, while delivering excellent customer service.

Strong Partners & Supporters
Association

301 - 7300 Warden Ave, Markham, ON L3R 9Z6

Canada

E: info@hrufinancials.com

P: (647)360-8996

F: (647)360-7669

© 2020 by HRU Financials Ltd, HRU Mortgage Investment Corporation. All Rights Reserved.