There's plenty to prioritize in choosing the right lending solution, says PHL Capital exec
Mortgage brokers, lenders and their clients are continuing to navigate a volatile market, with economic turbulence clouding the outlook and creating plenty of uncertainty for the remainder of the year.
That chaos, worsened by US president Donald Trump’s decision to launch a global trade war weeks after taking office in January, arrived with scores of Canadian homeowners already facing a sharp uptick in interest rates when renewing their mortgage and buyers confronted with stubbornly high purchase costs.
Unsurprisingly, alternative and private lenders are proving an increasingly influential force in the current mortgage market, offering solutions for brokers and borrowers who aren’t able to access more conventional lending options.
But choosing the right private lender is easier said than done – and brokers should be discerning, and do their homework, before recommending a specific solution to their client.
That’s according to Aaron Duhra (pictured top), vice president of sales and origination at PHL Capital Corp., who told Canadian Mortgage Professional brokers should focus on transparency and good communication – as well as a readiness to foster longstanding and productive connections – in their choice of lender.
“In this market, brokers need to prioritize lenders who are not only well-capitalized, but also committed to long-term relationships,” he said. “It’s easy to chase yield, but in uncertain times, execution matters more than ever.
“Look for lending partners who are consistent, transparent in their decision-making, and flexible when the deal needs it. And don’t underestimate the value of communication. A fast ‘no’ is sometimes more valuable than a slow ‘maybe.’”
President Donald Trump’s sweeping new tariffs officially took hold Thursday, as he barrels forward with his turbulent push to reshape global trade. https://t.co/Hj2376rmg7
— Canadian Mortgage Professional Magazine (@CMPmagazine) August 8, 2025
In a chaotic market, top lenders are closely watching emerging trends
The news cycle has kicked into overdrive once again in 2025, with new developments emerging seemingly by the hour on the US-Canada trade dispute.
But it’s been an eventful year for the mortgage and housing sectors too, as a cost-of-living crisis continues and with no end in sight to the supply and affordability crises at play in the market.
Duhra said lenders should keep a keen eye on those trends and others that can offer a key insight into what could be coming down the line for the economy in the months and year ahead.
“We’re closely watching regional real estate markets for signs of distress or resilience,” he said. “We’re also tracking how the regulatory landscape evolves both federally and provincially as governments look to balance housing affordability with financial stability.
“On the borrower side, we’re paying close attention to consumer credit health and any uptick in delinquencies that might signal broader stress.”
But while it’s important to choose the right lender in the alternative space, Duhra also emphasized the transformation the sector has undergone. While it may once have been viewed as a last-resort option for borrowers to salvage a deal, the space has been viewed as an increasingly viable option for Canadians in recent years for various reasons.
“An encouraging trend that we’ve seen is more sophisticated borrowers turning to the alternative space – not out of desperation, but strategy,” he said. “Whether it’s for speed, flexibility, bridge financing, construction or optimizing their capital stack, there’s a growing recognition that private lending is no longer just a fallback. It’s a viable financial tool.”
Canadian Mortgage Summit draws closer
As an eventful year for the mortgage industry continues, Duhra is scheduled to appear at the Canadian Mortgage Summit at Brampton’s Pearson Convention Centre on September 17 as part of a panel discussing private lenders and mortgage investment corporations (MIC) and their role in the current market.
Registration for the event, which is free for mortgage brokers to attend, is still open. Duhra said it will provide an important opportunity for attendees to gain perspective on the twists and turns of this year’s market.
“The mortgage landscape is evolving rapidly, and it’s critical for brokers and lenders alike to understand not just where we are, but where we’re heading,” he said.
“I hope attendees will walk away with insights they can apply immediately in their business, as well as a few new relationships that will help them navigate what’s ahead. There’s a lot of opportunity out there for those who are prepared.”
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