As a Trust, HarbourEdge underwrites a large diversified pool of loans, many of them short term construction mortgages. We handle all the due diligence and the paperwork involved with underwriting each mortgage.

A great number of clients have found us by word of mouth through family, friends and wealth advisors, a testament to the success of this alternative investment. We know our niche—small to medium-sized construction mortgages—extremely well, thanks to the experience and acumen of our Management Team.

HarbourEdge is primarily concerned with Preservation of Capital by minimizing risk. We accomplish this goal through various means:

Astute fund management:
HarbourEdge has funded mortgages in excess of $500 million. We continually monitor mortgage concentration to ensure that no single loan exceeds 15% of the mortgage portfolio at time of funding. The maximum loan-to-value we will underwrite to is 75%.

Diversification:
A diversified portfolio inherently carries less risk. The HarbourEdge MIT is diversified in many ways:
– A large portfolio of mortgages
– Many different types of mortgages
– Geographic diversification within the mortgage portfolio, in Ontario
– Many different borrowers
– Mortgages are fully secured by real estate and personal guarantees

Well-defined lending criteria:
Some potentially lucrative mortgage opportunities carry too high a risk. HarbourEdge does not invest in mortgages for businesses in unproven industries, highly volatile industries, or sunset industries. Nor do we invest in condominium construction mortgages in Toronto.

Market niche:
HarbourEdge specializes in lending to specific, historically underserviced sectors of the mortgage market, generally in the form of construction mortgages, but also term and income lending. In the building industry, we underwrite smaller and medium-sized mortgages for the construction sector—an industry with which our Management Team is intimately acquainted.

Due diligence:
For every new loan, we travel to the site, carry out an in-person inspection, and meet the borrower prior to finalizing the mortgage commitment. On every subsequent construction advance, senior management visit the site once again to ensure that scope of work is consistent with the draw request and that it continues to provide support for the loan.

Short term to maturity:
The average term to maturity for HarbourEdge MIT’s pool of mortgages, at any given time, is approximately 8 months. This increases the liquidity of this alternative investment and reduces exposure to increases in interest rates. These two factors provide stability that longer-term mortgages cannot.

Few second mortgages:
Investors benefit from minimal exposure to second mortgages, which have never exceeded 15% of the total HarbourEdge MIT portfolio.

Like to learn more? Please contact us. We will be happy to answer any questions that you may have and to walk you through our comprehensive Investor Information Package. Please note that we can only accept accredited investors as clients.

^* Investment return will fluctuate over time. Past performance may not be repeated.