New trends are emerging in the alternative and private markets amid a tumultuous market
The challenges facing Ontario’s housing and mortgage markets are well documented: trade tensions with the US have darkened the economic outlook, with lower immigration levels also weighing on demand and rising unemployment creating plenty of strain.
Against that backdrop, plenty of lenders are doubling down on the markets they know best within the province – and there’s no sign of panic about borrowers’ ability to withstand the turmoil, according to IC Savings vice president, business development Joe Rosati (pictured top).
He told Canadian Mortgage Professional the company was maintaining a positive approach and continuing to carve out business even despite a dramatic year for the national economy to date.
Toronto may have been the epicentre of a big drop in average prices since the market slowed, but Eastern Ontario – which includes the Ottawa market – has seen prices increase slightly.
“Market dynamics vary across Ontario depending on location, property type and specific neighbourhood characteristics,” Rosati pointed out. “As a result, some areas have seen increases in average home prices, while many others are experiencing declines.
“Affordability, inventory, and demand differ significantly by region. We continue to focus on urban areas, where we have strong market familiarity. Homeowners have proven to be resilient and continue to meet their mortgage obligations.”
Evolving borrower profiles and tighter qualification criteria among major lenders, meanwhile, is leading plenty of homeowners and hopeful buyers towards the alternative and private lending spaces.
Last week, the Financial Services Regulatory Authority of Ontario (FSRA) showed that the private mortgage market saw a mild decline across the province in 2024, but continues to play an important role – particularly for those borrowers who can’t qualify with leading banks.
What brokers need to know about the private and alternative space, according to Rosati, is a different focus among those lender types.
At IC Savings, for instance, “instead of relying on automated scoring models, we focus on getting to know the individual borrower and understanding their story,” he said. “This approach allows us to offer the mortgage product that best suits the borrower’s needs.
“Our goal is to help borrowers achieve their financial objectives, which may include recovering from a temporary setback.”
Exit strategies, comprehensive research key for brokers and borrowers
Also top of mind for lenders in that space is a clear exit strategy for borrowers, for whom private loans are a temporary solution aimed at eventually graduating back to a conventional mortgage.
And the lowest advertised rate is not necessarily the best option for borrowers who need a private mortgage, Rosati said.
“When a member can transition to a prime mortgage product at the end of their term, we view that as a strong indicator of success in our partnership,” he said. “With economic uncertainty and more borrowers struggling to qualify, brokers play a vital role in navigating the complex world of lending.
“Finding the right lender and product involves much more than simply comparing rates – and brokers should help clients understand all aspects of available mortgage products, build a gameplan to improve credit, consolidate debt, or demonstrate income stability so they can transition to a prime mortgage product.”
More Canadians are locking in fixed mortgage rates at renewal. Broker Chris Allard of Smart Debt Mortgages says borrowers want stability amid economic uncertainty and Ottawa’s spending review.
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 21, 2025
Learn more about the trend.https://t.co/ccRWCXTqSc
Countdown continues to 2025 Canadian Mortgage Summit
Trends in alternative lending and growth strategies for brokers and lenders in the space are just some of the topics up for discussion at the fast-approaching Canadian Mortgage Summit, set to take place in Toronto on September 17.
Rosati will appear on a panel alongside Philip Beer (Community Trust), Susan Thomas (Haventree Bank), Gita Cartwright (MCAN Financial), and Isabel Iydlin (First National Financial), moderated by Wealth One Bank’s Caterina Vlahos, to discuss how alternative lenders are stepping up to meet changing borrower needs.
That event – hosted by CMP, and free to attend for brokers – promises “timely insights and strategies to meet the trends and disruptions defining the future of lenders,” Rosati said.
Brokers can still register for the event, which has been preapproved for four CEUs by Mortgage Professionals Canada and offers a host of invaluable networking and educational opportunities for the mortgage industry to continue growing and evolving.
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