EquityLine Mortgage Investment Corporation, which is listed on the Jamaican stock market has obtained a CAD $25-million credit facility from a Canadian Schedule 1 bank.

EquityLine is a Canadian mortgage investment corporation incorporated under the laws of the Province of Ontario and located in Richmond Hill, Ontario will use the proceeds of the loan to boost its mortgage portfolio. The Canadian mortgage financier, through a new Special Purpose Vehicle, will manage qualified first and second mortgages, thus enabling many more Canadian borrowers to access their home equity quick and efficiently.  

According to Chief Executive Officer of EquityLine, Sergiy Shchavyelyev, “this $25 million credit facility will go a long way in helping EquityLine meet its goal of CAD $300 million in assets under administration by 2024.”

He added that the company is excited to be working with a Canadian Schedule 1 Bank and look forward to growing this relationship.

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.

COVID-19 had minimal effect on EquityLine

For the last quarter and six months ended June 30, 2021, COVID-19 has had a minimal impact on the company’s income, as shown by the fact that there were no defaults or no bounced cheques on its mortgage loans. EquityLine, during the period, did not receive any request to default mortgages as of the date of the publication of the June quarterly results.

Given the current situation, the company reports that is still expecting positive operating cash flows for the foreseeable future. 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 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 six month 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.