We are a private Canadian non-bank mortgage lender providing mortgage financing solutions to borrowers in marketable urban communities in British Columbia, Alberta, Manitoba and Ontario. Working through the professional mortgage broker channel, we provide mortgage financing for borrowers who have the capacity to repay and significant equity in real estate but do not qualify for institutional financing.Canada’s limited number of financial institutions and their tightening in policy regarding their own mortgage lending has created an opportunity to service a growing segment of the mortgage market with an increasing level of security for our shareholders. We focus on generating a strong monthly yield for our shareholders by providing mortgages to qualified borrowers that cannot be placed with financial institutions but represent an acceptable level of underwriting risk. Our strategy employs a disciplined approach that prioritizes a borrower’s capacity to repay and focuses only on those real estate sectors with acceptable risk profiles.
Investing in real estate offers security, but owning it can be risky when markets soften. Mortgage investing offers downside protection relative to an equity investment when real estate values decline. We lend on average 53% of the value of a home, so our portfolio can absorb a drop in the housing market with minimal expectation of loss.
We provide mortgages to borrowers whose financing needs are not being met by larger financial institutions. The average size of mortgage in our portfolio as of September 30, 2019 is $269,555 with a weighted average interest rate of 8.67% and a portfolio average loan-to-value of 53%. The loan-to-value ratio of any mortgage at the time of underwriting may not exceed 75% of the current appraised value.
We consider our mortgage portfolio high quality yet we are able to charge higher rates than the banks because we offer flexibility, short term solutions and we serve a segment of the market that is currently underserved.
A typical loan in our portfolio has an interest rate of 6.5% to 8.5% per annum, a loan-to-value ratio of 50% – 65%, a one or two-year term and monthly amortized mortgage payments.
(At Sept 30, 2019)