Alternative mortgage lender CMI Financial Group announced Monday that it has secured a senior financing facility with Royal London Asset Management, one of the United Kingdom's largest asset managers. The credit facility funding of $100 million will help grow the Canadian non-bank lender's lending capacity for residential mortgages.
Positive Outlook for Canadian Housing Market
Despite ongoing concerns about Canada's housing market, this financing from one of the U.K.'s largest asset managers signals that investors have a positive long-term outlook for the Canadian residential lending sector and real estate environment, CMI said in a release. The funding will accelerate CMI's origination capacity in the Canadian residential mortgage market, underscoring the growing demand for high-quality private credit assets.
CMI has funded $4 billion in mortgages since its inception 20 years ago. The lender currently provides residential mortgages to borrowers who do not qualify for traditional Schedule A bank underwriting, while also offering asset-backed mortgage products for investors.
CEO Comments on Financing
Securing financing from an institution of Royal London Asset Management's calibre reflects the strength of our platform and the quality of the team behind it, said CMI chief executive Bryan Jaskolka. This facility will enable us to continue growing our business and providing best-in-class lending and investing solutions to Canadians.
CMI said Royal London Asset Management's deployment of capital into the Canadian mortgage market shows that investors have a positive long-term outlook on residential real estate in Canada and its lending sector. It also underscores the growing role of private credit in the country's mortgage market.
Reliable Borrowers
CMI also noted that Canadians are historically reliable borrowers, with national mortgage arrears at 0.27 per cent as of January, one of the lowest rates among advanced economies.
