First, we began with the knowledge that by going direct to consumers with our lending services, we could significantly lower the interest rates we charge them while still ensuring a strong return for our investors.
At the same time, we go direct to investors to raise the money we lend. This means we avoid costly commissions and other compensation for brokers and money managers that may reduce return for our investors.
With over $6 billion in mortgages funded, Cannect has consistently helped Canadians achieve their financial goals. Our proven track record reflects our commitment to providing tailored lending solutions, helping homeowners, self-employed individuals, and small business owners access the funds they need with competitive rates and flexible terms.
We reduce risk with a conservative loan to value lending ratio. More conservative than even the big 5 Canadian banks. This means we’re careful with how much of a home’s equity we allow our customers to borrow. As a result, not one customer has defaulted on their mortgage in our history.
During the initial funding period, there was a dip in the return as the influx of investor dollars was yet to be lent out to borrowers.
As borrowers increased and more investor dollars were lent out, return grew again to over 8%.
After building the investor and borrower mix for just over two years, we identified that an overly aggressive risk-management approach was impacting returns. To address this, we implemented custom technology to automate and manage risk and return.
This innovation led to a more consistent LTV and steadily rising returns.
Recognizing the impact stricter 2018 lending rules were going to have on the market, we began investing in a direct-to-consumer model that was launched early 2018.
Despite much stricter lending rules, this approach has allowed us to maintain our industry-leading LTV while finding the right mix of consumer marketing to deliver over--in annualized returns since our inception.
In early March, we became increasingly concerned about the rise in COVID-19 cases worldwide and cautiously paused our lending activities. As a result, our cash position exceeded 35% during the early days of the pandemic.
As the global economy began to adapt to the new conditions, we gradually resumed lending and observed our returns picking back up.
Cannect’s Mortgage Investment Corporation has seen an average of 8.14% returns over the past 10 years.
Prospective investors should read the Offering Memorandum which details the risk factors and investment objectives before investing. Mortgage investments are not guaranteed, past performances may not be repeated, and investors may experience gain or loss. Monthly distributions are not guaranteed and may be adjusted from time to time.
