STABILITY, CONSISTENCY & VISION
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HRU Mortgage Investment Corporation was established in Toronto, Canada in June 2017. The primary investment objective is to make investments in residential mortgages. Financing is collateralized by real property located in the Greater Toronto Area to generate monthly interest income for both individual and group investors.
We are one of Canada's exclusive non-bank lender, 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.
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 80%. 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.
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).
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 is our exclusive MIC manager. 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 possible return on investments for our shareholders while delivering excellent customer service.