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

TORONTO — 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.

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Limited 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.”

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.

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).