LENDING MATURES
Recalibration of private lender assessment means consistency of execution matters
Execution as currency: how private lending is being judged in a more sophisticated market
Stability, adaptability, and broker-focused lending solutions ensure brokers can confidently serve clients, no matter the conditions
PRIVATE CREDIT has matured into a core component of the Canadian mortgage ecosystem. Brokers now move comfortably across institutional, alternative, and private capital, assembling structures that reflect a more layered housing market and a more demanding borrower base.
With that maturity has come a recalibration of how private lenders are assessed. Pricing still matters, but it is no longer the primary differentiator. Brokers and borrowers are placing greater weight on predictability, underwriting discipline, and a lender’s ability to perform when transactions become complex.
Tighter timelines, multi-lender capital stacks, and heightened regulatory awareness mean execution has become the true currency.
For CMI Financial Group, those expectations align closely with how the firm has built its business. Established more than 30 years ago, CMI has grown into one of Canada’s established private mortgage lenders, working exclusively through the
broker channel to provide short-term residential and commercial financing solutions. The firm focuses on transitional lending scenarios where borrowers require speed, flexibility, or structuring that falls outside conventional underwriting.
Joe Flor, VP, national sales and broker relations, and Cynthia Clark, director of brokerage relations at CMI, say that as private lending becomes more widely understood, brokers are placing greater emphasis on reliability and partnership. In their view, differentiation today has less to do with capital availability and more to do with how consistently that capital is deployed.
Flor and Clark discuss how expectations around private lending are shifting and what brokers are prioritizing when selecting lending partners.
In a market where private capital is more understood, what actually differentiates one lender from another today?
MEET THE EXPERTS
Joe Flor Vice president, national sales and broker relations CMI Financial Group
Cynthia Clark Director of brokerage relations
Financial Group
“Brokers work with a wide range of private lenders, and not all are designed to solve the same problems. Understanding a lender’s niche, risk appetite, and how they respond when a file becomes less than straightforward is critical”
Joe Flor, CMI
Flor: What differentiates private lenders today is not access to capital. It is consistency of execution and clarity of mandate.
Brokers work with a wide range of private lenders, and not all are designed to solve the same problems. Understanding a lender’s niche, risk appetite, and how they respond when a file becomes less than straightforward is critical. Experience and integrity matter. A proven track record through multiple market cycles matters just as much as pricing.
Anyone can quote a rate. Not everyone can execute predictably when complexity appears.
For brokers, that predictability directly affects their ability to advise clients. When a lender’s approach is consistent, brokers can structure files more confidently and set expectations with greater precision. That clarity reduces friction and helps avoid lastminute complications.
Where do deals typically become strained when communication isn’t strong from the outset?
Flor: Deals almost always become complicated when key information appears late in the process.
The fastest way to prevent that is full transparency at submission. We encourage brokers to provide the complete story, including strengths, challenges, and anything that could influence execution. When we have that clarity upfront, we can determine quickly whether there is a workable solution, how risk can be mitigated, and what documentation will be required. That leads to faster decisions and fewer surprises for brokers and their clients.
Incomplete information introduces avoidable delays. It can also affect structuring if key details surface after underwriting has already progressed. Early
clarity allows for more efficient decision-making and a smoother path to funding.
In a competitive lending environment, how do you maintain underwriting discipline while remaining flexible enough to solve complex situations?
Flor: Private lending is not equity lending. While we operate in higher-risk or more complex scenarios, underwriting discipline remains essential.
Our role is to structure solutions that are thoughtful and sustainable. That protects
investors, the lender, and ultimately the borrower. Flexibility comes from understanding the full picture and structuring appropriately. It does not come from overlooking fundamentals such as affordability or exit viability.
If the exit strategy is not realistic from the outset, the risk only increases over time.
Disciplined underwriting does not limit flexibility. It allows flexibility to be applied in a structured way. When risk is under -
stood clearly, solutions can be tailored more effectively.
Has the conversation shifted from “Should we use private lending?” to “Which private partner executes best?” What does that shift mean for your team?
Clark: The conversation has absolutely shifted.
Brokers today are highly educated on private lending and far more focused on execution, reliability, and overall client experience. That means our responsibility extends beyond approving deals. We need to function as a trusted partner throughout the process, communicating clearly, setting expectations early, and ensuring brokers feel confident presenting solutions to their clients. Execution is not only about funding a loan. It is about how the entire transaction unfolds.
Reliable communication, realistic timelines, and clear conditions all contribute to that experience. Brokers are often coordinating multiple parties at once. Consistent updates from a lending partner help them manage those moving parts effectively.
How does CMI’s structure change the experience for brokers and borrowers once a deal is in motion?
Clark: For brokers, a smooth client experience depends heavily on predictability and communication.
Once a deal is in motion, having a clear process and responsive team makes a measurable difference. Our focus is to ensure brokers always know where a deal stands, what is required next, and how to guide their client through the process without unnecessary confusion.
Confidence increases when there are no surprises.
From the borrower’s perspective, clarity around timelines and expectations helps reduce uncertainty. Many private lending clients are navigating time-sensitive or transitional situations. A structured and transparent process helps maintain momentum.
How do you ensure borrowers understand not just the approval but also how the loan will perform over time?
Clark: A private mortgage should not be viewed as an end solution. It is a short-term tool designed to help clients stabilize and move forward.
A critical part of the conversation is ensuring the exit strategy is realistic and attainable. It cannot simply be a requirement to secure funding. While renewals may be available in some cases, they are not guaranteed. Helping brokers clearly articulate the forward path protects
the client and leads to stronger long-term outcomes.
Responsible lending includes planning for what happens after funding.
That planning often involves coordination with brokers around refinancing timelines, credit improvement, or asset sales. When borrowers understand the purpose of the loan and the expected trajectory, they are better positioned to use private capital effectively.
Where is CMI investing most heavily right now to remain a reliable execution partner for brokers?
Clark: We continue to invest in people, process, and systems that support brokers through increasingly complex files.
“The conversation has absolutely shifted. Brokers today are highly educated on private lending and far more focused on execution, reliability, and overall client experience. That means our responsibility extends beyond approving deals” Cynthia Clark, CMI
That includes strengthening underwriting consistency, improving turnaround times, and ensuring brokers have access to experienced decision-makers. The objective is straightforward. When a broker submits a deal, they should feel confident it will be handled thoughtfully and efficiently.
Consistency is built through experienced teams and clear processes. As transactions become more complex,
that consistency becomes even more important.
Reliability as the defining metric
The private lending market has reached a level of maturity where access to capital alone no longer defines value. Brokers and borrowers are evaluating lenders on reliability, clarity, and the ability to execute under pressure. As transactions grow more layered and timelines more compressed, those qualities carry increasing weight.
For CMI Financial Group, the emphasis remains on disciplined underwriting
combined with practical structuring and clear communication. Its long-standing presence in the Canadian private lending space, broker-only distribution model, and focus on short-term transitional financing position it as a consistent participant in complex files.
The firm’s aproach places greater weight on the overall equity and value of a property and the circumstances surrounding the borrower, rather than relying solely on traditional credit metrics.
Many borrowers who secured financing in a lower-rate environment are now confronting significantly different conditions.
In that context, proactive planning becomes critical. Brokers who review exit strategies well before maturity and explore refinancing options early can help borrowers avoid lastminute pressure if traditional financing is no longer immediately available.
In a lending environment where private capital is fully integrated into mainstream financing, the distinction between lenders rests less on access to funds and more on the reliability of delivery. What brokers now assess most closely is not who can lend but who can execute with consistency, discipline, and clarity from submission through to funding.
CANADIAN MORTGAGES INC.
brokers.thecmigroup.ca
888-465-8584
info@thecmigroup.ca
Lending markets: Ontario, Quebec, British Columbia, Alberta, and Atlantic Canada
Niche/focus: Customized private mortgage financing delivered exclusively through the mortgage broker channel. CMI offers flexible, innovative solutions tailored to your clients’ needs, backed by a reputation for transparent practices, collaborative partnerships, exceptional speed, and a common-sense approach to lending.
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. No maximum TDS/GDS.
Income sources: All income types considered: salary, commission, business for self, freelance, retired, and equity
Property types: All residential properties, including one to four units, owner-occupied, rental properties, 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 and prepaid options 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 with higher amounts considered on a case-by-case basis
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 2nd mortgage positioning behind CHIP/reverse mortgage and collateral-charge mortgages; high-ratio mortgage bundles and short-term/bridge loans available. Customized mortgage solutions tailored to your clients’ needs.
GLENGARRY FARM FINANCE
glengarry.ca
844-458-FARM (3276)
Lending markets: Ontario, Manitoba, Saskatchewan, Alberta, British Columbia
Niche/focus: Agriculture
Products: First and second mortgages, bridge loans
Customer types: Farmers and agricultural producers who fall just outside traditional lending criteria but have strong land assets and viable operations. No tourism ventures, hobby farms, new farmers, wineries, equestrian, or non-ag enterprises.
Income sources: Three years’ accountant-prepared financial statements or last three years’ T1 with Farm Schedule (T2042 Statement of Farming Activities), Net Worth Statement (both personal and corporate), cash-flow projection, or business plan demonstrating projected revenues and expenses for the coming year
Property types: Food-producing commercial farms and farmland
Purposes: Our clients are primary producers (crops and livestock) who may be facing short-term cash-flow challenges, refinancing
debt, expanding through land or equipment purchases, or navigating transitions like succession or restructuring
Maximum LTV: Up to 70%
Minimum Beacon: 600
Terms: 1–3-year terms with interest-only options
Rate type: Fixed
Maximum amortization: N/A
Fees: 1% lender fee
Minimum loan amount: $500,000
Maximum loan amount: None
Special features: To accommodate variability in farm cash flow, we offer interest-only mortgages, payment frequencies other than monthly, or, on a case-by-case basis, large lump sum prepayments
HAVENTREE BANK
Lending markets: All provinces
Niche/focus: Alt lending, bruised credit, business for self, and extended amortizations
Products: First and second mortgages, convertible and improvements mortgages
Customer types: Business for self, new to Canada, bruised or damaged credit, navigating major life changes like bankruptcy or divorce; we offer flexible mortgage solutions designed for real life
Income sources: All income types are considered: salaried/hourly, commissions, business for self, freelancers, retired, and CCB
Property types: 1–4-unit residential properties & condos; 9 properties max (8 plus 1 owner-occupied)
Purposes: Purchase & refinancing
Maximum LTV: 80%
Minimum Beacon: 500
Terms: 1-, 2-, 3-, 4-, and 5-year terms, 12-month convertible, open-term second mortgage
Rate type: Fixed
Maximum amortization: Up to 35 years
Fees: Up to 2% lender fee
Minimum loan amount: $100,000 for first mortgages, $50,000 for second mortgages
Maximum loan amount: $2,500,000
Special features: Elite Loyalty Program
NEIGHBOURHOOD HOLDINGS
604-568-4063
Lending market: Major urban centres in British Columbia, Alberta, Saskatchewan, Ontario, Quebec, and Nova Scotia, along with select smaller centres in British Columbia, Alberta, and Ontario
Niche/focus: Alternative lending simplified – Neighbourhood provides flexible mortgage solutions for brokers and their clients through fast, transparent underwriting with a high-service, tech-enabled approach
Products: 1st mortgages (Classic 1-year term, ALT-A 2-year term) & 2nd mortgages in British Columbia, Alberta, and Ontario
Customer types: Self-employed, credit challenged (bankruptcy/ proposals OK), temporary residents, holding companies
Income sources: Stated income declaration signed at borrower’s lawyer or notary
Property types: Residential single-family homes, one- to four-unit, townhouses, condominiums/strata; owner-occupied or rental
Purposes: Purchases, refinances, equity take-out, bridge financing, title transfers, and minor renovations
Maximum LTV: Up to 75% for Beacon 600+; up to 65% for Beacon 500–599
Minimum Beacon: 500
Terms: 1-year (open, partially open, closed – 3-month prepayment penalty); 2-year (closed – 3-month prepayment penalty)
Fee: 1-year Classic program: broker sets own fee (closed) or 1% lender fee (open term); ALT-A 2-year program: no lender fee, 75bps embedded broker fee
Minimum loan amount: $100,000 (1st); $75,000 (2nd)
Maximum loan amount: $3,000,000 (1st); $500,000 (2nd)
Special features: No GDS/TDS max, seconds behind B-lenders permitted, 90-day rate guarantee, bankruptcies and consumer proposals accepted, foreclosure take-outs up to 65% LTV, inter alia/blanket solutions neighbourhood.com
Rate type: Variable with a floor
Maximum amortization: 40 years or interest-only
ROI GROUP
Lending markets: Southern Ontario – emphasis on GTHA, Southwestern Ontario & Niagara Region
Niche/focus: Direct non-institutional commercial mortgage opportunities; investor and portfolio friendly
Products: First mortgages, bridge loans, construction loans, development & servicing loans, renovation financing, portfolio blanketing loans, equity take-out mortgages
Customer type: Real estate investors, builders, developers, business owners. All income sources and credit scores considered.
Income sources: Deal, property, and structure dependent
Property types: Income-producing properties (industrial, multifamily, mixed-use, retail plazas, office, hospitality), development & raw land, construction sites (in-fill & low-rise/retail/industrial)
Purpose: Acquisition, refinance
Maximum LTV: 65%
Minimum Beacon: N/A
Terms: 12–24 months
Rate type: 11%–12%
Maximum amortization: Interest only Fee: 2%–2.5%
Minimum
Special features: Connect with us to learn more
THREEPOINT CAPITAL
threepointcapital.ca
800-979-2911
Lending markets: British Columbia, Alberta, and Ontario
Niche/focus: Creative solutions-based flexible lending on marketable residential properties in urban locations for those who do not qualify for traditional lending
Products: 1st and 2nd mortgages
Customer type: Private individuals, non-residents, and new to Canada, as well as holding companies with personal guarantees of all directors
Income sources: Hourly and salaried employees, self-employed, stated income, and retirement income are accepted, subject to overall comfort on ability to pay
Property types: Residential owner-occupied or rental, single-family detached, townhouses, duplexes, fourplexes, and condominiums
Purpose: Purchases, refinances, equity take-out, debt consolidations, and renovation projects
Maximum LTV: Up to 75% LTV
Minimum Beacon: 600
Terms: 1-year terms. Renewals offered to borrowers in good standing with a fully transparent renewal process that provides peace of mind.
Rate types: Fixed rate with options for an open term
Maximum amortization: Up to 40-year amortization available and interest only considered on 1st mortgages up to 70%
Fees: Three Point Capital’s Pathfinder lending program allows you and your client to choose between no lender fee and a higher rate or a lower rate and a 1% or 2% fee, depending on what best suits the client’s individual needs.
Minimum loan amount: $50,000
Maximum loan amount: $1,750,000 on a single property and $3,000,000 inter alia on 1st mortgages, $500,000 on 2nd mortgages
Special features: Ask about Three Point Capital’s lending programs: Pathfinder – no fee or lower rate – and Elevation – split fee: 50% lender fee, 50% brokerage finder’s fee. 1st mortgage construction financing in BC.
VWR CAPITAL CORP.
vwrcapital.com
866-907-5407
Lending markets: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario
Niche/focus: Equity based, residential property, urban lender. Direct to licensed mortgage brokers. Straight-forward products, industry low-fee structure with partnership alignment to ensure every deal is done the right way to protect the reputations of brokers, brokerages, and borrowers alike.
Products: First and second mortgages, 1-year terms, open or closed options
Customer types: Individuals, self-employed, holding companies, salaried or commissioned employees; all credit levels considered
Income sources: All income types considered, stated income with no debt-servicing requirements. Latest NOA required for self-employed borrowers to confirm if there are taxes outstanding.
Property types: Residential homes in urban centres within market areas. Single-family-attached, detached, townhomes, condos, row homes, multi-family, leasehold (BC), inter-alia/blanket mortgages
Purposes: Purchase, refinance, inter-alia/blanket
Maximum LTV: Up to 75% on 1st and 2nd mortgages. Contact your BDM to review an address, or for general lending areas, vwrcapital.com.
Minimum Beacon: All credit levels considered
Terms: 1-year terms, open or closed, at the same rate
Rate type: Fixed, always up to date at vwrcapital.com
Maximum amortization: Up to 35 years. Interest-only considered for LTV < 65%.
Fees: 1% for open term, fees starting at $750 for closed term. Fee structure is the same for 1st and 2nd mortgages. Renewal fees are only $200.
Minimum loan amount: $50,000
Maximum loan amount: $2.5 million
Special features: With over 30+ years of experience in alternative lending, we think of VWR as a pioneer in the alternate/private lending market. We have a disciplined approach and work every deal with integrity. Our accessible sales team is empowered to make decisions and equipped with the knowledge and experience to assist with your deal needs. Exceptional and dedicated customer service at every level! Commitment offers in less than 24 hours, while allowing you to set your own broker fee!
Are regulators getting it right?
Debate about regulators and how they’re handling the mortgage space has spilled into 2026. How are they faring in the eyes of brokers?
REGULATION OF Ontario’s mortgage industry has become a hot-button topic in recent years, with brokers sounding off on a flurry of new compliance and educational requirements introduced at both the provincial and federal levels.
While the pace of change has sometimes felt brisk, one experienced Ottawa broker believes most of the new rules are getting it just about right.
The current regulatory framework is “in a good place,” according to Andrew Thake, a mortgage broker with Smart Debt Mortgages in Ottawa.
He tells Canadian Mortgage Professional that he doesn’t see industry
regulators overstepping the mark in how they monitor brokers’ work. “The rules are clear, and brokers understand what’s expected of them,” he says.
“From my experience, the balance feels right. It protects consumers while still allowing brokers to do their jobs efficiently.”
Some of those changes have drawn a mixed response from brokers who feel regulators have gone about increasing scrutiny on the profession in the wrong way, adding unnecessary layers of red tape to the process of arranging financing.
For those critics, the concern is not just the time and cost of additional compliance but also the risk that excessive oversight
could ultimately limit choice and flexibility for consumers.
Others, though, say the rules are proportionate and appropriate, allowing brokers to go about their daily work while also maintaining adequate oversight across the industry.
Recent reforms have impacted multiple parts of the mortgage process. Changes introduced include a new licensing requirement for mortgage agents transacting in private mortgages as well as new anti-money laundering (AML) and anti-terrorist financing reporting responsibilities for brokers.
Those measures have arrived alongside tighter suitability and disclosure expectations, forcing brokers to document more thoroughly why a particular recommendation is appropriate for a client’s needs and risk profile.
FINTRAC changes ‘haven’t been difficult to manage’
The AML measures – which came into effect after mortgage administrators, brokers, and lenders were required to fulfill obligations under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act –have been criticized by some brokers as a burdensome requirement.
But Thake says the adjustment, mandated in October 2024, hasn’t been a challenge. “The recent FINTRAC updates haven’t been difficult to manage in my practice,” he says. “Most of the screening and compliance steps are built directly into our software, so it’s mainly a few extra clicks as part of the process.
“There is some added cost for screening tools, but it’s relatively small and hasn’t had a meaningful impact on how we operate.”
In his view, the evolution of the rules over the last decade has generally been measured rather than heavy-handed.
Thake doesn’t see any reason for regulators to adjust the current framework either, viewing the measures announced over the past decade as largely sufficient
to protect consumers and safeguard the financial system while also allowing brokers to flourish.
“At this point, I don’t see any major gaps that need additional focus,” he says. “Over the years, regulators have introduced changes such as stress-test adjustments and limits around HELOC borrowing, which shows they’re actively monitoring the market and responding where needed. From my perspective, the existing measures already address the key risks.”
An unchanged stress test
The mortgage stress test is one of the most visible examples of that regulatory approach. The rule requires borrowers to prove they can meet a mortgage payment calculated at 5.25 percent or two percentage points above their contract rate – whichever rate is higher – before they can qualify with a federally regulated lender.
That standard has faced plenty of broker scrutiny, with some viewing it as an
unnecessary barrier for first-time buyers and move up purchasers in markets where affordability is already stretched.
Still, supporters say the stress test has played a central role in ensuring that homeowners and mortgage holders can withstand interest rate shocks.
The Office of the Superintendent of Financial Institutions (OSFI) opened the year by opting to leave that rule unchanged, signalling the regulator’s continued belief that the measure remains an important line of defence after the rapid run-up in rates since 2022.
Debate is continuing among brokers on the question of whether regulation could be stripped back or adjusted across the industry without spiking the risk of unethical behaviour and negatively impacting consumers.
Some industry voices have argued that more flexibility around qualification, documentation, or product structures could help borrowers navigate today’s higher-
rate environment, while others counter that loosening standards too far would recreate the vulnerabilities that regulators have spent years trying to address.
Thake, though, doesn’t see any further changes as necessary and believes brokers have more than enough leeway to do their jobs without their toes being stepped on by regulators.
That might mean the focus for individual firms should be on building efficient systems, training teams properly, and integrating compliance into their daily workflows so that regulatory requirements become a natural part of client service rather than a distraction from it.
“Overall, I’m optimistic about the outlook for the mortgage brokerage industry,” he says. “Regulation continues to evolve, but it hasn’t disrupted our ability to serve clients. With the right systems in place, compliance is very manageable and the current environment feels stable.”
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