REPORT: Private Mortgage Awareness Gap Persists Even as Canadians Report Improved Finances

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Postmedia has not reviewed the content. by Business Wire REPORT: Private Mortgage Awareness Gap Persists Even as Canadians Report Improved FinancesAuthor of the article:THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountDespite widespread perception of risk, younger Canadians are more likely to consider alternative mortgage lending, calling it flexible and innovativeTORONTO — Homeownership is a goal for many Canadians, but even as prices have declined in parts of the country, a volatile financial landscape has made the goal harder to finance. A new study from CMI Financial, Canada’s premier private mortgage lender, finds that while only six per cent of Canadians have used an alternative mortgage, more than half (56 per cent) of Canadians who used alternative mortgages have seen an improvement in their long-term financial position.The 2026 Canadian Private Mortgage Lending Report, conducted by Angus Reid, reveals a disconnect between Canadians’ perception of alternative lending and lived experience.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againLimited familiarity may be contributing to the negative public perception of private mortgages and their value for borrowers. Only one in four (26 per cent) Canadians have either personally considered using an alternative mortgage lender or know someone who has, while three-quarters (74 per cent) have had no direct or indirect exposure. Just six per cent of Canadians have used an alternative lender themselves, and another six per cent have considered one but ultimately chose not to proceed.However, the experiences of those who have used private mortgage lenders tell a different story. Nearly one third of Canadians who have used alternative lending found it to be a smart choice that allowed for flexibility (31 per cent). The findings suggest that as traditional mortgage lending becomes more challenging for Canadians, alternative lending may prove to be more valuable than its reputation implies.“Canadians’ financial lives look very different today from how they were in decades past. The economics have largely changed, while the criteria for traditional mortgage financing have only become more stringent,” says Bryan Jaskolka, CEO of CMI Financial. “More people are self-employed, participate in gig work, or earn income in ways that do not always fit traditional mortgage criteria, and it’s not generally in favour of the younger generation.”“As people continue to work towards the milestone of homeownership, they need more flexibility from mortgage providers, not less,” he says. “The right mortgage solution can give them the flexibility to work towards financial stability and move forward with home buying.”What is alternative mortgage lending?Alternative mortgage lending, also known as private lending, is loans provided by individuals or private lenders instead of traditional financial institutions like banks and credit unions. Offered across varying loan durations, they often serve as alternatives for borrowers who may not qualify for traditional financing due to credit history, income structure, or property type. Private lenders put greater emphasis on the borrower’s plan and property equity for mortgages. Despite higher interest rates, borrowers often use it as a bridge toward traditional financing.How do Canadians perceive alternative lending?Canadians’ individual perceptions of alternative lending broadly mirror what they believe is public opinion. When asked for their personal view, Canadians overall are most likely to describe it as a “last resort” (39 per cent) or “risky” (37 per cent). Meanwhile, more than a third (37 per cent) also believe that the broader public views alternative lending negatively.The awareness gap remains broad. Despite nearly two-thirds of Canadians (64 per cent) having at least heard of alternative lending, only six per cent say that they are very familiar. This suggests that individuals are forming opinions based on limited understanding, and is influencing how they consider it as a viable financing option.Regional differences in perception also vary. The report finds that Ontarians are more likely to have used an alternative mortgage lender (9 per cent), while only 15 per cent of Quebecers reported using or considering a private mortgage.Canadians earning less than $50,000 annually are the least likely to consider it, with 38 per cent viewing it as risky. Meanwhile, Canadians earning more than $100,000 are more likely to consider it (45 per cent), and they’re also the income bracket with the highest awareness and familiarity (72 per cent).How did alternative mortgage lending turn out for Canadians who used it? Positively.The alternative lending story turned out well for Canadians who leveraged this option. A majority (56 per cent) who have used alternative lending report that it improved their long-term financial position, while only one-third (33 per cent) say it didn’t have an impact. Very few (11 per cent) indicate that it negatively affected their finances.Financing a first home or a primary residence was the most common reason for Canadians turning to alternative lending (71 per cent). Others have used it to purchase an investment property (11 per cent), a second or third mortgage (7 per cent), or refinancing (7 per cent).Among those who have used alternative lending for a home purchase, 56 per cent considered it for a better interest rate or more favourable mortgage terms than traditional mortgages, such as those from major banks.Mortgage brokers also play an important role in educating borrowers about other options available to them. Among Canadians who have considered alternative lending, more than half (52 per cent) say they first learned about it through a broker. This suggests that professional guidance helps dispel uncertainties and stigma around alternative lending, creating a clearer understanding of how it fits a borrower’s current financial situation.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.Despite 37 per cent of those aged 18-34 still seeing alternative lending as risky, 67 per cent of those who opted to use it reported it helped their financial standing, and that they considered alternative lending because of better mortgage rate/terms (80 per cent).Who’s most likely to consider alternative lending? Not the BoomersMidlife Canadians (aged 35 to 54) appear to be more engaged with alternative lending than the older generation (aged 55 and above). More than one in three (37 per cent) say they are familiar with alternative lending, compared with 28 per cent of the older group.The openness of those aged 35 to 54 reflects their greater potential to consider private mortgages in case of inability to access traditional financing (51 per cent).The difference may reflect where these two groups are in their life stages. Midlife Canadians may be purchasing a home or managing changing household expenses, compared to the more mature generation who are more financially stable, already retired or moving towards an early retirement.“The economy is entirely different today. The labour and housing market has shifted, and Canadians’ financial profiles have changed dramatically,” according to Jaskolka. “Canadians’ openness to alternative options says a lot about the financial challenges they are facing, making it more difficult to get ahead than older generations when they were at a similar life stage. Alternative lending can act as a bridge towards conventional financing while they stabilize their financial situation. This doesn’t mean it’s the right solution for every borrower, but it shows that these solutions should be assessed based on someone’s circumstances rather than reputation alone.”Despite this, across the country, 67 per cent of Canadians overall say they faced no barriers to securing a mortgage, but for those that did (33 per cent), inability to build personal savings and the high cost of real estate were the biggest barriers.The following reasons were cited:Limited down payment savings: 10 per centHigh property prices: 8 per centSelf-employment or irregular income: 7 per centStress test requirements: 3 per centCredit history: 2 per centOther: 3 per centAbout CMI Financial GroupCMI Financial Group is one of Canada’s largest non-bank lenders, providing institutional-grade private credit and investment management to high-net-worth individuals, investors, family offices, and institutional partners. With more than 20 years in business and over $4 billion in mortgages funded, CMI bridges the gap between borrowers underserved by traditional banks and investors seeking consistent, asset-backed returns. For more information, visit https://thecmigroup.ca.View source version on businesswire.com: For further information or press inquiries, please contact: CMI Financial Group Meagan Simpson Account Director msimpson@catgorycomms.comNotice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.