Homeownership remains a priority for many Canadians, but volatile economic conditions and stricter lending criteria are making it harder to secure a traditional mortgage. A new national study from CMI Financial, conducted by Angus Reid, shows a sharp divide between how Canadians perceive private lending and how borrowers actually experience it.

Although only six per cent of Canadians have used an alternative mortgage, more than half of those borrowers (56 per cent) say it improved their long-term financial position. The report suggests that limited familiarity is fuelling negative perceptions: three-quarters of Canadians have never personally encountered private lending, and just six per cent consider themselves very familiar with it.

Private mortgages—loans offered by individuals or non-bank lenders—often serve borrowers who don’t meet traditional criteria due to income structure, credit history, or property type. While rates may be higher, they can provide short-term flexibility and act as a bridge to conventional financing.

Despite this, Canadians are most likely to label alternative lending as a “last resort” or “risky.” Awareness varies widely by region and income: Ontarians are more likely to have used private lending, while higher-income Canadians report greater familiarity and openness to considering it.

For those who have used private mortgages, the outcomes are largely positive. Most turned to private lending to finance a first home, and many cited better terms or flexibility compared to traditional lenders. Younger Canadians—despite being more likely to view private lending as risky—reported the strongest financial benefits, with 67 per cent saying it improved their financial standing.

Midlife Canadians (35–54) are also more engaged with private lending than older generations, reflecting the financial pressures facing households still in active home-buying years. As CEO Bryan Jaskolka notes, today’s labour and housing markets look very different from decades past, and many Canadians earn income in ways that don’t fit traditional mortgage models.

While two-thirds of Canadians report no barriers to securing a mortgage, those who did cite limited savings, high home prices, and irregular income as the biggest obstacles—factors that continue to push some toward alternative options.