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An innovative online acquisition channel makes it easy for potential borrowers to quickly learn if they qualify for a mortgage loan, and at what rate. Cannect’s proprietary backend technology links to hundreds of data sources and gives Cannect and the client a deeper understanding of the client’s property and financing abilities, in seconds.
“Our technology advantage is about bringing transparency to the transaction and being more effective at pricing and closing loans than our competition. We are able to price a loan for our clients online in seconds, in full automation, while the other guy is still collecting paperwork and requesting appraisals. All of this translates into better terms for the borrower,” Tzaferis says.
For investors, Cannect lends at a conservative loan-to-value ratio of 50 to 70 per cent, and only when they can see a credible six to 12-month exit strategy for the borrower. Loans are made using conservative appraisals. Those secured against rural, seasonal or special-purpose properties are avoided. To date, Cannect has not lost a dollar of investor capital, notes Tzaferis.
Tzaferis says Cannect responds to the fact that solid borrowers are finding they can’t get a fair deal through traditional avenues. Photo by Lee Dale
Investors also have direct access to Cannect’s web portal, which provides detailed, real-time information about properties held in the portfolio, selection criteria, appraisals, exit strategies, and returns.
“At Cannect we value transparency. We select properties for our fund based on strict risk criteria, and communicate directly with borrowers and investors. We understand that our partners are both the borrower and the investor. For this to work well, everyone has to benefit,” Tzaferis says. He also points out all of Cannect’s employees are salaried employees, and everyone who works at Cannect has invested in its mortgage fund.