Private lenders, alternative lenders, and Mortgage Investment Corporations (MICs) all play significant roles in Canada’s mortgage landscape. Understanding the differences is crucial for borrowers, mortgage brokers, and potential shareholders seeking clarity on how mortgage financing works beyond traditional banks.
At Calvert Home Mortgage, we operate as a Mortgage Investment Corporation (MIC), a type of Mortgage Investment Entity (MIE). This structure allows us to pool shareholder capital, combine it with a bank credit facility, and deliver fast, flexible, and transparent mortgage solutions.
We’re not a private lender, and we’re not categorized as an alternative (or “B”) lender. Instead, our MIC model blends the flexibility often associated with private capital with stability, regulation, governance, and professional management of an established financial entity.
For us, it’s not just about financing – it’s about living our mission to be the most trusted mortgage lender in Canada so that our customers, investors, and partners succeed and grow in thriving communities.
Whether you’re a real estate investor, mortgage broker, or homeowner, here’s what sets Calvert Home Mortgage apart.
Definitions: Private, Alternative, and Mortgage Investment Corporation (MIC)
Private lenders and alternative lenders both play an important role in Canada’s mortgage landscape, particularly for borrowers who don’t fit the strict criteria required by traditional banks. The terms “private lender” and “alternative lender” are often used interchangeably, but they’re not the same.
What is a Private Mortgage Lender?
A private lender is typically an individual, a family office, or a small group that lends its own funds directly to borrowers.
- Decisions are often equity-focused, with more emphasis on property value than borrower credit.
- Loans are usually short-term, interest-only, and tailored on a case-by-case basis.
- Private lending can provide quick access to capital, but rates and fees are often higher and vary significantly between lenders.
What is an Alternative Mortgage Lender?
An alternative mortgage lender (often called a “B Lender”) is a non-bank financial institution that serves borrowers who don’t qualify with traditional “A Lenders” like big banks.
- These lenders operate under regulatory frameworks of the Office of the Superintendent of Financial Institutions (OFSI) and offer structured financing solutions.
- They often work with borrowers who have non-traditional income, higher debt ratios, or lower credit scores.
Alternative lenders typically require at least 20% down and charge higher interest rates than banks, along with possible lender and broker fees.
What is a Mortgage Investment Corporation (MIC)?
A Mortgage Investment Corporation (MIC) is a type of Mortgage Investment Entity (MIE) defined under Section 130.1 of the Income Tax Act. It is a Canadian investment structure that pools shareholder funds to provide diversified mortgage financing. MICs are required to distribute 100% of their net income to shareholders on an annual basis.
- Funds are professionally managed and invested across multiple mortgages.
- MICs may also access a bank credit facility to increase lending capacity.
- They are subject to regulatory oversight, annual audits, and restrictions on activities.
- Income is distributed as dividends to shareholders, often with tax advantages (eligible for RRSPs, TFSAs, etc.).
At Calvert Home Mortgage Investment Corporation, this is the model we follow. Our MIC structure gives us the stability of institutional oversight and the flexibility to deliver fast, tailored mortgage solutions to real estate investors, mortgage brokers, and homeowners. Additionally, it provides shareholders with transparency and diversification.
Transparency You Can Trust
One of the biggest concerns with private lending is the uncertainty it presents. Rates, fees, and terms can be unclear, with changes often occurring late in the process. At Calvert Home Mortgage, transparency is a cornerstone of our business. We clearly outline fees, rates, and terms upfront, ensuring you know what to expect. Our commitment to clear communication means no surprises – just confidence in your financing partner.
Since 1975, we’ve funded over 10,000 real estate deals and loaned more than $2.2 billion to real estate investors, mortgage brokers, and homeowners across Canada.
These numbers represent the trust and satisfaction of over 10,478 clients who have chosen us to support them. They speak to the strength of the relationships we’ve built through our core values: service, trust, education, people, and solutions. Every client we serve, and every dollar we lend, reflects our team’s dedication to providing exceptional service and expert support.
Flexible Solutions
We understand that no two projects or clients are the same. That’s why we provide flexible mortgage solutions tailored to your goals, whether it’s a flip, BRRR (Buy, Renovate, Rent, Refinance), bridge, interim, or term financing.
Our mortgages are designed to make your life easier:
- We offer both fully open and closed terms to align with client needs.
- Open Terms
- Ideal for clients planning to pay out within the first year
- Payments: Interest-only, minimizing monthly carrying costs.
- Flexibility: Pay out at any time with no penalty.
- Renewal Fee: A no renewal fee option for borrowers in good standing.
- Closed Terms
- Best suited for clients who expect to hold their mortgage longer term.
- Payments: Amortized (principal and interest)
- Flexibility: Early payout penalties apply if discharged before term end.
- Renewal Fee: In most cases, no renewal fee is charged unless otherwise negotiated.
- Open Terms
- We have options to reduce rates or fees based on borrower strength and deal specifics.
- We work with each client to find a structure that balances cost and flexibility.
Behind every mortgage, we see the people and possibilities. We know that supporting your success helps communities thrive. That’s why we take the time to understand each deal and create solutions that move you forward. At Calvert Home Mortgage, we don’t look for reasons deals can’t be done. We look for ways to make them work.
Our team works closely with you to structure terms that align with your (or your client’s) strategy and timeline.
In-House Valuations & Streamlined Legal Process for Speed
Third-party appraisals can delay deals and add costs. That’s why we provide in-house valuations conducted by our experienced Real Estate Analysts. This process ensures speed and accuracy, so you can move forward quickly and confidently.
No outside appraisal is required for deals up to $1.5M, saving you time and money while keeping your project on track.
In Alberta, only one lawyer is required to complete the transaction because our team handles much of the due diligence and documentation internally. By taking on this work ourselves, rather than outsourcing, we remove the need for a second lawyer to represent both sides. This not only saves you time and legal fees but also keeps the process more streamlined. The result: faster closings with fewer bottlenecks.
This is part of our commitment to service and delivering the fastest originations and fundings in the industry. With reliable valuations and efficient processes, we help you act quickly on opportunities without sacrificing accuracy or care.
More Than Just a Lender
Because our mission is to be the most trusted mortgage lender in Canada, we measure success not just in dollars lent but also in stronger clients and healthier communities. We don’t see ourselves as just a source of capital – we’re a partner in your success.
With over 50 years of experience, we’ve built a strong reputation for supporting real estate investors, mortgage brokers, and homeowners through education, resources, and above-and-beyond service.
- We educate clients and partners, so everyone grows stronger.
- We invest in people, because caring for our team is the best way to care for our customers.
- We provide solutions, not roadblocks, empowering our clients to achieve their goals while revitalizing housing supply in Canadian communities.
At the heart of it all is our vision:
Homes in revitalized communities are possible for all. Every time we fund a deal that helps a real estate investor restore a distressed property or helps a family move into a home, we bring that vision closer to reality.
Partnering for Your Success
At Calvert Home Mortgage, we’re proud to be a Canadian Mortgage Investment Corporation that blends flexibility with clarity, speed with structure, and financing with a genuine commitment to people and communities.
When you work with us, you’re not just securing capital. You’re partnering with a team dedicated to helping you succeed today and grow stronger tomorrow.
Ready to see how our solutions could support your next deal? Contact our team today to explore how we can help you move forward with confidence.
For Alberta inquiries, contact Kaelan Nelson.
Email: kaelan@chmic.ca
Cell: 587-585-4571
Office Phone: 403-278-0249
Book a meeting here.
For Ontario inquiries, contact Katarina Jarossy and Dan Werner.
Based in the GTA?
Email: katarina.jarossy@chmic.ca
Cell: 416-799-2553
Office Phone:1-888-752-4642
Book a meeting here.
Anywhere else in Ontario:
Email: dan.werner@chmic.ca
Cell: 416-316-5336
Office Phone: 1-888-752-4642
Book a meeting here.
Frequently Asked Questions
Q: What is the difference between a private lender, an alternative lender, and a Mortgage Investment Corporation (MIC)?
A: Private lenders are typically individuals or small groups lending directly on single deals, equity-based, and tend to have higher rates and fees.
Alternative (or “B”) lenders are financial institutions outside of banks that serve borrowers with structured mortgages.
Mortgage Investment Corporations (MICS) are a type of Mortgage Investment Entity (MIE), regulated under the Income Tax Act. They pool shareholder capital with professional management and diversification. Calvert Home Mortgage operates as a MIC.
Q: What types of mortgage solutions does Calvert Home Mortgage offer?
A: We specialize in short-term and flexible financing solutions, including Flip/BRRR (Buy, Renovate, Rent, Refinance) loans, Bridges, Interim Purchases, and more.
Q: Who does Calvert Home Mortgage work with?
A: We partner with mortgage brokers, real estate investors, and homeowners who need alternative financing options that banks may not provide.
Q: Is Calvert Home Mortgage regulated in Canada?
A: Yes. As a Mortgage Investment Corporation (MIC), we operate under Section 130.1 of the Income Tax Act, comply with securities regulations, and undergo annual audits.
TL;DR: Why Work with Calvert Home Mortgage?
- We’re a Mortgage Investment Corporation (MIC) – a type of Mortgage Investment Entity (MIE) – not a private lender or an alternative lender. We combine flexibility with structure and transparency.
- Over 10,000 deals funded and $2.2B loaned since 1975.
- Fast, flexible mortgage solutions for real estate investors, mortgage brokers, and homeowners in Alberta and Ontario. These include Flip/BRRRs (Buy, Renovate, Rent, Refinance), Bridges, Interim Purchases, and more!
- Fully open terms, interest-only payments, and a no renewal fee option for borrowers in good standing.
- Focused on supporting your personal and financial success and building stronger communities.
