As a mortgage lender, Canwealth is positioning our main business on high-quality mortgage market, focusing on the central areas where the market is relatively stable and the default rate is comparatively low. On the other hand, our main customers are basically from those who have an acceptable underwriting risk. Our existence is significant because it makes up for the vacancies from the limited lending business of large financial institutions. Our lending parameters are very strict and conservative, requiring all LTV of no more than 75% of the professionally-praised property value. The amount of loans in general is between $50,000 and $ 5 million. For large amount of loans, we usually cooperate with financial institutions or private lenders in order to achieve the best risk control.
- Capital Management:
Canwealth Financial Management Corporation (“CANWEALTH FMC”)
As manager of Canwealth MIC, Canwealth FMC is responsible for originating, underwriting and servicing Canwealth’s loan portfolios to ensure the proper fund operations of Canwealth MIC.
Mezzanine and equity financing are rather complex compared to their counterparts, so it is essential to have a skilled underwriter like Canwealth FMC, with comprehensive understanding of the real estate market and a deep comprehension of local markets. Canwealth FMC has all the knowledge and expertise to do the job to achieve high quality investment opportunities across BC.
Canwealth FMC has built up a strategic relationship with skilled real estate developers and investors in Lower Mainland in BC, and also developed a good reputation for being reliable, secured, responsive source of mezzanine and equity capital. Our creative deal processes protect the potential downside exposure for our investors meanwhile meeting the requirements from our real estate partnerships.
CANWEALTH REAL ESTATE FINANCE GROUP consists of the following legal entities:
- Mortgage Investment:
Canwealth Mortgage Investment Corporation (“CANWEALTH MIC”)
So far, investors buy a preferred share in Canwealth MIC for $ 1.00 per share. According to the revenue of the selected mortgage investment portfolio, we pay our investors on a quarterly basis based on the mortgage interest income. Received dividend income can be withdrawn in cash or can be reinvested to achieve a higher compound interest. MIC’s investment for one year, and after one year investors can choose to divest or can continue to reinvest principal and dividends in order to obtain a higher rate of return.
Our team consists of dedicated professionals with extensive backgrounds in real estate lending, consulting as well as investment banking, investment management, accounting and law.
How Canwealth maximize investors’ benefit?
TO PRESERVE EQUITY
TO PERFORM LEGALLY
TO BE PROFESSIONAL
We all know that the returns from a fixed term deposit through most chartered banks are close to zero, and “higher return” investments like stocks and mutual funds are riskier but not guaranteed. Because of the higher level of volatility associated with other investments, our mortgage portfolio is consistently more able to minimize the loss and maximize investors’s benefit.
Several factors make these results possible:
- Attractive interest rate spreads and fee income
Canwealth MIC employs a credit facility which is similar to the one in banks . The substantial positive expansion between bank lending rates and interest rates applied to mortgages greatly increases the investment returns achieved. The fee is another aspect of the income which covers borrowers’ application, process, administration.
- High-quality mortgage and real estate
The historical rate of MICs’ default is very low, and the returns on investment you see will be net of all costs, including loan losses. We mainly invest in first mortgages by owner-occupied houses, residential building lots and lands, and carefully-selected residential 2nd mortgages. Most of the mortgages come from a stable, thriving real estate market in city center areas, where the property values are growing faster and there are more schools, hospitals and other public services.
- Extensive portfolio diversification
Canwealth managers are very diligent to achieve a diversified, professional managed and growing high-quality mortgage. We monitor the portfolio every day to ensure the best combination of different mortgage types, and the portfolio is always as fully funded as possible. Can you invest in a direct mortgage by yourself? Yes, you can, but you will need a lot of capital, and you will face greater capital loss potential because of the lack of diversification.
- Professional management
Canwealth is managed by professionals who have extensive professional experience in all aspects of mortgage, real estate assessment, banking and mortgage law. Because we are actively involved in the mortgage market every day, we have the expertise and experience to ensure that we negotiate the best rates, fees and other terms and conditions. Once mortgages are advanced, we will handle all aspects of portfolio management, including mortgages, real estate taxes, maintenance insurance, mortgage renewals and mortgages maturity.
- Transparency and information
The quarterly-distributed dividends statements with your account details as well as a summary of the overall MIC portfolio including annual audited financial statements are all open to our investors.