The Cannect Mortgage Investment Corporation is a great investment during a period of inflation and rising interest rates.
When interest rates drop, borrowers break their mortgage to access more capital. This is exactly what they did in 2020.
Now interest rates are much, much higher! If these borrowers need to access more capital, do they really want to break that term?
Reducing weighted average cost of capital (WACC) is always the game plan. So now those same borrowers with great income and great credit scores will consider 2nd position home equity loans if they need more capital in order to keep that low-rate 1st mortgage in tact. Have a listen to learn why this is beneficial to the security of Cannect MIC’s portfolio.
Over the last three months, we have already begun to see this come into effect. Cannect has always taken great pride in only lending money to those borrowers we know we can help exit the loan and have ample equity in their home, but lending to this new group of borrowers makes us feel even more confident about where our investor capital is going.
