Homebuying hasn't spiked over the summer, but plenty of borrowers still need financing
Purchase activity in Canada’s housing market isn’t exactly surging, with high borrowing costs and an uncertain economic outlook continuing to deter would-be buyers from making a move.
But while the year to date has seen a challenging environment for mortgage lenders and brokers alike, other business opportunities are arising – not least in the alternative space, where plenty of Canadians are turning to meet their borrowing needs.
Armando Diseri (pictured top), chief sales officer at Alta West Capital, told Canadian Mortgage Professional that his company was continuing to see clamour for its lending solutions even with homebuying appetite remaining low.
“We’re seeing a lot of interesting deals – tough deals, but there are still opportunities in the market where we’re able to continue to do business,” he said. “We’re starting to see more refinances, people taking advantage of second mortgages and the HELOC product, as well as credit card consolidations.
“That’s really where the opportunities right now lie, and also in business-for-self people. We’re starting to see more and more of those borrowers coming to us that are looking for financing, be it a first or second mortgage, that are just missing the mark with traditional lenders. And we’re able to accommodate them.”
Hopes of summer rate drops have been dashed by the Bank of Canada’s decision to keep its benchmark rate unchanged in recent months, while fixed rates have also been on the up (although bond yields slipped last week).
What’s more, there’s no end in sight to the economic uncertainty that’s gripped Canada throughout the year, with negotiations ongoing between Canadian officials and their US counterparts on an end to the trade war but no sign of a deal yet.
Still, the central bank is widely expected to resume cutting interest rates before the end of the year, a development that Diseri said would likely spur a slight uptick in homebuying.
“Hopefully, rates will be dropping and that will benefit a lot of customers that are in a variable rate and for us, where we have different vehicles that are based on the Bank rate and the prime rate, we’re able to give a little bit more competitive pricing as rates drop going forward,” he said.
“But I still think it’s going to be turbulent. I think customers, now more than ever, are going to be needing brokers to help out in their situations because things are getting a little bit tougher. Things are a little bit more complicated when it comes through that application process and how to fit the client with the right institution.”
Canada’s economy contracted for the second straight month in May, with gross domestic product declining 0.1%, according to new Statistics Canada data. The figure matched the agency’s advance estimate and followed a similar decline in April.https://t.co/wqTSmjmg8W
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 1, 2025
Brokers urged to tap into alt-lending opportunities
It’s no secret that the growth of alternative lending has gathered pace in recent years, fuelled by a range of factors including reduced lending appetite among Canada’s banking giants.
Diseri said the current climate had brought the value of alternative lending into sharp focus, highlighting the ability of alt-lenders to meet borrowers’ needs where other institutions were unwilling or unable to.
Mortgage brokers, unsurprisingly, have started to take notice. “What we’re seeing now is more and more brokers that were focused on predominantly A business now reaching out and wanting to learn more about the private and MIC [mortgage investment corporation] spaces,” he said, “because they’re starting to realize that it’s becoming a larger segment in the overall mortgage industry. I think that’s a trend that we’ll continue to see going forward.”
Canadian Mortgage Summit set to tackle challenges, address growth strategies
Diseri will take to the stage at the upcoming Canadian Mortgage Summit as part of a panel on how private and MIC lenders are stepping up to the plate for clients – and how brokers can work with those entities.
Set to take place on Wednesday, September 17 at the Pearson Convention Centre in Brampton, the Summit – always a much-anticipated event in Canada’s mortgage industry calendar – will provide an invaluable opportunity for brokers and lenders to network and share strategies, Diseri said.
“You have A lenders, you have B lenders, you have private lenders and MICs,” he said. “This is an opportunity to really ask those questions – especially if you’re new in the industry. What better education can you get than listening to the speakers that are up there all day?
“You have access to so many different lenders where you can ask questions, give scenarios, find out what everybody’s offering. This industry’s always changing and there’s always new products and pricing. The only way you can figure out and understand what’s out there is going to an event like this – especially when it’s free.”
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