Our portfolio

Engineered to reduce risk and maximize reward

Ten years of established success isn’t an accident

We’ve worked hard to engineer a portfolio that returns well every month, with an approach that reduces risk and sets us up for long term success, even in the event of a real estate correction.

This is all made possible through our unique four pillar approach.

Direct to consumer

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.

Direct to investor

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.

Loan to value lending ratio

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.

Loan to value lending ratio

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.

So what does this mean for our investment portfolio?

So what does this mean for our investment portfolio?

*with DRIP

Industry leading 50.24% loan-to-value ratio

*as of March 15th, 2023

How does loan-to-value impact risk?

When you’re looking to invest in the home equity market, loan-to-value (LTV) is the key metric that tells you what level of risk the investment holds. Simply put, loan-to-value is the amount of money lent based on the current accepted value of a home. The higher the lending ratio, the lower the equity remains in a home.

Why does this matter?

If you were to borrow, say, $650,000 against a $1,000,000 home and there was a 20% correction in the market, you’d be left with only $150,000 in remaining equity when that home drops to $800,000. That’s a shift from a 65% loan-to-value ratio to 81%! That puts a significant strain on the borrower. One which can impact their ability to meet their lending obligations, which would put an investment in that borrower at risk.

If you were to borrow, say, $650,000 against a $1,000,000 home and there was a 20% correction in the market, you’d be left with only $150,000 in remaining equity when that home drops to $800,000. That’s a shift from a 65% loan-to-value ratio to 81%! That puts a significant strain on the borrower. One which can impact their ability to meet their lending obligations, which would put an investment in that borrower at risk.

That example is exactly the kind of scenario most lenders—including the big banks—are investing in, often with loan-to-value ratios well north of 60%.

*As of April 2023

We don’t toy with risk. We’re in this for the long term. And we want you to be too. No fickle stock market to play with. No dicey real estate investments. No added pressure on our borrowers that can limit their ability to pay back a loan. Instead, we offer a healthy mix of loans from across the real estate market, at an industry-low loan-to-value ratio.

What does a healthy mix of loans look like?

An industry-leading LTV isn’t the only factor in mitigating risk. We’ve worked to build a diverse portfolio which offers a series of additional advantages. In addition to reaching different consumer groups and investing in a variety of different types of real estate, this mix means the average loan is due in 6 months, which increases liquidity and investment flexibility.

Here’s a snapshot of our mix of investments.

Property type

    Loan amount

      Mortgage type

        How do we maintain such a high rate of return?

        That’s where the other three pillars come into play: we’ve invested heavily in technology and automation that helps us connect with and service both borrowers and investors directly.

        Automated processes and technology-enabled services mean we can reach both investors like yourself and thousands of borrowers without the need of costly middle-men who exist to shave off value through referral and management fees.

        Instead, we pass these savings directly to the investor, and in offering best-in-class rates to borrowers. All of this means we continue to grow and diversify the portfolio while maintaining great, lower risk returns when compared to the rest of the real estate investment market.

        Let’s see this in action

        Over the years, we’ve been working to reduce risk by maintaining industry leading LTVs. These lower risk loans often mean lower return, but with the launch of our lending algorithm Feb 2017 and our direct to consumer website Feb 2018 we’ve established a borrowing ecosystem that uniquely positions us to reduce risk while increasing return.

        Historical rate of return and weighted LTV average

        Initial funding

        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%.

        Automation

        After building the investor and borrower mix for just over two years and seeing an overly aggressive risk-management approach that was impacting returns, custom technology was put in place to automate and manage risk and return.

        This led to a more consistent LTV and steadily rising returns.

        Marketing

        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 apprach has allowed us to maintain our industry leading LTV while finding the right mix of consumer marketing to deliver an average 9-year return of {{ options.invest_return_rate }}%.

        COVID-19

        In early March, we started getting concerned with the increase in COVID 19 cases worldwide and cautiously paused our lending. This led to our cash position exceeding 35% in the early pandemic days.

        As the global economy started adapting to the conditions, we slowly began lending again and saw our returns pick back up.

        You can see now why investing with Cannect Invest presents an increasingly compelling opportunity to diversing your investment portfolio.

        Whether you’re just building your savings now or are an experienced investor, Cannect Invest can be an essential part of your portfolio.

        Ready to get started?

        icon-invest

        Invest with Cannect to build even more equity

        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.