HarbourEdge Mortgage Investment Corporation (HarbourEdge MIC) & HarbourEdge Capital Corporation (the Manager) were formed in 2005 by three principals who collectively possess over 100 years of key industry experiences. In July 2012 HarbourEdge Asset Management Corporation (the Agent) was formed to raise capital on behalf of HarbourEdge MIC.
HarbourEdge MIC is a privately owned company offering investors the opportunity to participate in an alternative investment class of a diversified, secure portfolio of professionally managed, high yielding Canadian residential and commercial real estate mortgages.
The Manager is engaged by HarbourEdge MIC under a Management Services Agreement which sets out a strict set of underwriting and administrative criteria, to ensure the core values of HarbourEdge MIC are adhered to. The Manager is uniquely qualified with over 100 years of experience in real estate development, residential and commercial construction, property management, commercial and residential underwriting, mortgage administration and investment banking experience.
The unique combination of these experiences serves to differentiate HarbourEdge MIC from other private lenders.
The Agent has been engaged by HarbourEdge MIC through an Agency Agreement to sell Class “A” Preferred Shares on a private placement basis. As a licensed Exempt Market Dealer (EMD) with the Ontario Securities Commission (OSC), the Agent is further obliged to ensure each investor is eligible to invest in Exempt Market Products and that such an investment is suitable based on their personal financial situation.
Our Core Value
Preservation of Capital is achieved through careful risk management real estate lending practices designed to maximize potential returns to their fullest while preserving capital. We strive to provide superior customer service while adding value to both our investors and borrowers.
HarbourEdge MIC specializes in lending to specific sectors of the mortgage market historically under serviced by private and institutional lenders in terms of loan type amount and geographic location (e.g. smaller markets in Ontario and Atlantic Canada). Demand in these sectors has continued to be strong through the recent credit crisis and resultant economic downturn.
Throughout these periods of uncertainty, HarbourEdge MIC has maintained its focus on a number of critical underwriting criteria that has mitigated the portfolio's overall risk.
- The portfolio is diversified amongst over 90 mortgages with a mix of types of investments.
- We continually monitor concentration risk (with no one loan exceeding 10% of the total portfolio).
- We have historically maintained minimal 2nd mortgage exposure at less than 15% of the portfolio.
- The portfolio is comprised of a mix of residential and commercial mortgages with a legislated minimum of 50% residential. Over the past three fiscal years, the portfolio has experienced an average weighting of 65% residential mortgages and 35% commercial mortgages. We deliberately remain overweight in residential mortgages as this sector is less volatile than the commercial sector.
- Based on third party appraisals obtained at the time of funding, the loan to value ratio of the portfolio since inception has not exceeded 60%.
- We are invested in a number of different communities providing geographic diversification with limited exposure in the more speculative markets. The balanced markets we invest in have not experienced significant upswings and should avoid the rapid declines that often follow.
- We typically make investments with terms between 6 months and 24 months, with the average term to maturity within the portfolio historically averaging approximately 8 months, providing a high level of liquidity to the mortgage portfolio.