CMP Mortgage Guide 19.02 by Key Media

A SPARK OF OPTIMISM

Growth opportunities for alternative lenders as the mortgage landscape takes a positive turn

Renewed optimism in Canada’s mortgage market

As the Bank of Canada delivers back-to-back rate cuts, brokers and borrowers are cautiously optimistic about the future. CMP hears expert insights on what lies ahead

CANADA’S MORTGAGE MARKET

is experiencing a period of cautious optimism as recent economic adjustments begin to take shape. The Bank of Canada has implemented two consecutive rate cuts, lowering the policy rate from 4.75% in June 2024 to 4.50% in July. These moves offer a glimmer of hope to mortgage brokers, lenders, and homeowners, who have been grappling with the pressures of higher interest rates in the past year. While inflation concerns persist, the rate reductions signal a potential easing of financial burdens for borrowers and have sparked renewed interest in the housing market. However, tighter lending regulations remain in place, prompting many new buyers to explore alternative lending options. CMP spoke with key industry leaders to gauge their perspectives on the current market dynamics, and their outlook for the months ahead.

What have been the key developments in the mortgage

market over the last six months? Have they aligned with what you expected to see at the start of the year?

Kevin Fettig: The most significant issue has been the payment shock facing mortgage borrowers. While Canadians have been managing these increased payments, arrears rates have been rising, though they are returning to historical norms rather than

MEET THE EXPERTS

Grant Armstrong Director of originations, Community Trust

reaching crisis levels. This budget tightening for homeowners was anticipated at the start of the year, but it’s now posing a risk to the Bank of Canada’s economic outlook. Overall, the market’s trajectory has aligned with expectations, but the impact on homeowners’ budgets is an emerging concern that may influence future economic forecasts.

Armando Diseri: Over the past six months, the mortgage market has seen several key

Armando Diseri Chief sales officer, Alta West Capital

Kevin Fettig President, CMI Financial Group

developments, many of which align with expectations at the start of the year. Rising inflation and economic uncertainties have significantly impacted consumer purchasing power and overall market conditions. As a result, the Bank of Canada and most central banks have halted interest rate increases and have begun discussing potential rate reductions. The housing market has experienced mixed activity, with Ontario and BC slowing down due to higher rates, while regions like Alberta have remained robust. Additionally, there has been an increase in housing inventory and longer market times due to affordability challenges and stricter mortgage qualification criteria. Overall, these developments have largely aligned with the predictions made at the beginning of the year, with a few unexpected fluctuations.

Grant Armstrong: Service remains a crucial element of the mortgage market. We are placing a strong emphasis on delivering exceptional service to both customers and brokers. This commitment is complemented by a concerted effort to leverage advanced technology to support our internal and external partners. This aligns with our expectations, and we anticipate maintaining a strong focus on service quality through 2025.

The Bank of Canada delivered a rate cut in July, with more expected. What impact will this have on alternative lenders, and how should brokers prepare?

Kevin Fettig: With the bank’s neutral rate between 2.25% and 3.25%, there is ample room for further cuts. As market rates decline, alternative lenders will likely reduce their rates, although the most substantial rate reductions will occur within traditional bank lending channels.

Brokers should proactively review their clients’ exit strategies to determine when

“Our flexible approach allows us to better accommodate borrowers who might be excluded by traditional lenders. By evaluating the complete financial picture, we can offer customized mortgage solutions”

Kevin Fettig, CMI Financial Group

they can transition to a traditional lender. By staying informed about rate changes and understanding the timing for borrowers to shift to more favourable lending options, brokers can better serve their clients and help them successfully navigate the evolving mortgage landscape.

Armando Diseri: The rate cut was a welcome relief to consumers, brokers, and lenders alike. This signals more rate cuts to come, incentivizing consumers to re-enter the market and make the purchases they’ve been considering. It also provides relief to those with variable rates and HELOC products. For alternative lenders, it offers the opportunity to provide better pricing for consumers, while maintaining the flexibility to approve those who don’t qualify with traditional regulated institutions.

Grant Armstrong: BOC rates signal changes in the broader market rates. Although variable or adjustable mortgages represent a smaller portion of alternative products, a decline in rates can encourage borrowers to purchase new homes or refinance to improve their financial situation. Brokers need to be diligent in matching the right product to the consumer’s needs.

How can the alternative lending space more effectively compete with the major lenders?

Kevin Fettig: The alternative lending space is a complementary market that provides transitional lending solutions. Our primary focus is on helping borrowers who may not currently meet traditional lending criteria, offering them flexible solutions to help them improve their financial standing. By doing so, we enable these borrowers to eventually transition back to more traditional lenders. Personalized service is a key advantage, as we offer tailored loan products and flexible terms that cater to the unique needs of each borrower. Additionally, we provide faster approval processes and easier access to funds compared to traditional banks, ensuring that borrowers can obtain the financing they need without unnecessary delays. Furthermore, we specialize in solutions for borrowers with unique financial situations, such as self-employed individuals or those with lessthan-perfect credit. By emphasizing these strengths, the alternative lending space can support underserved borrowers and effectively complement the offerings of major lenders.

Armando Diseri: The alternative lending space can more effectively compete with

major lenders by leveraging flexible underwriting criteria to cater to non-traditional borrowers, such as the self-employed. Offering personalized customer service and streamlining the loan application process can attract those seeking quick and efficient solutions. By developing innovative financial products and investing in digital tools to enhance broker experience, alternative lenders can address specific market needs and provide convenience. Competitive pricing, strong relationships with industry professionals, community engagement, and a focus on education and transparency will further differentiate alternative lenders,

helping them capture a significant market share and build lasting customer loyalty.

Grant Armstrong: Our goal is not to compete directly with major prime lenders but to complement their offerings by providing unique services and solutions they cannot. Innovation in delivering the right solutions remains crucial, as does ensuring every borrower has access to the financing they need.

How have you adapted your mortgage products over the last year to stay competitive for

borrowers? What should brokers know about these products?

Kevin Fettig: Borrowers have been under an increasing level of financial stress over the past few years as a result of the rising rate environment. This stress has resulted in many borrowers having lower credit scores than they would have in a stable rate environment. While many lenders focus heavily on Beacon scores, CMI takes a more comprehensive approach. We consider the full story of each borrower, including their income, equity, exit strategy, and other supportive factors, rather than relying solely on Beacon scores.

“The Canadian economy continues to evolve. I’m excited to see how it will change and how the mortgage market will continue to support Canadians with their most important financial decision”

Grant Armstrong, Community Trust

Brokers should know that our flexible approach allows us to better accommodate borrowers who might be excluded by traditional lenders. By evaluating the complete financial picture, we can offer customized mortgage solutions that meet the needs of a wider range of borrowers. This approach not only helps underserved borrowers secure the financing they need but also positions brokers to provide more competitive and comprehensive options to their clients.

Armando Diseri: Yes, we have made several changes to our product suite. Firstly, we have updated our Express product. We are now offering a two-year term instead of a one-year term, with a rate of 7.49%. In the second year of the term, the loan is completely open, allowing customers to pay in full with no prepayment penalty. We made this change because we noticed that clients often need more time to improve their situations to qualify for traditional regulated institutions. Along with the update of our first-mortgage Express product, we have implemented a standard 1% finder’s fee on all first mortgages funded with Alta West. Additionally, we are introducing our Flexline HELOC product, which many of our broker partners have been requesting. With the stability of a fixed rate and flexible terms,

this product is perfect for self-employed individuals or any consumer looking to borrow money or pay down their loan at any time with no penalty, and paying interest only on the outstanding balance.

Grant Armstrong: Community Trust has maintained a consistent approach in both our strategy and products. We have made adjustments in previous years and continue to invest in these enhancements to ensure we offer reliable solutions.

What new technology and tools have you implemented recently to streamline the mortgage application and approval process?

Kevin Fettig: CMI stands out in the Canadian market as one of the few lenders with its own technology platform, which is continually developed to enable best-in-class service in a dynamic and ever-changing marketplace. As one of the largest residential private lenders with over $1 billion in active mortgages, we lead in technology and consistently invest in our platform to reduce pain points for our broker partners. We also have some exciting new projects in the works that are about to launch, which will further enhance the overall experience for brokers and their borrowers.

Armando Diseri: Alta West Capital is updating our underwriting platform, initially introduced in early 2020. We are now enhancing our platform to incorporate our back-office legacy system, providing complete visibility for any loan, from ingestion to payout and everything in between. This upgrade will streamline the adjudication process, enable the introduction of different product lines, and enhance reporting capabilities. These efforts aim to improve both broker and customer experiences.

Grant Armstrong: We take great pride in our “instant” suite of products –InstaValue and Instashare. We are dedicated to ensuring that all our broker partners are aware of these offerings and understand how to leverage them to enhance their service to customers.

What programs or resources do you offer to support brokers? Are there any recent changes that have been made based on broker input?

Kevin Fettig: We continually seek and incorporate broker feedback to enhance our programs, ensuring we provide the most effective support and resources possible.

Our broker partners frequently express their appreciation for our collaborative approach, especially when a borrower faces difficulties. Rather than immediately imposing fees or penalties, we work closely with borrowers to help them get back on track. This approach helps our broker partners to facilitate a smooth exit and enables borrowers to transition to a traditional lender at maturity.

We are also committed to private lending education. We continuously seek new ways to assist brokers and their borrower clients in understanding and navigating the private

lending marketplace. We offer advice on client scenarios and potential solutions, and provide educational opportunities through webinars, seminars at industry events, group and individual learning sessions at brokerage offices, as well as through social media engagement, media commentary, and our regular broker blog series.

To help brokers navigate the everchanging financial landscape, we also provide weekly commentary on the economy, financial and housing markets in our Market Monitor, as well as insight on Canada’s housing crisis in our Housing Affordability Watch.

Armando Diseri: Alta West Capital has always been committed to our broker partners, continually offering education in group settings or on a one-on-one basis. We recognize that our success is based on our broker partners, and are dedicated to assisting in any way possible. One of the new initiatives in 2024 is our Broker Loyalty Program (BLP) 2.0. Prior to 2024, brokers could qualify by funding just two deals in a calendar quarter and earn up to 15 BPS on every funded dollar. In 2024, they still have this great incentive, with the following enhancements:

• If you are a broker who has never funded

a deal with Alta West Capital and you fund your first deal, you automatically qualify for the BLP in that quarter. You do not need to fund a second deal as a qualifier.

• Additionally, with every deal that is funded and qualified within the BLP, Alta West Capital will donate $100 to charity. In the first and second quarters of this year, we have donated $19,900 to charity.

• They will receive exclusive releases of new product offerings prior to getting it launched to everyone in the broker network.

The Broker Loyalty Program is a way for us to recognize our partners. These new enhancements allow new brokers to join the program, get incentivized, receive exclusive releases of product offerings, and indirectly give back to the communities – all by simply funding deals with Alta West Capital.

Grant Armstrong: We continue to provide training to brokers via our Business Development team, and partner with regional and national associations to ensure that every broker has access to education and support. In addition to that, we are one of the only broker-based lenders with a dedicated call centre, Mortgage Advisory, that’s available 8 a.m. to 8 p.m. EST Monday

through Friday to support brokers when and how they need it. This is also augmented by our incredible Community Trust Cafe both online and through our mobile app.

What is your outlook for the Canadian economy and mortgage market over the next 12 to 18 months?

Kevin Fettig: Inflation is on track to drop to 2.5% this year and align with the Bank of Canada’s 2% target by next year. However, housing costs will remain a significant concern, as high mortgage payments are likely to continue constraining consumer spending. Unemployment should top out around

6.5% and stabilize around 6% for the remainder of this year. This is partly due to the cap on temporary residents, which will limit population growth and may contribute to a moderation in rent increases. As a result, while we anticipate some positive developments in inflation and a stabilization in employment, the ongoing pressure from housing costs will continue to impact the mortgage market and broader economic conditions.

Armando Diseri: Over the next 12 to 18 months, the Canadian economy and mortgage market are expected to experience moderate growth amid global uncertainties and domestic challenges. We will have an

election in 2025, and most likely see a government change. Interest rates may see a slight decrease if BOC and other central banks lower rates in response to economic conditions, providing some relief to borrowers. The housing market will likely exhibit regional variations, with robust activity in more affordable areas and slower movement in high-cost regions due to elevated interest rates and affordability issues. Regulatory changes could introduce new lending criteria, impacting the mortgage market. Additionally, alternative lenders like Alta West Capital may gain traction as borrowers seek

for growth in our sector. Overall, while challenges persist, there

“By

Armando Diseri, Alta West Capital

Grant Armstrong: The Canadian economy

I’m excited to see how it will change and how the mortgage market will continue to support Canadians with their most important financial decision.

A roadmap to success

Amid ongoing affordability challenges, the ‘renewal cliff,’ and declining interest rates, CMI provides efficient and effective private lending strategies and solutions built for today’s mortgage market

BETWEEN SUPPORTING his mother in Ukraine and coping with recent losses from a business investment, a self-employed borrower found himself in dire financial straits. His Vaughan, Ontario property was under power of sale, and he urgently needed financing to pay off his first mortgage with Scotiabank. But thousands in bad debts and a low Beacon score made it clear a traditional mortgage wasn’t an option. So his broker brought the deal to CMI – and for good reason, notes Cynthia Clark, director, brokerage relations.

“We evaluate each case on its own merits, looking beyond the numbers and ratios to find solutions that make sense,” she explains.

In this complex borrower situation, CMI structured a bundle solution of first and second mortgages, enabling the client to access his home equity to repay the Scotiabank mortgage, effectively halting further power of sale action. The client was also able to pay off over $70,000 in bad debts and complete minor repairs to prepare his home for sale, which aligned with his exit strategy of downsizing to a more manageable property. To alleviate cash flow concerns, the mortgage bundle was fully prepaid for the entire 12-month term, putting the client in a position to recover financially and improve his credit score.

“We approach challenging situations

by taking a comprehensive approach, ensuring we understand the full picture. Our goal is to help brokers to deliver strategic solutions to their clients, even when it seems like all options have been exhausted,” Clark says.

that positively impact their financial standing,” Clark says.

For example, many borrowers are facing the reality of maturing mortgages and other long-term loans being renewed at much higher interest rates, pushing their total debt servicing (TDS) to unsustainable levels. For these clients, short-term debt consolidation through a second mortgage can be invaluable. By bringing their TDS ratios back in line, their Beacon scores will improve over time and put them in a better position for mortgage renewal. Additionally, it helps them manage their finances more effectively by simplifying obligations and freeing up cash flow, while encouraging a slowdown in credit card spending.

“In this environment, brokers have the opportunity to take on a broader advisory role, providing clients with comprehensive, financially sound solutions that go beyond the immediate mortgage transaction,” Clark says. “Ultimately, the goal is to help clients navigate these challenging

“For brokers, today’s mortgage market underscores the importance of staying informed and ready to advise clients on adapting their financial strategies” Cynthia Clark, CMI

Proactive guidance, solutions

A broker’s role doesn’t end with securing financing – it’s about setting clients on a path to robust financial health. The first step on that journey? Education.

Affordability is a significant concern, increasingly strained by the pressures of high-interest consumer debt and fixedrate mortgages up for renewal at higher rates. CMI expects these challenges will continue to impact homeowners for the foreseeable future. By explaining these dynamics, illuminating the impact of their financial choices, and outlining feasible options, “brokers empower clients to make more informed decisions

times with a clear, proactive strategy that focuses on the bigger picture and prioritizes long-term financial stability.”

The private lending piece

Every client’s situation is unique, so tailored solutions that fit their specific needs today while supporting their future plans are essential. Private lending, with its flexible and customizable financing options, is increasingly popular and can be an excellent solution in the right circumstances – but it’s important to remember that these are short-term solutions.

Private mortgages are designed to help clients address their immediate needs by

“Ultimately, the goal is to help clients navigate these challenging times with a clear, proactive strategy that focuses on the bigger picture and prioritizes long-term financial stability” Cynthia Clark, CMI

providing the breathing room required to stabilize their finances, with the goal of transitioning them into a more traditional, long-term solution at the end of the term.

“A clear exit strategy is essential, and clients must be fully committed to it,” Clark says. “Proper planning is key to making a private mortgage a successful steppingstone, rather than a permanent fixture in a client’s financial plan.”

To best serve these clients, it’s important for brokers to thoroughly assess their financial situation, credit history, and specific needs. Private lenders, like CMI, focus on the overall equity and value of the property, rather than the borrower’s credit score.

“At CMI, it’s the story behind the numbers that matters,” Clark says. Understanding the client’s entire financial

picture is therefore crucial to matching them with the right solution.

It’s important for brokers to be transparent about all aspects of the process, including the potential consequences of default. It circles back to the value of education, Clark says.

Borrowers need to understand the solution and what makes it different from a traditional mortgage, including the fact that private mortgages typically have higher interest rates and fees.

“Brokers should be upfront with clients and ensure they fully understand the loan terms, including repayment structures, renewal options, exit strategies, and the possibility of refinancing in the future,” she says.

These considerations are paramount in the face of the “renewal cliff,” where many mortgage holders are facing renewing

at higher rates. It’s vital that brokers are proactive with renewals to avoid any end-of-term maturity issues, reaching out to clients at least 90 days in advance to review their exit strategy. If refinancing with a traditional lender – the most common strategy – is no longer viable, there’s more time to explore other options.

“By starting the conversation early, brokers can help ensure clients are well prepared and positioned to secure the best possible solution for their renewal, even in this challenging market,” Clark says.

Prime time to reach out

Even with recent Bank of Canada rate cuts and further easing expected, it will likely take multiple cuts – and some time – before consumers experience significant relief. Given this context, a broker can add value by taking a holistic approach and reviewing their client’s entire borrowing situation – not just their mortgage details. What other debts are they carrying? What interest rates are they currently paying? For example, some clients may have fixed vehicle loans from a year ago with rates as high as 8.99% or more. By identifying these areas, brokers can uncover opportunities to help clients make the most of rate cuts.

Overall, brokers have a unique opportunity to get ahead by continually expanding their knowledge in an everchanging industry. By doing so, they can confidently guide clients through the evolving borrowing landscape and position themselves as trusted experts. This not only strengthens client relationships but also positions brokers for long-term success.

“For brokers, today’s mortgage market underscores the importance of staying informed and ready to advise clients on adapting their financial strategies,” Clark says. “Position these rate reductions as a catalyst for conversations around broader financial planning. Use this time to build stronger, lifelong relationships with clients by helping them navigate not just their mortgage needs but their overall financial well-being.”

When you partner with HomeEquity Bank, you receive: Unlock the Potential of Canada's 55+ Market: Grow your business with the CHIP Reverse Mortgage

Customer types: Business for self, new to Canada, bruised or damaged credit, etc.

Income sources: Articles of incorporation, pay stubs (only at 80% LTV), stated income letter

Fees: Commitment fees starting at 2.00%

Finder’s fee: 1%

Minimum loan amount: $50,000

Minimum loan amount: $50,000–$75,000+

Special features: High-net-worth products (high liquid assets); shared equity (down-payment assistance program); mortgages for the self-employed; non-conforming products; rental purchases; holding company mortgages (Hold-Co); 35-year AM option; NO-stress mortgages; unconventional properties (e.g., seasonal homes, hobby farms); agricultural lending

Maximum loan amounts: First mortgage up to $2 million. Second mortgage up to $500,000; on over $300,000 there is a 50bps premium on lender fee, and maximum LTV is 75%

Special features: Broker Loyalty Program (BLP) – earn up to 15bps on every deal you fund in a quarter. We have added a new charity enhancement to our BLP. For every deal funded, Alta West Capital will donate $100 to a charitable cause. All brokers who fund their first deal with Alta West Capital will be eligible for the BLP, and their first deal will be counted towards our contribution of charitable payout.

CANADIAN MORTGAGES INC.

brokers.thecmigroup.ca

888-465-8584

Lending markets: Ontario, Quebec, British Columbia, Alberta, and Atlantic Canada

Niche/focus: Customized private mortgage financing delivered exclusively through the mortgage broker channel. Offering flexible, innovative solutions tailored to your clients’ needs. CMI takes a common-sense approach to mortgage lending.

First and second mortgages up to 80% LTV with competitive rates. Known for transparent lending practices, collaborative partnership, and exceptionally fast service

Products: First and second mortgages, short-term and bridge loans, equity mortgages, and bundle mortgages

Customer types: A-, B-, and C-level credit. No minimum Beacon score

Income sources: All income types considered: salary, commission, business for self, freelance, retired and equity.

Property types: All residential properties, including one- to four-unit owner-occupied, rentals, condos, and cottages. No restrictions on location. Remote and rural properties considered on a case-by-case basis

Purposes: Financing available for purchases, business working capital, debt consolidation, bridge loans, investment purposes, emergency purposes, tax or mortgage arrears, income relief, home renovations, and more

Maximum LTV: Up to 80% on first and second mortgages in major urban and suburban markets; up to 75% in smaller towns or rural locations. Blanket mortgages are considered on a case-by-case basis

Minimum Beacon: None

Servicing ratios: No maximum

Terms: 3, 6, 9, and 12 months. Custom terms are available

Rate type: Fixed

Maximum amortization: Up to 40 years or interest-only

Fees: 2–3.5% on first mortgages, 3–6% on second mortgages. Fees dependent on location, income, credit, and security

Minimum loan amount: $50,000 on first or second mortgages

Maximum loan amount: Up to $1.5 million in urban markets

Special features: No hidden application fees; early repayment penalties of no more than three months; prepaid (for all or part of term) available; open mortgages and custom term lengths

available. Eligible second mortgage positioning behind CHIP/reverse mortgage and collateral-charge mortgages; high-ratio mortgage bundles; and short-term/bridge loans available

COMMUNITY TRUST

888-649-1169

Lending markets: Ontario, British Columbia, Alberta, Atlantic Canada, Manitoba, and Saskatchewan

Niche/focus: Alt-A lending

Products: Conventional mortgages, non-conforming mortgages, second mortgages, investment properties, business for self (BFS), home equity line of credit (HELOC)

Customer types: Clients with all income types accepted, including traditional and non-traditional income sources.

Salary, commissioned, BFS, and various others. Clients with bruised or limited credit, including those with previous bankruptcies, collections, and judgments

Income sources: Self-employed, salaried, child tax credit/UCB, foster care, maternity/paternity income, seasonal employment, alimony/child support, pension, contract, rental, tip, disability, investment, commission-based

Property types: Single-family homes, row houses and townhouses, condo/ strata, well and septic, multi-unit homes

Purposes: Financing available to purchase or refinance a principal, secondary, or investment property

COSMAN MORTGAGE CAPITAL CORP.

Property types: Commercial properties and high-end residential

Purpose: Financing available for any reason

Maximum LTV: 80%

Minimum Beacon: 500 FICO score

Terms: 1, 2, 3, and 5 years

Rate type: Fixed

Maximum amortization: 35 years

Fee: 1%. No-lender-fee mortgages also available

Minimum loan amount: $100,000

Maximum loan amount: No listed maximum mortgage amount

Lending market: Southern Ontario

Niche/focus: Direct lender who focuses on commercial and high-end residential. All mortgages are completely customizable based on the needs of the borrower. Creativity is welcome

Products: Primarily first mortgages, along with select second mortgages

Customer type: Commercial

Income sources: N/A

Maximum LTV: All properties are case by case; however, absolute maximum is 75%

Minimum Beacon: 600

Terms: 6, 9, 12, and 18-month loans with options to renew

Rate types: Fixed and variable options available

Maximum amortization: Interest-only

is standard; however, amortizing loans are available

Fees: Typically, 1.5–2% for first mortgages and 2–2.5% for second mortgages

Minimum loan amount: $1 million

Maximum loan amount: $10 million

Special feature: All mortgages are completely customizable based on customer request

EQUITABLE BANK

equitablebank.ca

866-407-0004

Lending markets: Alternative lending: National. Reverse mortgage: Ontario, British Columbia, Alberta, Quebec

Niche/focus: Alternative lending: Offer mortgages and HELOCs catering to clients that are self-employed, new to Canada, or rebuilding their credit. Reverse mortgage: Offer reverse mortgages for clients aged 55+ to help them access tax-free equity in their home

Products: Alternative lending: First mortgages, HELOCs, laneway/secondary suite construction mortgages. Reverse mortgage: Reverse mortgages in first position for clients aged 55 and up

Customer types: Alternative lending: Self-employed clients, new to Canada, and those looking for investment properties. Reverse mortgage: Designed

HOMEEQUITY BANK

chipadvisor.ca

866-925-2447

Lending market: Canada

Niche/focus: Reverse mortgages

Products: CHIP Reverse Mortgage, Income Advantage, CHIP Max, CHIP Open

Customer type: Canadian homeowners aged 55+

Income sources: Borrower must provide a valid and adequate home insurance

for clients 55 years and older that are looking to access equity to help with retirement, debt relief, or early inheritance to family members

Income sources: Alternative lending: Self-employed (via bank statements or business financials), salaried, commission. Reverse mortgage: Pensioners, self-employed (via bank statements or business financials), salaried, commission

Property types: Detached, semi-detached, townhouses, condos

Purposes: Purchases and refinances for both owner-occupied and investment properties

Maximum LTV: Alternative: 80%. Reverse mortgage: 59% (depending on client’s age)

Minimum Beacon: 500

and property tax statement (current year or deferred property tax statement)

Property types: Single-family dwelling, detached duplex, triplex, quadruplex, link home, semi-detached, townhouse/row house; condo – townhouse/stacked townhouse; condo – apartment style

Purpose: Canadians aged 55+ can access up to 55% of the value of their home in tax-free cash to retire in the home they love

Maximum LTV: 55%

Minimum Beacon: No minimum

Terms: 1–5 years

Rate types: Fixed, ARM, fully open

Maximum amortization: 30 years

Fees: Alternative lending: 1% (no-fee options also available). Reverse mortgage: $995 set-up fee

Minimum loan amounts: Alternative lending: $75,000. Reverse mortgage: $250,000 min. property value

Maximum loan amount: No maximum

Special features: Adjustable-rate mortgage terms with interest-only penalties. Will consider appraised value on new-construction purchases (not to exceed 100% of original purchase price). Laneway/secondary construction mortgages available in the GTA, GVA and Calgary

Terms: 6 months; 1, 3, or 5 years

Rate types: Fixed and variable

Fees:

Special

HOSPER MORTGAGE

hospermortgage.com/brokers

647-250-1345 (West Ontario); 647-362-2323 (East Ontario)

Lending market: Ontario

Niche/focus: With lightning-quick replies, flexible solutions, and consistent commitment packages, Hosper Mortgage’s award-winning service has become well known in the Ontario mortgage broker community. Hosper is a true equity-based alternative lender, meaning no income documents or minimum credit score are required. Send us your deal – we will find a way to close it!

Products: First, second, and third mortgages; purchases and bridge loans

Customer types: We welcome all types of customers

Income sources: No income documents required

Property types: Residential properties – single-family, row houses, condos, well and septic, and multi-unit homes

Purpose: To be the best alternative to a traditional bank and provide flexible mortgage solutions as fast as needed

Maximum LTV: 80%

KEYSTONE CAPITAL GROUP LTD.

keycap.ca

902-818-5262

Lending markets: Atlantic Canada –Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland

Niche/focus: Personalized loans for unique, short-term financing needs, including solutions for real estate investors – flips, renos, multi-units, rental portfolios

Products: First and second mortgages, bridge loans, blanket mortgages, ETO, renovations, new home construction, tax arrears

Customer types: All considered, including thin or limited credit

Income sources: BFS, salary, commission, retired, other

non-traditional income. Low-doc requirements

Property types: Residential, small multi-unit, detached, townhouses, semis, condos, cottages. No geographic restrictions. Rural properties considered with strong exit

Purpose: We source short-term mortgage financing opportunities through licensed mortgage brokers, secured to residential and multi-unit properties across Atlantic Canada

Maximum LTV: 75%

Minimum Beacon: No minimum

Terms: 6- or 12-month OPEN terms

Rate type: Fixed

Maximum amortization: Interest-only

Minimum Beacon: None

Terms: 6 months open or closed; 12 months closed

Rate types: Fixed, interest-only, and principal + interest

Maximum amortization: 40 years

Maximum loan amount: Up to $1 million

Special features: Fast approvals, personalized mortgage solutions, dedicated BDM support, quick closings as fast as 24 hours

Fees: 3%+

Minimum loan amount: $30,000

Maximum loan amount: $1 million (larger loans on exception)

Special features: Blanket mortgages; cross-provincial mortgages (including Ontario); fee reductions for bridge loans

LENDFINITY FINANCIAL CORP.

Lending markets: Ontario, Alberta, British Columbia

Niche/focus: Innovative lending solutions helping customers throughout ON, BC and AB to navigate unique financial situations with confidence. Solutions are structured with a commonsense, equity-based lending approach, instead of being credit or income driven

Equity-based lending – Not credit driven – Not income driven

Products: First, second, and third mortgages; HELOC; secured Visa card; prepaid mortgages/bundle mortgages

Customer types: All credit scores accepted; all professions considered (salaried/self-employed individuals, owner-operators, truck drivers, etc.)

Income sources: No income required (all income types/streams considered –salaried, commissioned, business for self, freelancer, retired, CRB)

Property types: Residential properties (detached, semi-detached, condos, townhouses, mixed-use properties in GTA); rural and recreational properties (cottages) considered at low-LTV or can be structured along with desirable urban properties

Purposes: Financing available for purchases, renovation, debt consolidation (secured and unsecured), strategic investments, equity take-out, deposit financing, bridge loans, etc.

Maximum LTV: 80%

Minimum Beacon: 600

Terms: 3–12 months

Rate type: Fixed

Maximum amortization: 0 (interestonly) – standard interest-only payment option available, no amortization

Fees: 1–3%

Minimum loan amount: From $50,000 for standard transactions

Maximum loan amount: $2 million (subject to equity and exit strategy constraints)

Special features: Innovatively structured solutions for targeting the unique needs of your clients, offering flexibility in:

• payments (prepaid, partially prepaid, standard)

• term (3–12 months available)

• innovative mortgage structures (bundles and collateral charges for high-LTV deals)

Unlock a world of tailored financing solutions designed just for you. Whether you need a private mortgage, bridge loan, working capital, prepaid mortgage, bundle mortgage or other options, we’ve got the perfect fit. Our strength lies in building robust partnerships. By collaborating closely with brokers and industry professionals, we create synergistic relationships that drive your financial success.

Products:

Customer types: Clients looking to purchase, sell, or refinance, and for estate planning

Property types: Residential and commercial

Purposes: Consultation for purchasers, sellers, refinancing of conventional and private mortgages

Fees: Competitive fixed (for standard transactions) fees for certainty of closing costs

Minimum loan amount: Any amount

Maximum loan amount: No limit

Special features: Virtual and in-office meetings for clients all over Ontario

RADIUS FINANCIAL

Lending markets: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Atlantic Canada

Niche/focus: Prime lending

Products: Purchase; purchase plus improvements; second homes; new to Canada; insured BFS; enhanced business for self; switches and collateral transfers; no-fee transfers; bridge loans; gifted equity transactions; flex down payment; bridge loans and refinances/ETO

Customer types: A-level credit for first-time homebuyers, new to Canada, self-employed borrowers, second homes, vacation homes, and family plans

Income sources: Salaried, contract, commission-based, self-employed,

child tax credit, foster care, maternity/ paternity income, seasonal employment, alimony/child support, pension, rental, tips, permanent disability, and investment

Property types: Single-family homes, row/townhouses, condo/strata, well and septic, multi-unit homes and modular

Purposes: Financing available to purchase or refinance a principal or secondary property

Maximum LTV: Insured loans up to 95%; insurable and uninsurable up to 80%

Minimum Beacon: 600

Terms: 1–5 year fixed; 3- and 5-year ARM

Rate types: Standard charge fixed and ARM

Maximum amortization: Minimum 10 years insured or insurable; up to 25 years

(extended to 30 years on FTHB/new construction). 30 years uninsured

Fees: No fees

Minimum loan amounts: Purchase and refinance: $50,000. Transfer/switch: $75,000

Maximum loan amounts: High ratio: $924,999. Conventional insurable: $799,999

Special features: New and enhanced broker portal; full-service underwriting team; documents reviewed up front; 24-hour SLA

Products:

Property types: Development

1–3 years

Rate types: Fixed and floating

ROYAL CANADIAN MORTGAGE INVESTMENT CORP.

Property type: Residential only

Lending market: Ontario only

Niche/focus: Private lending for first and second mortgages and first- and second-position HELOCs

Products: Standard mortgages and HELOCs for both first and second mortgages

Customer types: All types

Income sources: Income letters, pay stubs, NOAs for business for self

Purposes: All types, for example mortgage arrears, stop power of sale, pay out consumer proposal, Canada Revenue tax arrears, property tax arrears

Maximum LTV: First mortgage up to 75% LTV; second mortgage up to 75%. HELOCs – firsts and seconds up to 75%

Minimum Beacon: Not required

Terms: Up to 12 months

Rate types: Fixed and variable for HELOCs

Maximum amortization: N/A –interest-only payments

Special features: Unlimited funds; approvals within hours; keeping you informed; working to get your deal funded; providing outstanding service at all times; all deals on a case-by-case basis

SEQUENCE CAPITAL

888-228-3834

Lending markets: British Columbia, Alberta and Ontario

Niche/focus: Direct lender focusing on urban markets at 75% LTV and in more rural areas at 65% LTV on first and second mortgages. We offer excellent service, a quick turnaround, and reasonable fees. Low renewal fees. No income documents needed; common-sense lending

Products: Equity first mortgage lending up to 70% LTV in urban markets. Second mortgages up to 60% LTV behind CHIP reverse mortgage

Customer type: Borrowers who are not able to qualify at conventional lenders

Income sources: All sources. Stated income. Common-sense lending

Property types: Single-family, detached, condos, mixed-use, rentals, lease land (BC), ALR, farms, cottages, and waterfront properties

Purposes: Purchases, equity take-out, debt consolidation, renovations, business capital, investments, mortgages, tax arrears, foreclosure saves, cash flow relief

Maximum LTV: 75% LTV; consideration of 80% LTV if loan is less than $150,000

Minimum Beacon: N/A

Lending markets: Ontario, British Columbia

Niche/focus: Vault is a direct lender providing first-mortgage financing in urban/suburban markets. We specialize in assisting Near-B borrowers who need a stop-gap solution with more versatility. Our mortgages offer greater flexibility so that borrowers can remain financially nimble during uncertain times and have the tools to unlock traditional financing sooner.

Products: First mortgages, blankets, large commercial financing

Customer type: Near-B borrowers. Specializing in borrowers who don’t meet traditional guidelines but can manage payments and maintain good credit

Income sources: Business for self, commission, rental, salary, foreign, liquid net assets, investments

Property types: One- to four-unit residential properties and condos. Commercial financing; multi-res five units plus

Purposes: Purchases, refinances, equity take-outs for investments, down payments, renovations, tax purposes

Maximum LTV: Purchases up to 80%, and up to 70% for refinances in major metropolitan areas

Minimum Beacon: 600

Terms: 1–12 months. Renewal options available

Rate types: Variable with fixed-rate options

Terms: 1 year open after 3 months; 1 year closed

Rate type: Fixed

Maximum amortization: Interest-only

Fees: 1% on urban first mortgages, min. $2,500; 1.5% on rural first mortgages, min. $2,500; 2% on second mortgages, min. $2,000. Depends on quality of application

Minimum loan amount: $10,000

Maximum loan amount: N/A, depends on overall quality of application

Special features: Second behind CHIP reverse, collateral charges, prepaid, rural areas

Maximum amortization: Interest-only payments

Fees: 6-month terms: 1.25–1.50%; 1-year terms: 1.75–1.99%. All fees are subject to change pending full review and risk assessment of the file. Minimum fee is $2,500

Minimum loan amount: $125,000

Maximum loan amount: Loans for over $3 million in major metropolitan centres are considered case by case. Geographic and LTV restrictions apply

Special features: Vault offers “Near-B” pricing with the simplicity of private underwriting. Fully open terms with no payout penalty, and a no-fee 20% prepayment option to help borrowers lower their APR and monthly payments while building equity. One-year to six-months prepaid interest.

VWR CAPITAL CORP.

vwrcapital.com

866-907-5407

Lending markets: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario

Niche/focus: Direct to licensed mortgage brokers in urban residential markets with transparent and industry-low lending fee structure

Products: Equity-based first and second mortgages, open or closed at the same rates

Customer types: Individuals, self-employed, holding companies, salaried or commissioned employees with any level of credit considered

Income sources: Stated income with no debt-servicing requirements. Notice of assessment for self-employed borrowers required to confirm tax balance

Property types: Urban single-family, townhomes, condos, row homes, serviced land, raw land, multi-family, lease land (BC), and inter-alia/blanket mortgage specialists

Purposes: Purchases: owner-occupied or rental at same pricing. Refinance including equity take-out for investment purposes, business capital, debt consolidation, arrears, foreclosure/ power-of-sale rescue. Serviced or raw land purchase or refinance available on residential urban city lots

Maximum LTV: Up to 75% in urban markets. Contact your BDM with an address for other areas

Minimum Beacon: None

Terms: 1-year open or closed at the same rate

Rate type: Fixed

Maximum amortization: Up to 35 years. Interest-only available for LTV under 65%

Fees: First and second mortgages with same fee structure. 1% for an open term. Fixed fees starting at only $750 for a closed term. Renewal fee is only $200!

Minimum loan amount: $50,000

Maximum loan amount: $2.5 million

Special features: 30+ years of history and experience in the private

lending market. Business development managers are empowered to make decisions and have the knowledge to help you with any deal structure. Rate buy-downs and interest reserves options are available. You set your own broker fee; you earned it!