At CMI, we’re focused exclusively on serving our brokers. As Canada’s premier private lender, we take a common-sense approach to every deal. We understand that every borrower has a unique story – we’re here to support you with the mortgage solutions you need to help your clients.
We excel at creating customized solutions, leveraging the latest technology while providing you with dedicated service to enhance your capabilities as a mortgage professional. We also pride ourselves in our ethical lending practices, and in particular, our integrity and transparency. At CMI, we truly care about our broker partners, and strive to provide your clients with the best possible lending experience.
Over the past few years, we’ve won numerous national company and employee awards for our dedication to the private lending industry. We’re truly honoured to be recognized for these as it affirms our client-focused approach. For more information on what makes us unique, read about the CMI Difference.
No. CMI is dedicated and committed to supporting and servicing our broker partners, providing you and your clients with the highest quality private mortgages solutions. We deal directly through brokers. This means we fully respect any exclusivity agreements you may have in place and redirect all borrowers back to our broker partners or their originating broker. In addition, we refer any borrowers who reach out to us directly back to you, our broker partner.
A private mortgage is an alternative source of financing generally funded by individuals or smaller corporations. Private mortgages are great options for borrowers who can’t get approved by traditional lenders because private lenders are not constrained by the same regulations. In addition, private mortgages are not insured, usually have a shorter term (typically one year or less) and lend to 85% or less of the property value.
Private mortgages can be useful for clients in several situations, including:
Flexibility – Private lenders offer customized mortgage products to match your client’s needs. Our team excels at structuring mortgage solutions for borrowers who don’t fall under the conventional guidelines that many of the banks and insurance companies must follow.
Common-sense approach – Private lenders look beyond a credit score, particularly when clients don’t qualify for traditional bank financing due to credit issues or non-traditional sources of income.
Less documentation – Private lenders do not require as much documentation as traditional lenders. Your client only has to provide the information needed for us to make an informed lending decision.
Faster approvals – Banks can take weeks for an approval, while mature private lenders like us typically offer approvals in a matter of hours. Once a file is complete, private lenders can close a deal in as little as two to four days.
Put simply, you will close more deals with a private lending partner. Building a strong bond with a private lending partner and becoming an expert in private lending gives you an advantage over your competition, especially as traditional lenders continue to make it harder for borrowers to qualify for a mortgage. By offering private mortgage solutions, you also have the potential to earn more commissions and attract new business. Private lenders also provide faster financing, which can be especially beneficial in a competitive housing market. In addition, when you solve problems for your clients, not only have you made a client for life, they are also more likely to make referrals to you.
Learn more about some of CMI’s real success stories on our Unique Client Experience page.
As a national direct lender, there are no geographic restrictions on where we can lend, from large urban cities to smaller towns. The only exceptions are the Territories, New Brunswick and Saskatchewan
We generally lend up to 85% LTV in major urban centres (e.g., Toronto, Calgary, Vancouver) and up to 75% LTV in rural areas.
Private lenders are subject to a less restrictive regulatory environment compared to traditional lenders, like the big banks. Private lenders are able to be more flexible with their lending criteria, offer shorter terms, and lend to borrowers that may not qualify under traditional rules. Even though private lenders are not regulated like the big banks, we are held to a high standard, following provincial guidelines as well as industry best practices.
In addition, established private lenders like CMI have a track record of integrity that validates their business practices. At CMI, one of our primary corporate values is transparency. We pride ourselves on being upfront and open with our clients regarding our products, rates, and fees.
CMI is not a consumer-direct lender, which means we don’t deal directly with borrowers. Instead, CMI works exclusively with our mortgage brokers. To apply for a private mortgage with CMI, we can connect you to one of our preferred broker partners who can assist you with the mortgage application process.
Complete our Contact Form to register with us, and you will hear back once you’re approved. As a preferred broker partner, you can send deals directly to us. In addition, a knowledgeable member of the CMI team is always available to help, whether you have a general question or want to discuss possible solutions for a specific client.
Submit your deals to us via Filogix, Velocity, or Newton. When submitting your applications:
● Select the “Private” option under “Lender Type”
● Select Canadian Mortgages Inc. under “Lender”
For more details, visit our Mortgage Submissions Guidelines page.
The more documentation that you provide, the better terms we can provide to your client (and with a faster turnaround time). Along with your client’s mortgage application, you should also include:
● Credit report
● Proof of income
● Appraisal and MLS listing (if it’s a new purchase)
● Lawyer’s information
● Notice of Assessment
In addition, you should include as much supplemental information as possible. Consider emailing your business relationship manager the following:
● A summary of the file’s highlights to help underwriters understand your client’s needs
● Profile of the client (e.g., business for self, details on credit rating, etc.)
● Property type
● LTV
● Location of property
● Exit strategy
● Closing date
● Reason for financing
Once you submit a complete broker submission package with all the necessary documentation, we can provide your client with an approval and a commitment in as little as a few hours. Once a file is complete, CMI can close a deal in only two to four days (or even faster on a rush basis).
CMI takes great pride in our speedy approval process, especially compared to traditional lenders who can take up to two weeks. We’re even faster than most private lenders. We pride ourselves in approving and financing your deals as quickly as possible.
At CMI, we do not provide a generic list of approved appraisers because we understand that every client is different. We believe in a personalized approach and look at each case as a whole. Contact your Brokerage Relationship Manager and tell us more about your client so we can recommend an appraiser specific to your borrower’s situation.
No, CMI does not co-broker deals. We are a direct lender, which means we work exclusively with brokers, and allow broker partners to manage their own fees and compensation. CMI does not take or expect any fees from brokers or charge borrowers on behalf of brokers.
While CMI does not co-broker deals, there may be an option to roll your broker fee into the borrower’s loan amount. Contact your Brokerage Relationship Manager or Business Development Officer for more information.
The CMI Bundle Mortgage combines a first and second mortgage on the same property to provide financing up to 85% LTV. The mortgage bundle is intended for borrowers who need high ratio financing. CMI offers the same rate and fees on both the first and second mortgage, with two registrations on one title. The borrower would also make two mortgage payments each month.
No, CMI covers the additional legal fees associated with a bundle mortgage. The borrower is responsible for legal fees associated with a single private mortgage transaction.
Generally, each private mortgage transaction requires legal representation for the borrower and legal representation for the lender.
CMI may require a holdback depending on the scope of the renovation or construction project. Subject to the type of refinance, we do not rely on or arrange for a holdback for minor renovations.
In the case of a larger project, a holdback may be required. Smaller holdbacks are generally dispersed in one release, where larger holdbacks may be released in two or three draws.
A holdback is where a lender withholds a certain amount during a construction project to ensure the job is completed. The amount of the holdback is generally equivalent to the estimated cost of the completed project.
A holdback can be as low as $5,000 for smaller projects, like a roof replacement, and higher based on the scope and size of the renovations.
CMI considers lending on land on a case by case basis, generally with additional security.
CMI provides second mortgages behind conventional lenders, such as banks and credit unions. However, we cannot provide a second mortgage behind other private lenders.
Yes, CMI provides mortgages behind collateral mortgages under certain conditions.
The amount of a collateral mortgage will depend on whether the registered amount is revolving. Contact your Brokerage Relationship Manager or Business Development Officer for more information.
Definitely! A blanket mortgage, which is a single mortgage that covers two or more properties, could benefit a client who requires a higher LTV and can offer additional property as security. Using other properties as collateral could also increase the likelihood a more challenging deal or remote property can get approved for financing.
Our private mortgage solutions could benefit developers, real estate investors, or house flippers. It can also save clients additional costs and fees associated with multiple mortgages.
Yes. A private mortgage is well-suited to these types of borrowers. In fact, we specialize in helping borrowers who have a tough time qualifying for a traditional mortgage. This includes clients who may have tax arrears or damaged credit. We also lend to borrowers who have been through a bankruptcy or laid-off.
CMI’s Equity Program could benefit clients who do not have sufficient income to qualify for a traditional mortgage due to a layoff. This program offers an LTV up to 75% in urban markets. You can find more information here.
CMI is a common sense lender. We don’t have a minimum beacon score for borrowers because we understand there’s more to a borrower’s credit worthiness than just their credit score.
CMI offers a wide variety of mortgage terms customized to your clients’ needs. Our terms typically range from three to 12 months, but you can contact your Brokerage Relationship Manager or Underwriter if you need a shorter or longer term. Whether your client needs a first, second, or even third mortgage, CMI offers flexible terms.
Yes, CMI offers open term mortgages, where clients can make prepayments without penalty. We also offer a variation of a closed mortgage. Contact your Brokerage Relationship Manager to structure a deal that suits your client’s needs.
Yes. While we typically offer one-year terms, we can also accommodate clients who need short-term financing. We offer short-term mortgages (including bridge financing) from five days to six months, or longer terms up to 24 months. We can customize the terms to coincide with the maturity date of an existing mortgage, if required. These short-term solutions may be helpful to clients who have a property tied up in a sale, or those who aren’t able to close with their current lender.
At CMI, our typical private mortgages are interest-only (to minimize your client’s monthly payments). However, we can amortize a mortgage up to 40 years, on a case-by-case basis. Be sure to advise clients who want a principal and interest mortgage that monthly payments will be slightly higher.
Yes. We provide prepaid mortgages (for the entire term or a portion of it) depending on your client’s needs.
Prepaid mortgages are a great option for client’s who are challenged due to reduced income or temporary job loss. Prepaid mortgages involve advancing the total value of payments over the term of the mortgage up front as part of the mortgage proceeds on the funding date. A prepaid mortgage allows a borrower to pay off their mortgage faster; however, it usually involves higher interest costs over the mortgage term.
CMI always notifies you, our broker partner, of any upcoming mortgage maturity dates. We will send you a renewal reminder 90 days prior to the renewal date, and additional reminders to both you and your client. We pride ourselves in providing open communication and being there to support our broker partners. In addition, CMI manages all the mortgages we lend. Unlike most lenders, we generally don’t charge the entire lender fee again at renewal. Renewal fees are generally between 1% and 2% of the outstanding balance (subject to market conditions and yield of investment).
CMI’s renewal reminders provide you with an opportunity to reach out to your client and discuss their financing needs and the options available to them. We can also work with borrowers to defer their renewal fee on a case-by-case basis, depending on your client’s needs. CMI does not deal with borrowers directly, so if they reach out to us, we will refer them back to you!
With a private mortgage, your clients can expect a lender fee, legal fees (paid from the proceeds) and appraisal fees (paid upfront). At CMI, we do not charge administration fees or processing fees on closings. You can also be confident that there are no additional hidden fees. We believe in full transparency, and always disclose our fees upfront so there are no surprises to you or your client.
Mortgage brokers should recommend that clients set aside an appropriate portion of their mortgage amount for closing costs, which includes lender, legal and appraisal fees. For more information, see CMI’s blog on additional fees for purchase deals and refinances.
We do not charge an administration fee, or any other hidden supplementary fees for that matter. Other lenders may find ways to hide costs in the form of processing fees or admin fees as a way to present lower rates. At CMI, we believe in complete transparency with our clients.
As a broker, it’s important that you pay attention to the rates and all the fees involved over the full term of the mortgage to truly understand your client’s mortgage costs. To illustrate this, the following comparison calculation shows how hidden fees can result in your client paying more for their mortgage, even when presented with a lower rate. In this example, even though CMI is offering a slightly higher rate, the competing lender’s administration fees and other hidden costs resulted in the client paying more.
Loan $100,000 x 10.99% = $10,990
Total Yield = 10.99%
Loan $100,000 x 9.99% = $9,990 + $1,250 = $11, 240
Total Yield = 11.24%
We typically charge a penalty fee of interest to maturity to a maximum of three months.
If a mortgage is being paid out in the 11th month of a one-year term, we will only charge a penalty fee on the outstanding interest for the remaining one month of the term.
At CMI, we typically only charge interest until maturity within the last three months of a mortgage, which can save your client a lot of money compared to our competitors.
Unlike most lenders, we do not charge the entire lender fee again when your client’s mortgage is up for renewal. Renewal fees are generally between 1% and 2% of the outstanding balance. This fee may be subject to market conditions and yield of investment, as well as the borrower’s repayment history and credit review. In some cases, CMI may be able to work with your client to defer this renewal fee.
When we approve a mortgage with a certain LTV, all closing costs are then deducted from the amount advanced. We do not “cap” lender fees on top of this amount, which would result in an increase in the LTV.
Complete our Contact Form to register with us, and you will hear back once you’re approved. As a preferred broker partner, you can send deals directly to us.
In addition, as our preferred partner, a Brokerage Relationship Manager is always available to help, whether you have a general question or want to discuss possible solutions for a specific client situation.
Not sure how you can submit your mortgage deals to us? We’ve provided detailed information that outlines how you can submit deals to us via Lendesk, Velocity and Filogix.
