Track Record, Governance and Risk Management
Mortgage underwriting secured by Canadian residential real estate in Ontario, British Columbia and Alberta. Below: what the fund has actually paid each fiscal year, how every loan is tested before it is funded, and who checks the work.
Against a 9% target
Short duration, staggered maturities
Past performance does not indicate future results. Distributions are not guaranteed and principal can be lost.
Net rate of return paid, FY2020–FY2025
Source: Lendmax Capital MIC, “Past performance”, updated 19 September 2026. Rates actually paid, net of costs; FY2020 was the first fiscal year. FY2025 target annual return: 9%. Past performance does not indicate future results. Distributions are not guaranteed and may be reduced or suspended; higher potential returns come with higher risk, and an investor may lose some or all of the money invested.
How the return is generated
Interest on the mortgages in the book plus lender fees earned at origination, less operating costs, provisions and any losses.
Why a bonus distribution
A MIC distributes its taxable income to keep its flow-through treatment, so earnings above the regular dividend rate are paid out rather than retained.
What would reduce it
Rising arrears, enforcement costs, falling property values, or capital sitting undeployed.
5-year growth simulation
Compare quarterly-compounded reinvestment at a rate you assume with a deposit compounding annually at a rate you enter. Illustration only — not a forecast.
Assumes a constant rate, no fees and no tax, which no real investment delivers. A GIC from a CDIC member is deposit-insured up to $100,000 per insured category; MIC shares are not deposits, are not CDIC-insured, can lose value and are illiquid. Higher potential returns come with higher risk. Full DRIP calculator.
What the mortgage book lends on
Residential property that appeals to an end buyer, in markets with real transaction volume — so the security can be sold if it ever has to be.
- Single-family homes and townhomes — Owner-occupied and rental.
- Small multi-unit rentals (1–4 units) — Rental and investment property under the rental program.
- Condominiums — Urban condominium units.
Marketability is reviewed on rural and non-standard property before any approval.
Three lines of defence
Every mortgage is filtered through three questions in the same order. A file that fails any one is declined, however attractive the yield.
Asset risk
Security is only as good as the ability to realise on it. Markets with demonstrated transaction volume, stable or growing population, and property that appeals to an end user.
- Conservative loan-to-value against appraised value
- Marketability review on rural and non-standard property
- Diversification across ON, BC and AB
Borrower risk
The property is the fallback; the borrower is the primary source of repayment, so the file has to make sense for them.
- Verified cash flow where it exists
- Credit history read for behaviour, not just a score
- Equity contribution and identity / source-of-funds checks
Exit risk
The most common failure in private lending is a loan with no way out. Every file names its repayment source, timeline and fallback.
- Refinance to an institutional lender, or sale
- Structured payout or repositioning
- A documented plan B if the first exit slips
Portfolio-level controls
- Short duration — 3 to 12 months terms
- Staggered maturities across the book
- Concentration limits by region, position and borrower
- Board review of arrears and enforcement files
What underwriting cannot control
- Property values in a falling market
- A borrower's circumstances changing mid-term
- The time and cost of enforcement
- Interest rates and refinancing conditions at maturity
Go deeper: how mortgages are underwritten · loan-to-value explained · the risks of mortgage investing.
Governance and published research
Auditor
Yale PGC LLP — Chartered Professional Accountants; audits the financial statements annually.
Exempt market dealer
Drake Financial Ltd. — Registered dealer; assesses suitability before any subscription.
Registered-plan trustee
Olympia Trust Company — Administers self-directed RRSP, RRIF, TFSA and FHSA accounts.
Registered-plan trustee
Western Pacific Trust Company — Administers self-directed registered accounts.
Lendmax Inc., FSRA Mortgage Administrator Licence 13002, collects borrower payments into trust, reconciles monthly and remits to the corporation.
A real estate lawyer reviews title, registers each charge, handles payouts and discharges, and acts on enforcement.
Thought leadership by Ali Zaidi
Published papers on the Canadian alternative-lending asset class, including MIC vs REIT, first vs second mortgage investments, loan-to-value, liquidity and redemption, and where returns come from.
Request the audited financial statements
The offering memorandum includes the corporation's audited financial statements and its risk factors. Ask the investor desk for the current version, arrears and enforcement reporting, and the redemption terms.
Questions about returns and risk
What returns has Lendmax Capital MIC paid?
The fund publishes its net rate of return paid to investors by fiscal year: 0.00% (FY2020, its first year), 6.00% (FY2021), 7.83% (FY2022), 8.15% (FY2023), 10.15% (FY2024) and 13.57% (FY2025), against an FY2025 target of 9%. Past performance does not indicate future results, and distributions are not guaranteed.
How does a MIC decide which mortgages to fund?
Every file is tested in the same order: is the property saleable, can the borrower carry the loan, and how does the loan end? A file that fails any one of the three is declined, whatever the yield. How mortgages are underwritten.
How do I know if a MIC is well run?
Look for audited financial statements, a licensed mortgage administrator holding funds in trust, distribution through a registered exempt market dealer, clear arrears and enforcement reporting, and redemption terms you understand. How to evaluate a MIC.
Speak with the investor desk
Explore Mortgage Investment Opportunities
Connect with our experienced mortgage professionals to discuss available mortgage investment opportunities, understand the underlying property and security, compare potential returns and risks, and determine which opportunities align with your investment objectives.
Securities are offered by offering memorandum through a registered exempt market dealer. Not every investment is suitable for every investor.