Perch

Perch is a digital mortgage brokerage platform designed to streamline the mortgage process for Canadians by providing quick pre-approvals and comparisons across over 30 lenders. Founded in 2018 in Toronto, Canada, Perch simplifies the mortgage process through its online brokerage services. Led by CEO Alex Leduc, the company has completed three deals, with its most recent funding round occurring on October 18, 2022, when it raised CAD 1. 000 mn in a Seed round from Second Century Ventures.

The total amount raised by Perch to date is CAD 1. 000 mn. Perch offers a comprehensive digital platform designed to simplify the mortgage process for Canadians. Their core product is an online mortgage brokerage that facilitates quick pre-approval, providing users with access to over 30 mortgage lenders.

The platform allows users to compare mortgage rates directly, calculate their monthly payments, and assess the potential costs of borrowing. Additionally, Perch provides tools for tracking property values and strategizing renewals, catering primarily to first-time home buyers, existing homeowners, and real estate investors across Canada, including markets such as Ontario, British Columbia, Alberta, and Quebec. By automating document submissions and streamlining communication with mortgage advisors, Perch addresses the common pain points associated with obtaining a mortgage, thus enhancing the user experience and making the home buying process more efficient. Perch generates revenue primarily through partnerships with mortgage lenders, who compensate the company for successful mortgage placements.

Each transaction involves a client utilizing the platform to get pre-approved for a mortgage, during which they provide their financial details and select their desired mortgage options. Upon closing a mortgage, the lenders pay Perch a fee, thereby establishing a commission-based revenue model. This structure promotes a win-win scenario for both clients and lenders, as clients benefit from competitive rates and transparency, while lenders gain access to a wider customer base through Perch’s platform. The revenue from these transactions is directly linked to the volume of mortgage applications processed and successfully closed through Perch's services.

In October 2022, Perch raised CAD 4 million in a combination of debt and equity funding, which will be utilized to expand its lending platform and scale its sales force. The company plans to launch new features aimed at enhancing the user experience and is targeting expansion into additional Canadian markets. These initiatives will support the company’s growth strategy as it seeks to increase its market presence and customer base.