In this video, our Head of Research talks about how Mortgage Investment Corporation (MIC) operates and analyzes how the increase in interest rates will benefit MICs. We initiated coverage on Builders Capital Mortgage Corp. (TSXV: BCF) a Canadian mortgage investment company. It acquires originates and maintains a portfolio consisting of construction mortgages that are secured by development stage residential real property.
Here is the latest equity research report on Builders Capital Mortgage https://www.researchfrc.com/builders-…
BCF reported record revenue (up 20% YoY) and EPS (up 22% YoY) in Q3. On average, revenue and EPS were 4% higher than our estimates due to higher mortgages outstanding and lending rates. Although the Bank of Canada (BoC) is expected to continue raising its benchmark rate, we are expecting the BoC to turn less hawkish by Q1-2023. A recent survey by IG Wealth Management indicated that more than 50% of Canadians are worried about being able to make mortgage payments if rates continue to rise. The IMF recently lowered their 2023 GDP growth forecast for Canada from 1.8% to 1.5%.