Private mortgage awareness gap persists, report finds

“Canadians’ financial lives look very different today from how they were in decades past,” said Bryan Jaskolka, CEO of CMI Financial Group, which has funded more than $4 billion in mortgages over more than 20 years in business. “The economics have largely changed, while the criteria for traditional mortgage financing have only become more stringent.”

Widespread unfamiliarity shapes perception

Despite nearly two-thirds of Canadians (64 per cent) having at least heard of alternative mortgage lending, only six per cent describe themselves as very familiar with how it works. That limited understanding appears to be driving negative perceptions: 39 per cent of respondents called private mortgages a “last resort,” while 37 per cent described them as “risky.”

Only one in four Canadians (26 per cent) has either personally considered using a private lender or knows someone who has. Three-quarters have had no direct or indirect exposure at all. For advisors working with clients who are struggling to qualify through traditional channels, this knowledge gap represents both a challenge and an opportunity.

The role of brokers in closing that gap is already evident. Among Canadians who have considered alternative lending, more than half (52 per cent) say they first learned about it through a mortgage broker – underscoring how professional guidance shapes borrower confidence and decisions.

Who is actually turning to private mortgages

The most common reason Canadians sought out a private mortgage lender was to finance a first home or primary residence (71 per cent). Among those borrowers, 56 per cent considered alternative financing because it offered better rates or more flexible terms than major banks could provide.