Top Of Class Mortgage Investment Corporation Touts Alternative Investment Solution

While factors like AI, recent rate cuts, and strong corporate earnings have managed to keep markets elevated, other influences such as persistent inflation, a weak labour market and trade conflicts could be signals that indicate choppy waters ahead. This kind of outlook can provoke many investors to consider alternative investments in an effort to diversify risk and stabilize returns.

For investors who value this kind of strategic diversification, MCAN Financial can provide a powerful, sustainable solution. The company offers a complement to traditional holdings by providing exposure to Canada’s residential real estate market, and the prospect of higher returns..

MCAN, which is publicly traded on the TSX under the symbol MKP, is Canada's only federally regulated mortgage investment corporation. As a MIC, it leverages investor capital to make strategic investments - primarily focused on single family mortgages and construction loans for residential real estate. It then shares the interest it generates from these loans through regular income distributions. This provides investors a great way to earn real estate-backed returns without the risk of owning property directly.

MCAN’s approach to investing has stood the test of time. Since its origin more than three decades ago, MCAN has amassed close to $6 billion in total assets, a sum that has grown by 155% over the last 5 years.

In addition to its total asset growth, MCAN has proven that residential real estate is a prudent investment capable of providing stable long-term returns through a variety of credit cycles. The company boasts an expected annual return on equity in the range of 13 to 15%, while it increased its dividend by more than 5% in 2025, a reflection of MCAN’s confidence in its business model and its performance within the market.

“In the current market, we are top of class if you look at it on a total shareholder return basis,” declared Derek Sutherland, President and CEO of MCAN. “In terms of share price growth and reinvestment of dividends, year-to-date we are outperforming the big six Canadian banks on an aggregate basis.”

If you invested $100 in MCAN Financial five years ago and reinvested all the dividends, your investment would now be worth almost $300. A comparable investment in the TSX index would only be worth just over $200 in the same period.

A final component to the MCAN success story is its significant ownership interest in MCAP Commercial LP,  Canada’s largest and preeminent independent mortgage finance companies. This strategic partner provides MCAN with a quiet but powerful engine to help fuel its on-going performance.

While performance is the name of the game at MCAN, it’s always tempered with a healthy dose of prudent risk management. It’s a prevailing attitude that has been fortified by strong oversight forces.

MCAN operates under the Trust and Loan Companies Act (Canada) and is subject to the guidelines and regulations set by the Office of the Superintendent of Financial Institutions Canada (“OSFI”). MCAN is also a member of the Canada Deposit Insurance Corporation (CDIC), that offers protection for eligible GIC deposits for  retail and broker-channel investors. Together, this oversight adds a layer of security and trust to satisfy even more conservative investors.

Besides providing stable returns as a mortgage investment corporation, MCAN is also making a real difference in Canadian communities, helping Canadians reimagine what’s possible for them through homeownership.. As the economy evolves, people increasingly find themselves outside the range of banks when it comes to things like mortgages. This includes entrepreneurs who may not have traditional income statements; multi-generational families leveraging alternative, contributory income to buy homes; newcomers or young Canadians who haven’t established credit, and many people who have experienced life events that can impact their credit significantly as a result of sickness, divorce, or loss of employment. “The key is understanding each borrower’s entire story,” Sutherland said. “When you look at it objectively, we can often find a way to help them achieve their goals. Every story is different. Every community is different. Employing this kind of insight in addition to the years of experience and data we have, has enabled us to develop the skill set and the confidence to know we're going to get our money back from any particular transaction.”

MCAN can offer flexible underwriting because it knows its markets well. It starts from the ground up, as the homes and communities it serves are being built. It’s the kind of grass-roots work that really gives it an in-depth knowledge of the people it works with.

MCAN leverages deep market insight and a relationship-driven approach to fuel sustainable growth. While Canada’s mortgage landscape is dominated by the six largest banks, MCAN’s strength lies in focus and agility—not scale for its own sake. A 10% increase in business represents more than $500 million in assets, a target well within reach. As Sutherland noted, “We don’t need to own the entire market to deliver exceptional results. Strategic growth in the right areas creates meaningful impact for our shareholders.”

That growth strategy includes expanding MCAN’s broker network on the single-family side, further investment in GIC distribution channels, and diversifying its construction portfolio. While high-rise projects remain outside the current scope, moving into medium- and higher-density townhomes and low-rise condominium developments opens new opportunities and positions MCAN to capture emerging demand.

MCAN has a proven track record built on decades of experience in Canadian residential real estate. That depth of knowledge, combined with strong leadership, positions the firm to deliver consistent results well into the future. As Sutherland emphasizes, “Our partners know we’re here for the long term. While many lenders come and go, MCAN understands this market, and we’re committed to _{a long-term sustainable presence in Canadian residential real estate}.”

“We're taking MCAN to the next level…the next evolution, and I'm going to be here for that."”

As long as MCAN relies on its vast expertise and has the confidence to continue doing what it does best, there’s no reason the company won’t remain top of class.

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