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CMI Financial Group has closed a senior financing facility of up to $100 million with U.K.-based Royal London Asset Management to grow its lending capacity for residential mortgages.
It is a sign of faith in the economics of Canadian housing, CMI’s CEO Bryan Jaskolka said in an interview with RENX Homes.
“I think it’s a recognition on the medium- and long-term fundamentals of the market that exists here in Canada.”
CMI is a Toronto-based private mortgage lender primarily servicing Canadians who do not qualify for loans from traditional sources such as banks. The loans are offered as real-estate backed investments. CMI has funded approximately $4 billion in mortgages and manages approximately $1 billion in assets today.
Royal London is part of mutual life, pensions and investment firm Royal London Group. It managed approximately $371 billion in assets as of Dec. 31, 2025.
Investment backed by steady Canadian economy
CMI was introduced to Royal London through its connections in Europe, where it has operations. There is a synergy between the two as firms based in Commonwealth companies, Jaskolka said.
CMI is "in a growth mode, and we’re looking to expand our ability to help service more Canadians and more homeowners by expanding both product offerings, areas and ultimately the amount of available lending capital at our disposal,” he explained.
The senior financing facility is a bet on the Canadian housing market, even with headwinds such as indications of slow spring home sales. While Jaskolka said it is not at its peak, Canada has a stable housing sector when compared to many areas of the globe, he explained.
The nation's arrears rate (overdue mortgage payments) is “reasonable on a global level,” and Canadians have a “strong, long-term track record of paying their mortgages,” Jaskolka explained.
The Canadian arrears rate was 0.28 per cent as of Feb. 28, which the Canadian Bankers Association said is low among advanced economies.
While media and industry coverage often narrows its attention on the Toronto market, particularly condos, that has hit a steep downturn, Jaskolka said the Quebec and Alberta housing markets are performing well and conditions for single-family housing have somewhat stabilized.
Also, there have been positive trends in the Canadian homebuilding sector such as a tax rebate for new home sales and a Canadian economy that has been resilient against trade shocks, he continued.
More investments to be announced
CMI "has built a strong and scalable platform, and we believe it is well-positioned to benefit from continued growth in demand for specialist mortgages,” Alok Bedekar, fund manager of private credit at Royal London, said in a release.
The senior financing facility may be the first of a series of investments into CMI. The company has other transactions it is working on with other large, global investment firms, Jaskolka said.
The mortgage lender is “positioning for (a) massive growth period,” he said. “We’re looking at this as being the beginning of a strong, new institutional program as opposed to a one-time transaction.”
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