Hi everyone,
We are committed to providing regular updates including; performance, highlights, and customer success stories. Please note this update is as of March 31, 2023.
Quarter in Review
The first quarter of 2023 was very active and positive for Shelter Lending Corporation and Northern Alliance Trust. We funded over $3 Million in new mortgages and the fund reached a valuation of $33.7 million. We were pleased to return 6.1% for A-Units and 8.0% for B-Units (annualized and compounded quarterly) at a very stable loan-to-value ratio of 60.5%.
As mentioned in our 2022-Q4 summary, we observed qualifying rates increase for bank borrowers and more of those borrowers were forced to move to our sector of the mortgage industry. As existing loans come up for renewal (after their one-year term expires), we increase the interest rate to market rates which are typically 2% higher than the market bore a year ago. We expect all our loans to reflect current market interest rates by the end of summer 2023.
A positive in the Canadian economy this quarter is slowing the high inflation that we experienced in 2022. However, it is still not clear which way the economy is moving at this time. Shelter Lending is still taking a conservative approach to approving new loans and maintaining our high standard of underwriting and due diligence as we move through the year.
We are now actively seeking to increase the equity in our funds by reaching out to new and existing investors. Please give Dave a call if you want to increase your investment with our funds. If you want to recommend our fund to friends and family, please inquire about our investor referral program. Don’t forget that our fund is RRSP and TFSA eligible and can also hold corporate accounts.
Performance & Highlights - Northern Alliance Trust (NAT)
- 2023 Q1 dividend was 8.0% (annualized and compounded quarterly)
- 2022 annual return 7.8% (compounded quarterly)
- $33.7 million in assets under management
- Over 160 mortgages
- 52% first mortgages; 48% second mortgages
- 66% BC Mortgages; 32% AB and 2% MB
- 60.5% Weighted average Loan-to-Value
Customer Success Story
Borrowers needed funds to pay off debts, reduce monthly obligations and inject some cash into their business.
- Location: Airdrie, AB
- Single Family Detached Home built in 2015
- Loan size: $125,000
- 2nd Mortgage
- LTV: 70%
- Interest Rate: 12.49%
Opportunity International
Shelter Lending Corporation and its sister company Northern Alliance Corporation are proud supporters of Opportunity International. Many of you are already involved in this innovative and exciting non-profit organization that assists entrepreneurs in third-world countries with micro-loans and training to become self-reliant and successful. We are part of the Alberta Business Trust group which is focused on supporting entrepreneurial women in Haiti. CLICK HERE
About Shelter Lending Corporation
Shelter Lending Corporation is a mortgage brokerage and mortgage fund manager and administrator for Northern Alliance Trust and Provident Diversified Mortgage Corp. The funds lend mortgages to residential borrowers in British Columbia, Alberta and Manitoba.
About Northern Alliance Financial Corporation
Northern Alliance Financial Corporation is an exempt market dealer, providing two mortgage investment funds with capital from investors in British Columbia, Alberta, Manitoba and Ontario.
