2025 Q4 Management's Discussion & Analysis

MCAN FINANCIAL GROUP MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS Q 4 2025 ENDING DECEMBER 31 , 2025

M C A N F I N A N C I A L . C O M T S X : M K P

MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS

MCAN Mortgage Corporation is doing business as ("d/b/a") MCAN Financial Group ("MCAN", the "Company" or "we"). This Management's Discussion and Analysis of Operations ("MD&A") should be read in conjunction with the consolidated balance sheets and accompanying notes at December 31, 2025 and December 31, 2024 and the consolidated statements of income, comprehensive income, changes in shareholders' equity and cash flows for the years then ended, which have been prepared in accordance with International Financial Reporting Standards ("IFRS"), which are the Generally Accepted Accounting Principles ("GAAP") in Canada, and presented in Canadian currency. This MD&A has been presented as of February 23, 2026.

Additional information regarding MCAN, including copies of our continuous disclosure materials such as the Annual Information Form, are available on the System for Electronic Document Analysis and Retrieval ("SEDAR+") at https://www.sedarplus.ca and our website at https://www.mcanfinancial.com.

TABLE OF CONTENTS - MD&A

A CAUTION ABOUT FORWARD-LOOKING INFORMATION AND STATEMENTS 15

SELECTED FINANCIAL INFORMATION 16

BUSINESS OVERVIEW AND OUTLOOK 19

HIGHLIGHTS 21

RESULTS OF OPERATIONS 25

FINANCIAL POSITION 34

CAPITAL MANAGEMENT 45

RISK FACTORS 49

DESCRIPTION OF CAPITAL STRUCTURE 54

OFF-BALANCE SHEET ARRANGEMENTS 54

DIVIDEND POLICY AND RECORD 55

TRANSACTIONS WITH RELATED PARTIES 55

FINANCIAL INSTRUMENTS AND OTHER INSTRUMENTS 55

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS 55

DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROLS OVER FINANCIAL REPORTING 57

NON-GAAP AND OTHER FINANCIAL MEASURES 57

GLOSSARY 58

‌A CAUTION ABOUT FORWARD-LOOKING INFORMATION AND STATEMENTS

This MD&A contains forward-looking information within the meaning of applicable Canadian securities laws. All information contained in this MD&A, other than statements of current and historical fact, is forward-looking information. All of the forward-looking information in this MD&A is qualified by this cautionary note. Often, but not always, forward-looking information can be identified by the use of words such as "may," "believe," "will," "anticipate," "expect," "planned," "estimate," "project," "future," and variations of these or similar words or other expressions that are predictions of, or indicate, future events and trends and that do not relate to historical matters. Forward-looking information in this MD&A includes, among others, statements and assumptions with respect to:

• the current business environment, economic environment and outlook;

• possible or assumed future results;

• our ability to create shareholder value;

• our business goals and strategy;

• the potential impact of new regulations and changes to existing regulations as well as any changes in tax legislation;

• the stability of home prices;

• the effect of challenging conditions on us;

• the performance of our investments;

• factors affecting our competitive position within the housing lending market;

• international trade, including changes in tariffs, international economic uncertainties, failures of international financial institutions and geopolitical uncertainties and their impact on the Canadian economy;

• sufficiency of our access to liquidity and capital resources;

• the timing and effect of interest rate changes on our cash flows; and

• the declaration and payment of dividends.

  Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information reflects management's current beliefs and is based on information currently available to management. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information.

  The material factors or assumptions that we identified and were applied by us in drawing conclusions or making forecasts or projections set out in the forward-looking information, include, but are not limited to:

• our ability to successfully implement and realize on our business goals and strategy;

• government regulation of our business and the cost to us of such regulation;

• factors and assumptions regarding interest rates, including the effect of Bank of Canada actions already taken;

• the effect of supply chain issues;

• the effect of inflation;

• housing sales and residential mortgage borrowing activities;

• the effect of household debt service levels;

• the effect of competition;

• systems failure or cyber and security breaches;

• the availability of funding and capital to meet our requirements;

• investor appetite for securitization products;

• the value of mortgage originations;

• the expected spread between interest earned on mortgage portfolios and interest paid on deposits;

• the relative uncertainty and volatility of real estate markets;

• acceptance of our products in the marketplace;

• the stage of the real estate cycle and the maturity phase of the mortgage market;

• impact on housing demand from changing population demographics and immigration patterns;

• our ability to forecast future changes to borrower credit and credit scores, loan to value ratios and other forward-looking factors used in assessing expected credit losses and rates of default;

• availability of key personnel;

• our operating cost structure;

• the current tax regime; and

• operations within, and market conditions relating to, our equity and other investments.

  External geopolitical conflicts and government and Bank of Canada economic policy have resulted in uncertainty relating to the Company's internal expectations, estimates, projections, assumptions and beliefs, including with respect to the Canadian economy, employment conditions, interest rates, supply chain issues, international trade, inflation, levels of housing activity and household debt service levels. There can be no assurance that such expectations, estimates, projections, assumptions and beliefs will continue to be valid. The impacts that any further or escalating geopolitical conflicts will have on our business is uncertain and difficult to predict.

  Reliance should not be placed on forward-looking information because it involves known and unknown risks, uncertainties and other factors, which may cause actual results to differ materially from anticipated future results expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from those set forth in the forward-looking information include, but are not limited to, the risk that any of the above opinions, estimates or assumptions are inaccurate and the other risks and uncertainties referred to in our Annual Information Form for the year ended December 31, 2025, this MD&A and our other public filings with the applicable Canadian regulatory authorities.

  Subject to applicable securities law requirements, we undertake no obligation to publicly update or revise any forward-looking information after the date of this MD&A whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and any forward-looking information. However, any further disclosures made on related subjects in subsequent reports should be consulted.

  ‌SELECTED FINANCIAL INFORMATION

  Table 1: Financial Statement Highlights - Annual

  (in thousands except per share amounts, % and where indicated) At December 31	2025	2024		Change (%)	2023		Change (%)
  Income Statement Highlights Net interest Income	$ 95,839	$ 96,403		(1%)	$ 94,181		2%
  Equity income from MCAP Commercial LP	$ 33,444	$ 28,803		16%	$ 22,010		52%
  PPPT income1	$ 88,082	$ 79,812		10%	$ 82,721		6%
  Provision for credit losses	$ 13,460	$ 3,258		313%	$ 4,494		200%
  Net income	$ 74,871	$ 77,586		(3%)	$ 77,498		(3%)
  Basic and diluted earnings per share	$ 1.89	$ 2.06		(8%)	$ 2.22		(15%)
  Dividends per share - cash	$ 1.64	$ 1.56		5%	$ 1.48		11%
  Next quarter's dividend per share - cash	$ 0.43
  Return on average shareholders' equity 1	12.07 %	13.40	%	(10%)	15.05	%	(20%)
  Taxable income per share2	$ 1.23	$ 1.86		(34%)	$ 1.31		(6%)
  Spread
  Spread of non-securitized mortgages over term deposit interest and expenses 1	2.73 %	2.92	%	(0.19%)	3.57	%	(0.84%)
  Spread of insured securitized mortgages over liabilities1	0.48 %	0.49	%	(0.01%)	0.39	%	0.09%
  Spread of uninsured securitized mortgages over liabilities1	2.33 %	-	%	n/a	-	%	2.33%
  Average term to maturity (in months)
  Mortgages - non-securitized	10.6	9.5		12%	12.7		(17%)
  Term deposits	16.7	18.5		(10%)	18.5		(10%)
  Balance Sheet Highlights ($ million)
  Total assets	$ 6,477	$ 5,348		21%	$ 4,739		37%
  Mortgages - non-securitized	$ 2,480	$ 2,464		1%	$ 2,415		3%
  Mortgages - securitized	$ 3,459	$ 2,420		43%	$ 1,930		79%
  Total liabilities	$ 5,833	$ 4,748		23%	$ 4,207		39%
  Shareholders' equity	$ 645	$ 599		8%	$ 532		21%
  Assets under management1	$ 7,766	$ 5,989		30%	$ 5,255		48%
  Capital Ratios
  Income tax assets to capital ratio2	5.10	5.24		(3%)	5.52		(8%)
  CET 1 & Tier 1 capital ratio 4	18.82 %	19.02	%	(0.20%)	17.61	%	1.21%
  Total capital ratio 4	19.14 %	19.28	%	(0.14%)	17.91	%	1.23%
  Leverage ratio 3	8.61 %	9.72	%	(1.11%)	9.49	%	(0.88%)
  Credit Quality
  Impaired mortgage ratio (non-securitized) 1	1.69 %	2.46	%	(0.77%)	3.26	%	(1.57%)
  Impaired mortgage ratio (total) 1	0.70 %	1.25	%	(0.55%)	1.82	%	(1.12%)
  Mortgage Arrears
  Non-securitized	$ 117,737	$ 96,368		22%	$ 112,789		4%
  Securitized	13,855	4,103		238%	4,661		197%
  Total	$ 131,592	$ 100,471		31%	$ 117,450		12%
  Common Share Information (end of period)
  Number of common shares outstanding	40,471	38,717		5%	35,432		14%
  Book value per common share 1	$ 15.93	$ 15.48		3%	$ 15.01		6%
  Common share price - close	$ 22.43	$ 18.25		23%	$ 15.89		41%
  Market capitalization ($ million)	$ 908	$ 707		28%	$ 563		61%

  1 Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this MD&A. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

  2 For further information refer to the "Taxable Income" and "Income Tax Capital" sections of this MD&A. Tax balances are calculated in accordance with the Tax Act.

  3 This measure has been calculated in accordance with OSFI's Leverage Requirements guidelines. Mortgages securitized through the market MBS program and CMB program for which derecognition has not been achieved are included in regulatory assets in the leverage ratio. For further information, refer to the "Capital Management" section of this MD&A.

  4 These measures have been calculated in accordance with OSFI's Capital Adequacy Requirements guidelines.

  Table 2: Financial Statement Highlights - Quarterly

  (in thousands except per share amounts, % and where indicated)	Q4 2025	Q3 2025 Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024
  Income Statement Highlights
  Net interest Income	$24,664	$23,760 $23,662 $23,753 $24,661 $23,935 $23,818 $23,989
  Equity income from MCAP Commercial LP	$7,780	$10,361 $9,732 $5,571 $7,227 $6,667 $7,726 $7,183
  Net gain (loss) on securities	$ 924	$ (320) $ 406 $1,099 $(11,326) $5,671 $ (715) $ 27
  PPPT income1	$22,987	$22,743 $22,977 $19,375 $7,564 $28,194 $21,774 $22,280
  Provision for (recovery of) credit losses	$6,088	$2,056 $2,227 $3,089 $1,160 $1,302 $1,436 $ (640)
  Net income	$17,589	$20,505 $20,187 $16,590 $7,725 $26,892 $19,749 $23,220
  Basic and diluted earnings per share	$ 0.44	$ 0.52 $ 0.51 $ 0.43 $ 0.20 $ 0.70 $ 0.52 $ 0.65
  Dividends per share - cash	$ 0.41	$ 0.41 $ 0.41 $ 0.41 $ 0.39 $ 0.39 $ 0.39 $ 0.39
  Return on average shareholders' equity 1	11.02 %	13.09 % 13.19 % 10.99 % 5.14 % 18.16 % 13.63 % 17.09 %
  Taxable income (loss) per share 2	$ 0.62	$ (0.07) $ 0.22 $ 0.45 $ 0.51 $ 0.25 $ 0.44 $ 0.67
  Spreads
  Spread of non-securitized mortgages over term deposit interest and expenses 1	2.66 %	2.63 % 2.74 % 2.89 % 2.83 % 2.78 % 2.93 % 3.14 %
  Spread of insured securitized mortgages over liabilities 1	0.46 %	0.47 % 0.50 % 0.50 % 0.54 % 0.49 % 0.46 % 0.46 %
  Spread of uninsured securitized mortgages over liabilities 1	2.42 %	2.67 % - % - % - % - % - % - %
  Average term to maturity (in months)
  Mortgages - non-securitized	10.6	9.5 11.3 9.1 9.5 12.9 12.1 11.5
  Term deposits	16.7	16.8 17.7 17.7 18.5 19.1 19.2 18.2
  Balance Sheet Highlights ($ million)
  Total assets	$6,477	$5,909 $5,739 $5,443 $5,348 $5,213 $5,097 $4,894
  Mortgages - non-securitized	$2,480	$2,536 $2,741 $2,545 $2,464 $2,472 $2,500 $2,385
  Mortgages - securitized	$3,459	$2,781 $2,429 $2,354 $2,420 $2,290 $2,170 $2,095
  Total liabilities	$5,833	$5,273 $5,118 $4,836 $4,748 $4,611 $4,512 $4,318
  Shareholders' equity	$ 645	$ 636 $ 621 $ 607 $ 599 $ 602 $ 585 $ 576
  Assets under management1	$7,766	$7,047 $6,655 $6,138 $5,989 $5,712 $5,601 $5,405
  Capital Ratios
  Income tax assets to capital ratio 2	5.10	5.45 5.42 5.41 5.24 5.38 5.34 5.14
  CET 1 & Tier 1 capital ratios 4	18.82 %	19.01 % 18.90 % 19.12 % 19.02 % 19.94 % 19.10 % 19.00 %
  Total capital ratio 4	19.14 %	19.32 % 19.22 % 19.43 % 19.28 % 20.19 % 19.35 % 19.23 %
  Leverage ratio 3	8.61 %	9.27 % 9.32 % 9.64 % 9.72 % 9.99 % 9.85 % 10.11 %
  Credit Quality
  Impaired mortgage ratio (non-securitized) 1	1.69 %	2.61 % 2.34 % 2.31 % 2.46 % 2.26 % 3.50 % 3.42 %
  Impaired mortgage ratio (total) 1	0.70 %	1.25 % 1.25 % 1.20 % 1.25 % 1.19 % 1.90 % 1.83 %
  Mortgage Arrears
  Non-securitized	$117,737	$145,818 $121,647 $105,044 $96,368 $139,427 $136,499 $136,175
  Securitized	$13,855	$6,804 $7,070 $4,757 $4,103 $6,333 $5,278 $6,085
  Total	$131,592	$152,622 $128,717 $109,801 $100,471 $145,760 $141,777 $142,260
  Common Share Information (end of period)
  Number of common shares outstanding	40,471	40,163 39,604 39,128 38,717 38,463 38,153 37,831
  Book value of common share 1	$15.93	$15.85 $15.68 $15.52 $15.48 $15.65 $15.34 $15.24
  Common share price - close	$22.43	$21.69 $19.45 $18.36 $18.25 $17.98 $16.10 $15.73
  Market capitalization ($ million)	$ 908	$ 871 $ 770 $ 718 $ 707 $ 692 $ 614 $ 595

  1 Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this MD&A. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

  2 For further information refer to the "Taxable Income" and "Income Tax Capital" sections of this MD&A. Tax balances are calculated in accordance with the Tax Act.

  3 This measure has been calculated in accordance with OSFI's Leverage Requirements guidelines. Mortgages securitized through the market MBS program and CMB program for which derecognition has not been achieved are included in regulatory assets in the leverage ratio. For further information, refer to the "Capital Management" section of this MD&A.

  4 These measures have been calculated in accordance with OSFI's Capital Adequacy Requirements guidelines.

  Annual Trends

  • For 2025 compared to 2024, our net income reflected significant growth in our assets under management offset by the impact of lower net interest margin from a decline in interest rates. We also had higher income from our investment in MCAP Commercial LP ("MCAP") and higher fair value on our securities partially offset by provisions for credit losses due to uncertainty in the forecasted economic and geopolitical environment. We continued to increase our capital base from our at-the-market equity program ("ATM Program").

  • For 2024 compared to 2023, our net income increased slightly due to growth in our mortgage portfolios, higher equity income from our investment in MCAP, and higher spread on our securitized mortgages. This was partially offset by a lower spread on our non-securitized mortgages in a declining interest rate environment and unrealized losses on our non-marketable securities. Our mortgage assets continued to grow into 2024 compared to 2023 due to higher net origination volumes and solid renewals, supported by growth in our capital base from our overnight marketed offering and our ATM Program.

  • Taxable income per share fluctuations in the three year period are mainly due to growth in our mortgage business and volatility in taxable income recorded from our investment in MCAP due to timing differences between tax and accounting income.

    Quarterly Trends

  • In 2024, we saw the beginning of interest rate cuts which helped initially with a recovery on REIT stock prices; however, Q4 2024 saw larger unrealized losses on our REITS and our non-marketable securities mainly related to the economic environment and its impact on valuations. In 2025, income from MCAP has been higher and we increased our provision for credit losses mainly due to interest provisioning on our impaired construction loans and forward looking macroeconomic impacts in the current economic and geopolitical environment.

  • In Q1 2024, the higher interest rate environment had increased rates in our floating rate residential construction portfolio above their floor rates. We also focused on changing the laddering of the duration of our term deposits which kept average term deposit rates from rising faster than our mortgage rates. This increased our spread of non-securitized mortgages over term deposit interest and expenses. Beginning in Q2 2024, we saw a larger decline in our spread of non-securitized mortgages over term deposit interest and expenses as rates on our non-securitized mortgages fell faster than our term deposits in the declining interest rate environment. In Q4 2024 and Q1 2025, we saw increases in our spread of non-securitized mortgages over term deposit interest and expenses due to our hedging strategies and pricing initiatives which lowered our term deposit costs more than our non-securitized mortgage rates. Beginning in Q2 2025, the decline is mainly due to prime rate cuts impacting our floating rate residential construction loans, with some improvements from new hedging positions in Q4 2025.

  • Common Equity Tier 1 ("CET 1"), Tier 1 Capital and Total Capital to risk-weighted assets ratio reductions are generally due to our growing risk-weighted assets compared to our capital base as we optimize the amount of capital held. In 2024 and 2025, we raised $7 million and $22 million, respectively, of capital through our ATM Program. Improvement to our ratios in Q1 2024 was due to a successful $29 million capital raise by way of an overnight marketed offering. Our Dividend Reinvestment Program ("DRIP") provides us with a reliable source of capital each quarter. All of our capital and leverage ratios are within our internal risk appetite and regulatory guidelines.

  • Mortgage arrears have varied on a quarterly basis given the nature of the 1-30 day arrears. The majority of residential mortgage arrears activity occurs in the 1-30 day category, in which the bulk of arrears are resolved and do not migrate to arrears categories over 30 days. Our greater than 30 days arrears increased in Q4 2025 in our uninsured residential mortgages; however, we believe overall that we have a quality uninsured residential mortgage loan portfolio with an average loan to value ("LTV") of 66.3% at December 31, 2025 based on an industry index of current real estate values. For our residential construction loan arrears, we expect them to be brought current or we have initiated asset recovery programs. We have a strong track record with our default management processes and asset recovery programs as the need arises. Our realized loan losses on our construction portfolio have been negligible.

    ‌BUSINESS OVERVIEW AND OUTLOOK

    We focus over the long term on sustainably growing our business and shareholder returns. We believe that our long-term strategy will continue to serve us well, although we always consider the current market conditions in the execution of that strategy. In the short term, we are focused on managing our shareholder returns in light of continued geopolitical and economic uncertainty. Over the mid-term, our focus is to grow our business and our shareholder returns within our risk appetite, working with our strategic partners, and investing in infrastructure and process improvements to drive efficiencies and operating leverage in all our operations. We believe that our greater than three decade history demonstrates that we are a prudent and disciplined lender to the Canadian residential real estate markets with a strong credit profile with conservative LTV ratios. We have key relationships with our brokers and strategic partners that are foundational to our strategy. This strategy and long-term outlook are based on assumptions learned from our over three decades of experience, our market knowledge, and sources we consider reliable.

    Economic Outlook

    Canadian economic growth is expected to further stabilize with continued job growth and improvement in overall household finances. However, affordability is hurting some Canadians more than others with weakness in certain sectors directly impacted by international trade. The economy overall is showing signs of resilience with modest domestic product ("GDP") per-capita growth, helped by increased government economic support and Bank of Canada rate cuts. Unemployment has likely peaked as improved business confidence suggests hiring demand is stabilizing. The magnitude and duration of any further changes in tariffs on international trade present a risk for the Canadian economy with the potential for weaker GDP and higher unemployment. Most economists believe that interest rates will remain at current levels given uncertainty. Slower immigration growth and an aging population will also create a drag on GDP growth. We expect geopolitical uncertainty and its impact on the

    economy to be the dominant concern for the year ahead.

    Housing Market Outlook

    Housing affordability continues to be a concern across Canada. Pressure on housing prices in some cities and regions will be tempered by the recent interest rate cuts providing some relief to homebuyers in the short-term. In the long term, we believe that the continued supply-demand imbalance for housing will provide upward pressure on sale and home price growth, particularly in and around our core markets of (i) the Greater Toronto Area; (ii) the Capital Region; and (iii) the Greater Vancouver area. Housing affordability and reduced immigration will likely limit some of this growth. Housing affordability (including housing supply) continues to be a critical issue for all levels of government and in all provinces where we do business. The lack of supply of affordable housing is not easily resolved in the short term, as there are multiple factors to building new supply (i.e. local/municipal government processes, skilled labour shortages, increased construction costs including higher construction financing rates, lack of new construction technologies, etc.) that limit how many homes can be built in the short term.

    Business Outlook

    We believe that our business is well structured with its focus on multiple facets of the Canadian residential real estate market and diversified funding. This gives us some flexibility in terms of income generation and allows us to balance the volatility that we may experience at certain points and in certain areas of our business. We believe that there is an opportunity to expand our core businesses without taking on significantly more risk. We will also continue to place an emphasis on investing in our infrastructure and process improvements to drive operating leverage. We will remain nimble, however, in dealing with any market changes or opportunities that may arise in any of our businesses in the short term. With a strong liquidity and capital position, high level of credit quality, and our strategy of continued diversification of our lending portfolio and funding base, we believe we are well positioned for continued growth.

    MCAN Capital Division

    Our MCAN Capital division manages our construction, commercial and uninsured - completed inventory lending portfolios. We expect continued high demand for more affordable housing, which is our main strategy. We have seen growth in the MCAN Capital portfolio, which is over $1.3 billion, and we are building our pipeline to manage runoff from completed projects and maintain controlled growth, despite headwinds in the housing market. We are also looking at new products within the construction and commercial space to further diversify this portfolio. We continue to monitor the entire portfolio and the market very closely, and we will continue to use our credit management practices in the context of the prevailing market. Tariffs on international trade may further increase construction costs. All these factors have, and may continue to have, an impact on the timing of repayments as loans remain outstanding longer; however, they have not changed the overall expected success of these construction projects or the performance of the loans within this portfolio. Our philosophy within our MCAN Capital division is to apply a prudent approach to our underwriting criteria in line with our risk appetite, with a focus on well-located and more affordable residential products, near transit corridors, with experienced borrowers and developers where we have existing relationships. We will continue to remain vigilant in our underwriting and loan management practices and look to onboard new

    borrowers and developers that fit within our lending philosophy.

    MCAN Home Division

    Our MCAN Home division manages our residential lending business. Given the geopolitical and economic environment, our risk management, credit monitoring and assessment activities continue to have a heightened focus in operating our business. We continue to focus on proactively protecting our net interest margins on our residential mortgages with our credit underwriting to ensure that we are adequately compensated for the level of risk we may take. We expect a moderate increase in home purchase activity, and more competition in our market in order to attract what demand is coming in for both originations and renewals; however, the economic impact of the current geopolitical environment remains uncertain. Despite the noted uncertainty, we have continued to grow our business while taking a prudent approach to mortgage originations. We are also looking to further grow our uninsured residential mortgage originations as we scale our new uninsured residential mortgage securitization program with a Canadian Schedule I Chartered bank. In 2025, we securitized $340 million under this program for the first time. This is an integral part of our funding diversification and capital optimization strategy. We remain dedicated to continuously improving our service for our borrowers and the broker community, and as such, we will continue to invest in our current and new systems and business infrastructure to further enhance our service experience. We will also look to expand to other urban markets within Canada. We will continue to keep abreast of the many changes in the market, the regulatory environment and in our portfolios that could impact our business or that could create opportunities in line with our risk appetite.

    MCAN Wealth Division

    Our MCAN Wealth division manages our term deposit business. We issue both retail and wholesale term deposits that are eligible for CDIC deposit insurance that are sourced through a network of independent brokers and financial agents, as well as through our digital direct-to-consumer platform. We expect originations of term deposits to maintain the level of mortgage growth we have achieved. We expect there will continue to be volatility in the Government of Canada bond yield curve and, therefore, volatility in pricing in the term deposit market due to changing demand from interest rate changes and financial institution appetite for term deposits. We continue to look for opportunities to adjust the maturity terms of our term deposits relative to our mortgage portfolio in line with interest rate forecasts. We will continue to utilize our hedging strategies to minimize interest rate risk in this rate environment, particularly if our floating rate construction lending portfolio floats down to floor rates. We will continue to expand our broker networks, grow our direct-to-consumer platform and look for other channels to source term deposits. We have invested in, and expect to continue to invest in, our current and new systems and business infrastructure and processes to drive efficiencies.

    We are expanding and maturing our capital markets, investor relations and funding diversification strategies over the long term to continue our growth. That growth will be dependent on business growth opportunities as well as equity market conditions and shareholder appetite. We will continue to leverage our ATM and DRIP programs, and other share offerings when it makes sense. MCAN's management and Board are committed to proactively and effectively managing and evolving all our strategies, business activities and team members to achieve 10% average annual growth in assets over the long term, 13% to 15% average return on average shareholders' equity, and sustained and prudent dividend growth.

    This Outlook contains forward-looking statements. For further information, refer to the "A Caution About Forward-looking Information and Statements" section of this MD&A.

    ‌HIGHLIGHTS Q4 2025

    • Net income totalled $17.6 million in Q4 2025, an increase of $9.9 million (128%) from $7.7 million in Q4 2024. Our Q4 2025 results were mainly impacted by higher fair value gains on our marketable and non-marketable securities partially offset by higher provisions for credit losses compared to Q4 2024.

    • Pre-provision pre-tax income ("PPPT")1 totalled $23.0 million in Q4 2025, an increase of $15.4 million (204%) from $7.6 million in Q4 2024. PPPT was mainly impacted by the same factor as net income described above excluding provisions for credit losses.

    • Earnings per share totalled $0.44 in Q4 2025, an increase of $0.24 (120%) from $0.20 in Q4 2024.

    • Return on average shareholders' equity1 was 11.02% in Q4 2025, an increase from 5.14% in Q4 2024.

    • Net interest income of $24.7 million was little changed from Q4 2024.

      • Net interest income - non-securitized assets decreased by $0.8 million in Q4 2025 from Q4 2024 as there was a shift from non-securitized to securitized assets of $1.2 million as we securitized uninsured residential mortgages as part of a securitization program sponsored by a Canadian Schedule I Chartered bank. We also had a higher average non-securitized mortgage portfolio balance from mortgage portfolio growth that offset by a reduction in the spread of non-securitized mortgages over term deposit interest and expenses. The decrease in the spread of non-securitized mortgages over term deposit interest and expenses is mainly due to a larger decrease in our mortgage rates, particularly our floating rate residential construction portfolio as prime rates have continued to decline, compared to our term deposits. This was partially offset by residential mortgage pricing initiatives and continuing to manage our interest rate risk through the duration of our term deposit funding and related hedging strategies.

    • Net interest income - securitized assets increased by $0.8 million in Q4 2025 from Q4 2024 due to a higher average securitized mortgage portfolio balance from higher securitization volumes of residential mortgages exceeding maturities. There was also a shift in net interest income from non-securitized to securitized assets as noted above.

  • Provision for credit losses on our portfolio was $6.1 million in Q4 2025 mainly due to interest provisioning on our impaired residential construction loans and growth in our uninsured residential mortgages. We believe that we have a quality uninsured residential mortgage loan portfolio with an average LTV of 66.3% at December 31, 2025. In Q4 2024, we had a provision for credit losses of $1.2 million mainly due to growth in our mortgage portfolio and provisioning on impaired residential construction loans partially offset by improvements to economic forecasts, particularly falling interest rates and a recovery in the housing price index.

  • Equity income from MCAP totalled $7.8 million in Q4 2025, an increase of $0.6 million (8%) from $7.2 million in Q4 2024, which was primarily due to higher securitization income from higher average portfolio balances and lower non-securitized interest expenses as interest rates have declined.

  • Net change in unrealized fair value loss on our marketable securities of $0.2 million in Q4 2025 compared to a $7.8 million net change in unrealized fair value loss in Q4 2024. We continue to realize the benefits of regular cash flows and distributions from these investments.

  • Net realized and change in unrealized fair value gain on our non-marketable securities of $1.1 million in Q4 2025 mainly relating to net gains from updated property valuations as well as actual execution on leasing activities. In Q4 2024, we had a $3.6 million net realized and change in unrealized fair value loss on

    our non-marketable securities investments due to updated property valuations in an uncertain economic environment.

    Fiscal 2025

  • Net income totalled $74.9 million for 2025, a decrease of $2.7 million (3%) from $77.6 million for 2024. Our 2025 results mainly reflected significant growth in our assets under management offset by the impact of lower net interest margin from a decline in interest rates. We also had higher income from our investment in MCAP and higher fair value on our securities partially offset by provisions for credit losses due to uncertainty in the forecasted economic and geopolitical environment.

  • PPPT1 totalled $88.1 million for 2025, an increase of $8.3 million (10%) from $79.8 million for YTD 2024. PPPT was impacted by the same factors as net income described above excluding provisions for credit losses.

  • Earnings per share totalled $1.89 for YTD 2025, a decrease of $0.17 (8%) from $2.06 in 2024.

  • Return on average shareholders' equity1 was 12.07% for 2025 compared to 13.40% in 2024.

  • Net interest income decreased slightly by $0.6 million compared to 2024 as the impact of higher non-securitized assets was offset by lower net interest margins from lower interest rates.

    • Net interest income - non-securitized assets decreased by $3.0 million from 2024 due to a shift in net interest income from non-securitized to securitized assets of $1.9 million. Beginning in 2025, we securitized uninsured residential mortgages as part of a securitization program sponsored by a Canadian Schedule I Chartered bank. In addition, a reduction in the spread of non-securitized mortgages over term deposit interest and expenses was partially offset by a higher average non-securitized mortgage portfolio balance from continued originations and renewals. For 2025, the decrease in the spread of non-securitized mortgages over term deposit interest and expenses is mainly due to the same factors as for Q4 2025 mentioned above.

    • Net interest income - securitized assets increased by $2.4 million from 2024 due to the above noted shift from non-securitized to securitized uninsured assets noted above. In addition, a higher average securitized mortgage portfolio balance from higher securitization volumes of residential mortgages exceeding maturities.

  • Provision for credit losses on our portfolio was $13.5 million for 2025 mainly due to the same factors as Q4 2025 as well as worsening macroeconomic forecasts. For 2024, there was a provision for credit losses of $3.3 million mainly due to the same factors as described for Q4 2024 mentioned above.

  • Equity income from MCAP totalled $33.4 million for 2025, an increase of $4.6 million (16%) from $28.8 million for 2024. For 2025, the increase was mainly due to higher securitization income from higher average portfolio balances and lower non-securitized interest expenses as interest rates have declined.

    Business Activity and Balance Sheet

  • Our mortgage portfolio totalled $5.9 billion at December 31, 2025, a net increase of $622 million (12%) from September 30, 2025 and a net increase of $1.1 billion (22%) from December 31, 2024.

  • Securitized mortgages totalled $3.5 billion at December 31, 2025, a net increase of $678 million (24%) from September 30, 2025 and a net increase of $1.0 billion (43%) from December 31, 2024.

    • Securitized insured residential mortgages totalled $3.1 billion at December 31, 2025, a net increase of $526 million (20%) from September 30, 2025 and a net increase of $727 million (30%) from December 31, 2024. As we have seen favourable securitization spreads, we opted to securitize our insured residential mortgages as opposed to selling them at the commitment stage. Overall, total insured residential mortgage origination volumes are higher supported by outstanding service to our brokers and customers. Further interest rate decreases would help

      first time home buyers, who would be a significant portion of the borrowers of our insured residential mortgages. We use various channels in funding the insured residential mortgage portfolio, in the context of market conditions and net contributions over the life of the mortgages, in order to support our overall business.

    • Securitized uninsured residential mortgages totalled $311 million at December 31, 2025, a net increase of $152 million (95%) from September 30, 2025. Beginning in Q3 2025, we securitized uninsured residential mortgages as part of a securitization program sponsored by a Canadian Schedule I Chartered bank. We plan to grow this portfolio in order to support our overall business and optimize our balance sheet.

  • Non-securitized mortgages totalled $2.5 billion at December 31, 2025, a net decrease of $56 million (2%) from September 30, 2025 and a net increase of $15 million (1%) from December 31, 2024 mainly due to a shift into securitized assets from the launch of our uninsured residential mortgage securitization program in Q3 2025.

    • Construction loan portfolios totalled $1.1 billion at December 31, 2025, a net decrease including repayments of $64 million (5%) from September 30, 2025 and a net increase including repayments of $48 million (4%) from December 31, 2024. The movement in the portfolio is attributed to new loan advances and repayments on completing projects. Originations have been steady this year with some extensions of projects due to normal construction delays or normal delays relating to the permitting and zoning process. To date, projects continue to progress toward completion.

    • Uninsured residential mortgage portfolio totalled $1.0 billion at December 31, 2025, a net decrease of $92 million (9%) from September 30, 2025 and a net decrease of $135 million (12%) from December 31, 2024 from the launch of our uninsured residential mortgage securitization program noted above. Considering both securitized and non-securitized uninsured residential mortgages, total uninsured residential mortgages totalled $1.3 billion and grew by 16% in the year. We continue to see higher uninsured originations and steady uninsured residential mortgage renewals supported by our outstanding service to our brokers and customers. We actively manage origination and renewal volumes in order to optimize our net interest margins and net income.

    Dividend

  • The Board declared a first quarter regular cash dividend of $0.43 per share (an increase of 5% from our fourth quarter 2025 dividend) to be paid March 31, 2026 to shareholders of record on March 13, 2026. As a MIC, we are entitled to deduct the dividends that we pay to shareholders from our taxable income.

    Credit Quality

  • Arrears total mortgage ratio1 was 2.22% at December 31, 2025 compared to 2.87% at September 30, 2025 and 2.06% at December 31, 2024. The majority of our residential mortgage arrears activity occurs in the 1-30 day category, in which the bulk of arrears are resolved and do not migrate to arrears categories over 30 days. Our greater than 30 days arrears has increased in our uninsured residential mortgages compared to last quarter and we believe overall that we have a quality uninsured residential mortgage loan portfolio with an average LTV of 66.3% at December 31, 2025 compared to 65.4% at September 30, 2025 and 63.7% at December 31, 2024 based on an industry index of current real estate values. With respect to our construction loan portfolio, we have a strong track record with our default management processes and asset recovery programs as the need arises.

  • Impaired non-securitized mortgage ratio1 was 1.69% at December 31, 2025 compared to 2.61% at September 30, 2025 and 2.46% at December 31, 2024. At December 31, 2025, impaired mortgages represent impaired construction loans as well as uninsured residential mortgages where asset recovery programs have been initiated or we expect the loans to be brought current. We monitor the delinquency and impairment status of our loans and take appropriate steps with our borrowers to ensure an optimal

    resolution. The decrease in the quarter is mainly due to successful resolution in our impaired construction loans.

  • Impaired total mortgage ratio1 was 0.70% at December 31, 2025 compared to 1.25% at September 30, 2025 and 1.25% at December 31, 2024.

    Capital

  • We manage our capital and asset balances based on the regulations and limits of both the Income Tax Act

    (Canada) (the "Tax Act") and the Office of the Superintendent of Financial Institutions Canada ("OSFI").

  • We have a Base Shelf prospectus allowing us to make certain public offerings of debt or equity securities during the period that it is effective, through Prospectus Supplements. We have an ATM Program, established pursuant to a Prospectus Supplement to our Base Shelf prospectus, allowing us to issue up to

    $75 million common shares to the public from time to time at the market prices prevailing at the time of sale. We issued $6.8 million in new common shares through the ATM Program in Q4 2025 compared to

    $4.1 million in Q4 2024. In 2025, we issued $23.4 million compared to $7.4 million in 2024. The volume and timing of distributions under the ATM Program are determined at MCAN's sole discretion.

  • We issued $9.4 million in new common shares through the Dividend Reinvestment Plan ("DRIP") in 2025 compared to $14.8 million in 2024. The DRIP participation rate for 2025 dividends was 15% compared to 22% in 2024.

  • Income tax assets to capital ratio3 was 5.10 at December 31, 2025 compared to 5.45 at September 30, 2025 and 5.24 at December 31, 2024.

  • Common Equity Tier 1 ("CET 1") and Tier 1 Capital to risk-weighted assets ratios2 were 18.82% at December 31, 2025 compared to 19.01% at September 30, 2025 and 19.02% at December 31, 2024. Total Capital to risk-weighted assets ratio2 was 19.14% at December 31, 2025 compared to 19.32% at September 30, 2025 and 19.28% at December 31, 2024. Leverage ratio2 was 8.61% at December 31, 2025

compared to 9.27% at September 30, 2025 and 9.72% at December 31, 2024. All of our capital and leverage ratios are within our regulatory and internal risk appetite guidelines.

1 Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this MD&A. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

2 These measures have been calculated in accordance with OSFI's Leverage Requirements and Capital Adequacy Requirements guidelines.

3 For further information refer to the "Income Tax Capital" section of this MD&A. Tax balances are calculated in accordance with the Tax Act.

‌RESULTS OF OPERATIONS

Table 3: Net Income

Net Interest Income - Non-Securitized Assets

Mortgage Interest Income Table 4: Net Mortgage Interest Income and Average Rate by Mortgage Portfolio - Quarterly Table 5: Net Mortgage Interest Income and Average Rate by Mortgage Portfolio - Annual

1 Considered to be a Non-GAAP and other financial measure. The net non-securitized mortgage spread income and the spread of non-securitized mortgages over term deposit interest and expenses are indicators of the profitability of income earning assets less the cost of funding. Net non-securitized mortgage spread income is calculated as the difference between non-securitized mortgage interest and term deposit interest and expenses, both of which are IFRS measures. Average rate is equal to income/expense divided by the average balance over the period on an annualized basis. Income/expense incorporates items such as penalty income, commitment fee income, origination expense, commission expense and term deposit hedging gains or losses. The average rate as presented may not necessarily be equal to "Income/Expense" divided by "Average Balance", as non-recurring items such as prior period adjustments are excluded from the calculation of the average rate as applicable. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this MD&A. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

Table 6: Mortgage Originations

1 Construction, commercial and completed inventory originations represent all advances on loans.

2 Includes residential mortgage commitments sold that the Company originated.

Overview

For Q4 2025 and the year ended 2025, the decrease in the spread of non-securitized mortgages over term deposit interest and expenses compared to Q4 2024 and the year ended 2024 is due to the decrease in our mortgage rates, mainly in our floating rate residential construction portfolio as prime rates have declined 250 bps since mid-2024, generally exceeding the pace of decrease in our average term deposit rates and related hedges due to the timing of new hedging positions. For Q4 2025 compared to Q3 2025, we have seen a slight improvement in our spread as a result of our hedging strategies. We actively manage our interest rate risk by continually reviewing, and if necessary, changing the laddering of the duration of our term deposits relative to our non-securitized mortgage portfolio as well as utilizing our hedging strategies to lock-in spreads. For information on our term deposit fair value hedging, see "Derivatives and Hedging" sub-section below.

Residential Mortgage Lending

Residential mortgages provide comparatively lower yields than construction and commercial loans given their risk profile, with uninsured residential mortgages providing higher yields than insured residential mortgages. We opportunistically invest in our residential uninsured - completed inventory portfolio which often migrate from our own construction book.

Excluding residential mortgages uninsured - completed inventory, which is invested in opportunistically as deals arise, total residential mortgage origination volumes in 2025 were higher compared to Q4 2024 and YTD 2024 as rates have begun to decline in the current environment, as well as our outstanding service to our brokers and customers. We also saw steady uninsured residential mortgage renewals as borrowers continue to find it more convenient to stay with their existing lender in the current market environment.

Our insured adjustable rate residential mortgage product also saw an increase in the current year, as many borrowers believe that interest rates have peaked and that there could be further interest rate cuts this year. Of note, unlike traditional insured variable rate mortgages, payments on our insured adjustable rate residential mortgages change as interest rates move with no changes to loan amortization. We also underwrite our insured adjustable rate mortgages for credit quality accordingly and our borrowers expect their payments under this product to change as interest rates change.

We continue to enhance our internal sales and marketing capabilities, and strengthen relationships and customer service with the broker community. We will continue to invest in new technology and add new products that fit within our risk appetite to further enhance our service experience and broaden our offering to our customers.

We have agreements whereby we can sell our (i) insured and uninsured residential mortgage commitments; and (ii) uninsured residential mortgage whole loans. We originated and sold $34 million in commitments in Q4 2025 (Q3 2025 - $19 million; Q4 2024 - $15 million) and $106 million in 2025 (2024 - $16 million) under these agreements. In 2025, we sold $21 million of uninsured residential mortgage whole loans (2024 - $45 million).

We securitize our insured residential mortgages opportunistically through the CMHC National Housing Act ("NHA") Mortgage-Backed Securities ("MBS") program. Our Q4 2025 insured residential mortgage securitization volumes were $757 million (Q3 2025 - $392 million; Q4 2024 - $211 million) and $1,413 million in 2025 (2024 - $803 million). As we have seen favourable securitization spreads, we opted to securitize our insured residential mortgages as opposed to selling them at the commitment stage. Overall, total insured residential mortgage origination volumes are higher supported by outstanding service to our brokers and customers. Further interest rate decreases would help first time home buyers, who would be a significant portion

of the borrowers of our insured residential mortgages. Renewals of securitized mortgages fluctuate each period depending on the maturities in the securitization portfolio.

Beginning in 2025, we securitized uninsured residential mortgages as part of a securitization program sponsored by a Canadian Schedule I Chartered bank. Uninsured residential mortgage securitization volumes were $176 million in Q4 2025 (Q3 2025 -

$163 million) and $340 million in 2025. We plan to grow this portfolio in order to support our overall business and optimize our balance sheet.

Mortgage Renewal Rights

Through our origination platform, we retain the renewal rights to internally originated residential mortgages that are held as non-securitized or securitized mortgages or have been sold to third parties and derecognized from the consolidated balance sheet. At maturity, we have the right to renew these mortgages, which we believe will contribute to future income including renewal income. At December 31, 2025, we had the renewal rights to $4.1 billion of residential mortgages (September 30, 2025

- $4.0 billion; December 31, 2024 - $3.6 billion).

Construction and Commercial

We continue to focus on growing our balances in our residential construction portfolio in selected markets, with our preferred borrowers and risk profile as they tend to provide comparatively higher yields given their risk profile. For Q4 2025 and the year ended 2025 compared to Q3 2025, Q4 2024 and the year ended 2024, the decrease in average rates is mainly due to Bank of Canada interest rate cuts reducing our mostly floating rate construction loans and competitive pricing for quality deals. Higher average balances offset by lower average residential construction rates from the declining interest rate environment contributed to a slightly lower non-securitized mortgage interest compared to prior periods. Since this portfolio is entirely at prime-based floating rates, we are utilizing our hedging strategies on term deposits to manage spreads on our construction and commercial loans in a decreasing interest rate environment. For information on our term deposit fair value hedging, see "Derivatives and Hedging" sub-section below.

Some projects may experience construction delays for a variety of factors including extended permitting, presale or contracting activities given the current state of the housing market. To date, projects continue to progress toward completion within our expected margins. Current impaired construction mortgages include mortgages where asset recovery programs have already been initiated. We have a strong track record with our default management processes and asset recovery programs as the need arises. Our realized loan losses on our construction portfolio have been negligible. Our prudent underwriting approach requires satisfactory borrower liquidity, guarantor net worth and presale requirements as applicable to the respective markets.

Term Deposit Interest and Expenses

The reduction in term deposit interest and expenses for Q4 2025, Q3 2025, and YTD 2025 compared to prior year periods was mostly due to lower average term deposit rates and related hedges from a declining interest rate environment. We have been actively managing our interest rate risk during this period of changing interest rates by changing the laddering of the duration of our term deposits relative to our non-securitized mortgage portfolio and utilizing hedging strategies. Term deposit expenses include costs related to insurance, operating infrastructure and administration. For information on our term deposit fair value hedging, see "Derivatives and Hedging" sub-section below.

Derivatives and Hedging

Cash Flow Hedging

We may enter into Government of Canada bond forward contracts to hedge interest rate risk arising from the impact of (i) movements in interest rates between the time insured residential mortgages are funded and the time that these mortgages are securitized; and (ii) movements in interest rates between the time term deposit funding is forecasted to be required and the time that the actual funding occurs. Hedges are structured such that the fair value movements of the hedge instruments offset, within a reasonable range, the changes in fair value of either the pool of fixed-rate mortgages or term deposits due to interest rate fluctuations. The term of our cash flow hedges is generally less than 60 days. The derivative instruments are settled at either the time of securitization or funding of the term deposits, as applicable. We apply cash flow hedge accounting to these derivative transactions with the intention to recognize the effective matching of the gain or loss on the derivative transactions with the recognition of the related interest expense for either the securitization or term deposit funding.

At December 31, 2025, we had $0.2 million of unrealized fair value gains on derivatives financial assets outstanding relating to cash flow hedges (September 30, 2025 - $nil; December 31, 2024 - $nil) on our consolidated balance sheets. In Q4 2025, we had net fair value gains of $0.7 million (Q3 2025 - $0.2 million fair value losses; Q4 2024 - $nil fair value gains), and in 2025, we had net fair value gains of $1.1 million (2024 - $1.9 million fair value losses) on our derivative transactions recognized in accumulated other comprehensive income.

Fair Value Hedging

We may enter into interest rate swaps to hedge interest rate risk arising from fair value changes in our fixed-rate term deposits due to movements in interest rates. Hedges are structured such that the fair value movements of the hedge instruments offset, within a reasonable range, the changes in fair value of the pool of term deposits due to interest rate fluctuations. The terms of our fair value hedges are generally less than two years but may go up to five years. The derivative instruments are settled at the time of maturity of the pool of term deposits. We apply fair value hedge accounting to these derivative transactions with the intention to recognize the effective matching of the fair value gain or loss on the derivative transactions with the fair value gain or loss on the pool of term deposits, within a reasonable range. Any unmatched fair value is recorded in term deposit interest and expenses as hedge ineffectiveness.

At December 31, 2025, the Company had $1.7 million of net unrealized fair value gains on derivatives outstanding relating to fair value hedges (September 30, 2025 - $4.4 million gains; December 31, 2024 - $2.5 million gains).

Achieving hedge accounting for both our cash flow and fair values hedges allows us to reduce our net income volatility related to changes in interest rates. All of our derivative transactions are with highly rated Canadian financial institutions.

For further information, refer to Note 13 to the consolidated financial statements.

Net Interest Income - Securitization Assets

Net investment income from securitization assets relates to (i) our participation in the market MBS program and the Canada Housing Trust ("CHT") Canada Mortgage Bonds ("CMB") program; and (ii) an agreement with a Canadian Schedule I Chartered bank to participate in an uninsured residential mortgage securitization program sponsored by the bank. Under this agreement, we can sell qualifying uninsured residential mortgages that meet certain requirements into the program and they remain in the program until maturity. We securitize our residential mortgages opportunistically through these programs.

As securitization spreads continue to be favourable, we expect to continue to be aggressive in originating insured and uninsured residential mortgages for securitization.

For further information on our securitization programs, refer to the "Financial Position" section of this MD&A.

1 Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this MD&A. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

Table 7: Net Mortgage Interest Income and Average Rate for Securitized Mortgage Portfolio - Quarterly Table 8: Net Mortgage Interest Income and Average Rate for Securitized Mortgage Portfolio - Annual

1 Considered to be a non-GAAP and other financial measure. The net securitized mortgage spread income and spread of securitized mortgages over liabilities are indicators of the profitability of securitized assets less securitized liabilities. Net securitized mortgage spread income is calculated as the difference between securitized mortgage interest and interest on financial liabilities from securitization, both of which are IFRS measures. Average rate is equal to income/expense divided by the average balance over the period on an annualized basis. Income/expense incorporates items such as penalty income, indemnity expense and cash flow hedging gain/loss. The average rate as presented may not necessarily be equal to "Income/Expense" divided by "Average Balance", as non-recurring items such as prior period adjustments are excluded from the calculation of the average interest rate, as applicable. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this MD&A. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

In 2025, we have seen spreads little changed on insured securitizations compared to prior periods, although movements can occur from volatility in the current economic environment. Our spreads on our uninsured securitizations remain favourable. Over the long-term, we expect these uninsured securitization spreads to normalize in-line with our non-securitized uninsured residential mortgages.

Non-interest Income

Equity Income from MCAP

In Q4 2025, MCAP's origination volumes were $5.5 billion, a decrease from $6.3 billion in Q4 2024. For 2025, MCAP's origination volumes were $23.9 billion, an increase from $22.7 billion in 2024. At November 30, 2025 (we account for MCAP on a one-month lag basis), MCAP had $155.8 billion of assets under management compared to $157.1 billion at August 31, 2025 and

$154.6 billion at November 30, 2024. Equity income from MCAP totalled $7.8 million in Q4 2025, an increase of $0.6 million from $7.2 million in Q4 2024. For Q4 2025, the increase in equity income from MCAP was primarily due to higher securitization income from higher average portfolio balances and lower non-securitized interest expenses as interest rates have declined. For fiscal 2025, equity income from MCAP totalled $33.4 million, an increase of $4.6 million from $28.8 million in 2024. For fiscal 2025, the increase in equity income from MCAP was due to the same factors as for Q4 2025 mentioned above.

We recognize equity income from MCAP on a one-month lag such that our 2025 equity income from MCAP is based on MCAP's net income for the year ended November 30, 2025. For further information on our equity investment in MCAP, refer to the "Equity investment in MCAP" sub-section of the "Financial Position" section of this MD&A.

Distribution Income from Securities

Non-marketable: We received distribution income from our Real Estate Debt Funds of $1.9 million in Q4 2025 (Q4 2024 - $2.0 million) and $6.8 million in 2025 (2024 - $7.8 million).

Marketable: Marketable securities income consists mainly of distributions from our REIT portfolio. In Q4 2025, we received distributions of $0.7 million from our REITs compared to $0.8 million in Q4 2024. In 2025, we received distributions of $3.2 million from our REITs compared to $3.1 million in 2024.

We continue to realize the benefits of regular cash flows and distributions from these investments. For further information, refer to the "Other Non-securitized Assets" section of this MD&A.

Fees

Fee income can vary between quarters given the fact that certain fees such as loan amendment and extension fees do not occur on a routine basis.

Net Gain (Loss) on Securities

In Q4 2025, we recorded a net change in unrealized fair value loss on our marketable securities of $0.2 million in Q4 2025 compared to a $7.8 million net unrealized fair value loss in Q4 2024. In fiscal 2025, we recorded a net realized and unrealized fair value gain on our marketable securities of $3.5 million compared to a $0.8 million net unrealized fair value gain for 2024. In 2025, we saw REIT prices increase marginally due to continued economic uncertainty despite a declining interest rate environment. We continue to realize the benefits of regular cash flows and distributions from these investments.

In Q4 2025, we recorded a net realized and change in unrealized fair value gain on our non-marketable securities of $1.1 million in Q4 2025 compared to a $3.6 million net realized and change in unrealized fair value loss in Q4 2024 both consisting of gains and losses from certain underlying property investments as a result of (i) updated appraisals/property valuations, net of related property debt and debt service costs; and (ii) actual executions on construction and leasing stabilization and value-add activities. In Q4 2025, we had a $0.5 million realized gain related to the sale of an underlying property. For fiscal 2025, we recorded a net realized and change in unrealized fair value loss on our non-marketable securities of $1.4 million mainly related to the same factors as for Q4 2025 mentioned above. For fiscal 2024, we had a $7.1 million net realized and change in unrealized fair value loss on our non-marketable securities investments due to the same factors as described for Q4 2024 mentioned above. Our non-marketable securities are either held for long-term capital appreciation or distribution income. Our real estate development fund investments tend to have less predictable cash flows that are predicated on the completion of the development projects within these funds.

Gain on Dilution of Investment in MCAP

In Q4 2025 and fiscal 2025, MCAP issued no additional class B units to team members of MCAP. In Q2 2024, MCAP issued additional class B units to team members of MCAP which decreased our equity interest. As a result of the issuance of new units at prices in excess of the per-unit carrying value of the investment, we recorded a dilution gain of $0.7 million in the prior year.

Provision for (Recovery of) Credit Losses

Table 9: Provision for (Recovery of) Credit Losses and Write-offs

Provisions are based on a statistical modelling methodology incorporating both internal portfolio characteristics and forward-looking macroeconomic information. Loans are segmented into homogenous risk bands based on internal risk characteristics including (but not limited to) credit scores, delinquency history, loan type and location. Historical regression methodology is used to relate expected credit loss ("ECL") to key macroeconomic indicators including house price indices, unemployment rates, interest rates and gross domestic product. Economic forecasts of these variables are then used to produce forward-looking estimates of ECL under multiple scenarios. Scenarios are probability weighted by management to obtain an aggregated forward looking view. Additionally, we may incorporate management judgment, where appropriate, in the calculation of provisions. Accordingly, provisions are expected to vary between periods.

We had a provision for credit losses on our portfolio of $6.1 million in Q4 2025, which was mainly due to interest provisioning on our impaired residential construction loans and growth in our uninsured residential mortgages. In Q4 2024, we had a provision for credit losses of $1.2 million mainly due to growth in our mortgage portfolio and provisioning on impaired residential construction loans partially offset by improvements to economic forecasts, particularly falling interest rates and a recovery in the housing price index. We had a provision for credit losses on our portfolio of $13.5 million for the year ended 2025 and $3.3 million for the year ended 2024 mainly due to the same factors as described for Q4 2025 and Q4 2024, respectively, as well as changes to macroeconomic forecasts. The current geopolitical environment has increased the level of uncertainty with respect to management's judgments and estimates including the probability weights assigned to each scenario, the impacts of monetary policy on macroeconomic indicators and the mortgage portfolio. These judgments and uncertainties have been made or assessed with reference to the facts, projections and other circumstances at December 31, 2025. IFRS 9, Financial Instruments ("IFRS 9") does not permit the use of hindsight in measuring provisions for credit losses. Since December 31, 2025, forecasts around these uncertainties have continued to evolve. Any new forward-looking information subsequent to December 31, 2025, will be reflected in the measurement of provisions for credit losses in future periods, as

appropriate. This may add significant variability to provisions for credit losses in future periods. We continue to monitor our portfolio in arrears on a regular basis to detect specific significant stress or deterioration.

Non-interest Expenses

Table 10: Non-interest Expenses

The slight decrease in salaries and benefits in 2025 is mainly due to lower share-based payment accruals and severance accruals partially offset by additional resources and regular pay increases.

The increase in general and administrative expenses in 2025 is primarily due to higher mortgage servicing expenses from growth in our loan portfolios and our new office lease and leasehold improvements.

Taxable Income

The table below provides a reconciliation between consolidated net income (loss) for accounting purposes and non-consolidated taxable income (loss). Taxable income is calculated in accordance with the Tax Act. In order to take advantage of the tax benefits of our MIC status, we pay out all of MCAN's non-consolidated taxable income to shareholders through dividends. As a MIC, we are entitled to deduct dividends paid up to 90 days after year end from taxable income. Dividends that are deducted in the calculation of taxable income are not included in the table below.

Table 11: Taxable Income Reconciliation

1 Taxable income is presented above on a non-consolidated basis for the MIC entity. The current year amounts presented above represent estimates as they are not finalized until the completion of our corporate tax filings.

2 Provisions on performing mortgages are excluded from the calculation of taxable income; provisions on impaired mortgages are 90% deductible for tax purposes.

3 Securitization program mortgage origination costs are deductible in full for tax purposes as mortgages are securitized but are capitalized and amortized for accounting purposes. Therefore, amortization is added back in the calculation of taxable income.

4 Excluded from the calculation of taxable income; only includes net realized gains and losses recognized in the MIC entity.

5 Represents the component of consolidated income that is earned outside of the MIC entity, therefore excluded in the calculation of taxable income.

6 Not recognizable in the calculation of taxable income.

Taxable income for YTD 2025 compared to YTD 2024 was lower due to lower taxable income from our investment in MCAP partially offset by the taxable capital gain recognized on an internal reorganization of our equity investment in MCAP. As a MIC, we pay out at least all of our taxable income to shareholders through dividends.

‌FINANCIAL POSITION

Assets

Table 12: Assets

Our total assets increased compared to September 30, 2025 and December 31, 2024 primarily due to origination volumes, including renewal activity in our residential mortgage portfolio, outpacing maturities.

In selecting residential construction projects to finance, we focus more on the affordable segments of the housing market, such as first time and move up homebuyers. These segments are characterized by affordable price points, lower price volatility and steady sales volumes based on continued family formation and migration primarily in major urban markets and their surrounding areas in proximity to transit. We focus on a diverse portfolio of predominantly first mortgage positions with 65-75% LTVs in our normal segment of lending. At December 31, 2025, the average outstanding construction loan balance was

$11 million (September 30, 2025 - $11 million; December 31, 2024 - $11 million) with a maximum individual loan commitment of $40 million (September 30, 2025 - $40 million; December 31, 2024 - $38 million).

Securitized Mortgages

Securitization assets consist of (i) insured residential mortgages that have been securitized through our internal market MBS program and the CHT CMB program. We are an NHA MBS issuer, which involves the securitization of insured mortgages to create MBS; and (ii) uninsured residential mortgages securitized through a securitization program sponsored by a Canadian Schedule I Chartered bank. We can sell qualifying uninsured residential mortgages that meet certain requirements into the program and they remain in the program until maturity. Securitization is an integral part of our diversification and capital optimization strategy.

For further information, refer to Note 11 to the consolidated financial statements.

We securitized $757 million in Q4 2025 (Q3 2025 - $392 million; Q4 2024 - $211 million) and $1.4 billion in 2025 (2024 - $803 million) of insured residential mortgages through the market MBS program and CMB program. Overall, total insured residential mortgage origination volumes are higher supported by outstanding service to our brokers and customers. Further interest rate decreases would help first time home buyers, who would be a significant portion of the borrowers of our insured residential mortgages.

We may issue market MBS through the NHA MBS program and retain the underlying MBS security for liquidity purposes rather than selling the MBS to a third party. At December 31, 2025, we held $38 million of retained MBS on our balance sheet (September 30, 2025 - $39 million; December 31, 2024 - $46 million), which is included in the insured residential mortgage portfolio in non-securitized mortgages.

We securitized $128 million in Q4 2025 (Q3 2025 - $217 million; Q4 2024 - $94 million) and $604 million in 2025 (2024 - $94 million) of insured multi-family mortgages through the CMB program. At the time of the insured multi-family securitization, the Company derecognized the mortgages from its balance sheet and recorded a gain on the sale of the mortgages of $0.5 million in Q4 2025 (Q4 2024 - $0.1 million) and $2.0 million in 2025 (2024 - $0.1 million).

We securitized $176 million in Q4 2025 (Q3 2025 - $163 million) and $340 million in 2025 of uninsured residential mortgages through a securitization program sponsored by a Canadian Schedule I Chartered bank. Under this program, we can sell qualifying uninsured residential mortgages that meet certain requirements into the program and they remain in the program until maturity.

Any mortgages securitized through the market MBS program, CMB program or bank-sponsored uninsured securitization program for which derecognition is not achieved remain on the consolidated balance sheet as securitized assets and are also included in total exposures in the calculation of our leverage ratio. However, for income tax purposes, all mortgages securitized by MCAN are excluded from income tax assets. For further details on total exposures, regulatory capital and income tax assets and capital, refer to the "Capital Management" section of this MD&A.

Table 13: Mortgage Summary Table 14: Non-securitized Mortgage Portfolio Continuity for Year to Date 2025

1 includes originations, including (i) insured and uninsured residential mortgage commitments originated and sold; (ii) acquisitions; (iii) renewals; and (iv) transfers in from our securitization portfolio.

Table 15: Non-securitized Mortgage Portfolio Continuity for Year to Date 2024

(in thousands) Residential Mortgages

Uninsured -

Insured Uninsured

completed inventory

Construction

loans

Commercial

loans Total

1 includes originations, including insured residential mortgage commitments originated and sold, renewals and transfers in from our securitization portfolio.

We continue to be selective and will reposition our loan portfolio in terms of product composition, geographic mix and exposure as required to meet changing market conditions and align to our risk appetite. We have strong strategic partnerships and relationships and we maintain a high quality of underwriting. We have also enhanced our internal sales and marketing capabilities, strengthened relationships and customer service with the broker community and increased underwriting capacity. We continue to focus on our construction and commercial portfolio growing it in selected markets, with our preferred borrowers and risk profile given they tend to provide higher yields compared to our residential mortgages.

Figure 1: Total Mortgage Portfolios (in thousands)

$3,500,000

$3,250,000

Net Principal

$3,000,000

$2,750,000

$2,500,000

$2,250,000

$2,000,000

$1,750,000

Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025

Non-securitized Securitized

Figure 2: Mortgage Portfolio Composition by Product Type (in thousands)

$3,250,000

$3,000,000

$2,750,000

$2,500,000

Net Principal

$2,250,000

$2,000,000

$1,750,000

$1,500,000

$1,250,000

$1,000,000

$750,000

$500,000

$250,000

$0

Construction loans

Residential mortgages uninsured

Residential mortgages insured

Commercial loans multi family residential

Residential mortgages uninsured -completed inventory

Residential mortgages uninsured -securitized

Residential mortgages insured -securitized

Note: Amounts in parentheses represent the percentage of the mortgage portfolio represented by the individual product type.

Table 16: Mortgage Portfolio Geographic Distribution

Credit Quality

Table 17: Arrears and Impaired Mortgages

1 Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this MD&A. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

Figure 3: Arrears and Impaired Mortgage Ratios1

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

Dec 2023 Mar 2024 Jun 2024 Sep 2024 Dec 2024 Mar 2025 Jun 2025 Sep 2025 Dec 2025

Impaired Non-securitized Mortgage Ratio Impaired Total Mortgage Ratio Arrears Total Mortgage Ratio

The majority of our residential mortgage arrears activity occurs in the 1-30 day category, in which the bulk of arrears are resolved and do not migrate to arrears categories over 30 days. While greater than 30 days arrears has increased in our uninsured residential mortgages, we believe overall that we have a quality uninsured residential mortgage loan portfolio with an average LTV of 66.3% at December 31, 2025 based on an industry index of current real estate values. With respect to our construction loan portfolio, we have a strong track record with our default management processes and asset recovery programs as the need arises. The impaired ratios, as presented above, reflect impaired (stage 3) mortgages under IFRS 9 as a percentage of the non-securitized or total mortgage portfolios, as applicable. At December 31, 2025, impaired mortgages are mainly construction mortgages as well as uninsured residential mortgages where asset recovery programs have been initiated or we expect the loans to be brought current. We monitor the delinquency and impairment status of our loans and takes appropriate steps with our borrowers to ensure an optimal resolution. Our realized loan losses on our construction portfolio have been negligible.

In the event of a protracted economic downturn due to the current geopolitical conflicts, or for any other reason, we would expect to observe an increase in overall mortgage default and arrears rates as realization periods on collateral become longer and borrowers adjust to the new economic conditions and potentially changing real estate values in such an event. An economic downturn could also result in an increase in our allowance for credit losses. MCAN utilizes a number of risk assessment and mitigation strategies to lessen the potential impact for loss on residential mortgages; however, traditional actions may not be available or effective.

For further information regarding non-securitized mortgages by risk rating, refer to Note 7 to the consolidated financial statements.

1 Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this MD&A. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

Additional Information on Residential Mortgages and Home Equity Lines of Credit ("HELOCs")

In accordance with OSFI Guideline B-20 - Residential Mortgage Underwriting Practices and Procedures, additional information is provided on the composition of MCAN's residential mortgage portfolio by insurance status and province, as well as amortization periods and LTV by province. LTV is calculated as the ratio of the outstanding loan balance on an amortized cost basis to the value of the underlying collateral at the time of origination.

Insured mortgages include individual mortgages that are insured by CMHC or other approved mortgage insurers at origination and mortgages that are portfolio-insured after origination. Uninsured mortgages include both residential uninsured and residential uninsured - completed inventory loans.

The HELOC balances displayed below relate to insured residential mortgages that were acquired by MCAN previously. We do not originate HELOCs at this time.

Table 18: Residential Mortgages by Province at December 31, 2025 Table 19: Residential Mortgages by Province at December 31, 2024

(in thousands except %)

Non-securitized Securitized

Insured % Uninsured % HELOCs % Insured % Total %

Table 20: Residential Mortgages by Amortization Period at December 31, 2025 Table 21: Residential Mortgages by Amortization Period at December 31, 2024 Table 22: Average LTV Ratio for Uninsured Residential Mortgage Originations Table 23: Average LTV Ratios at Origination by Mortgage Portfolio

1 MCAN's non-securitized uninsured residential mortgage portfolio (including completed inventory loans) is secured with a weighted average LTV at origination of 69.0% at December 31, 2025 (December 31, 2024 - 68.7%). Based on an industry index that incorporates current real estate values, the ratios would be 66.3% at December 31, 2025 (December 31, 2024 - 63.7%).

Other Non-securitized Assets

Cash and Cash Equivalents

At December 31, 2025, our cash balance was $80 million (September 30, 2025 - $142 million; December 31, 2024 - $62 million). As part of liquidity management, we align our liquidity position to our liquidity and funding requirements. Cash and cash equivalents, which include cash balances with banks and overnight term deposits, provide liquidity to meet maturing term deposits and new mortgage funding commitments. We actively manage our cash and cash equivalents in the context of our prudent liquidity and cash management practices. See "Liquidity and Funding Risk" sub-section of this MD&A.

Marketable Securities

Marketable securities, consisting of REITs and Government of Canada bonds, provide additional liquidity at yields in excess of cash and cash equivalents. We actively manage our portfolio, as appropriate. At December 31, 2025, the portfolio balance was

$54 million (September 30, 2025 - $54 million; December 31, 2024 - $66 million). In 2025, we sold $16 million of REITs for a realized gain of $2.6 million. We continue to realize the benefits of regular cash flows and distributions from these investments.

Non-marketable Securities

At December 31, 2025, our non-marketable securities balance was $127 million (September 30, 2025 - $125 million; December 31, 2024 - $117 million). The movement to our security balance from the beginning of the year mainly relates to funding of capital advances and a $1 million net realized and unrealized loss consisting of gains and losses from certain underlying property investments as a result of (i) updated appraisals/property valuations, net of related property debt and debt service costs; and (ii) actual executions on construction and leasing stabilization and value-add activities. Our non-marketable securities are either held for long-term capital appreciation or distribution income. Our real estate development funds tend to have less predictable cash flows that are predicated on the completion of the development projects within these funds. We have $40 million in remaining capital advances for non-marketable securities expected to fund mainly over the next five years. Some of the real estate funds that we are invested in, have been slower to deploy committed capital than initially expected as finding the right opportunities in the current market environment takes more time.

For further information, refer to Note 8 to the consolidated financial statements.