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EquityLine secures CAD$25-million credit facility

Jamaican listed Canadian mortgage financier EquityLine Mortgage Investment Corporation has obtained a CAD$25-million credit facility with a Canadian Schedule 1 bank. Through a new Special Purpose Vehicle, EquityLine will manage qualified first and second mortgages, thus enabling many more Canadian borrowers to access their home equity quick and efficiently.

“This [CAD]$25-million credit facility will go a long way in helping EquityLine MIC meet our goal of CAD$300 million in assets under administration by 2024,” commented Sergiy Shchavyelyev, CEO of EquityLine. He said the company is excited to be working with a Canadian Schedule 1 Bank and look forward to growing this relationship. EquityLine is a Canadian mortgage investment corporation incorporated under the laws of the province of Ontario and located in Richmond Hill, Ontario.

Mischa McLeod-Hines (second right), assistant vice-president, Capital Markets, Sagicor Investments engages (from left) Sergiy Shchavyelyev, president and CEO, Equity Line Mortgage Investment Corporation (ELMIC); Jamaica Stock Exchange Managing Director Marlene Street Forrest; and ELMIC lawyer, Alison Manzer, following the successful listing of the Canadian-based mortgage provider on the JSE. (Photo: Jamaica Observer)

EquityLine was founded in 2018 and is listed on the Jamaica Stock Exchange under the symbol ELMIC. The primary focus of the corporation’s investments is prime urban 1st and 2nd residential mortgages in the urban Southern Ontario region of Canada.

During the six months ended June 30, 2021, EquityLine funded 37 new mortgages totalling CAD$10,928,500. Regulatory changes have resulted in most residential focused lenders tightening up on income qualification forcing borrowers to private lenders, as a result of difficulty qualifying for institutional loans.

“This $25-million credit facility will go a long way in helping EquityLine MIC meet our goal of CAD$300 million in assets under administration by 2024”

This has shown a large increase in demand for more private mortgage products nationwide. All of EquityLine mortgage portfolio is invested in Ontario urban markets that generally experience better real estate liquidity in periods of uncertainty and thus offer a better risk profile.

During the half year period, EquityLine earned CAD $663,514 (2020- $487,562) of interest income on net mortgage investments while the weighted average interest rate on net mortgage investments for the three months ended June 30, 2021 was 10.9 per cent. The directors report that as the company strengthens its balance sheet with the completion of the successful public offer in Jamaica in fiscal 2020, funds were put towards a high-quality mortgage portfolio. This portfolio of mortgages at June 30, 2021 has an average loan-to-value of 72.2 per cent.