Expanding horizons: CMI’s strategic growth in Canada’s private lending sector

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From regional brokerage to leading national lender: CMI’s Todd Poberznick on scaling responsibly

AMID THE complexities of the current real estate market, CMI Canadian Mortgages (CMI) has not only continued to expand its geographic footprint across Canada but has also achieved significant milestones that underscore its robust position in the private lending sector. CMI currently oversees a mortgage portfolio valued at approximately $750 million, a testament to its prudent management and strategic acumen. A remarkable achievement in CMI’s journey is surpassing $2.5 billion in lifetime mortgage fundings this year.

CMI Canadian Mortgages Inc. (CMI) is a private mortgage lender, working exclusively through the mortgage broker channel. With a reputation for transparency, professionalism, ethical lending, and exceptional service, CMI takes a common-sense approach to partnering with brokers to serve a diverse range of borrowers, ensuring accessible solutions available to all. Widely recognized as a tech-forward and innovative industry leader, CMI is one of Canada’s fastest-growing companies and one of the country’s largest private lenders, with over $2.5 billion in lifetime mortgage fundings. Founded in 2005 as a family-owned mortgage brokerage, CMI has grown to become a multifaceted and award-winning leader in the Canadian non-bank financial services market.

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“Our approach became more assertive as we established our presence, later broadening our operations to include Alberta. Despite the province’s strong housing market, it was underserved by private lenders”

Todd Poberznick, CMI

Despite the volatility that characterizes today’s real estate market, CMI’s leadership views the demand for private financing as stable. This perspective is rooted in a deep understanding of market dynamics and a commitment to serving the financing needs of Canadians. “Our focus on expanding our reach and enhancing our services has allowed us to maintain stability in these uncertain times,” says Todd Poberznick, vice president of national sales. CMI’s strategic expansions and the adaptation of its product line to meet regional needs have positioned the company as a national lender of choice within Canada’s broker community.

Poberznick elaborates, “Our approach became more assertive as we established our presence, later broadening our operations to include Alberta. Despite the province’s strong housing market, it was underserved by private lenders. The decision was straightforward, motivated by the thriving oil industry and the appealing economic landscape of the region, with Calgary and Edmonton becoming our primary targets. Over time, we also ventured into smaller communities and other provinces, gradually building our footprint.

Poberznick says, “As we extend into more rural and smaller communities, the nature of our offerings evolves to align with the requirements of these locales. Despite these adaptations, the core essence of our product remains uniform across the country, ensuring that there is no fundamental distinction in what we provide, regardless of the location.” A key component of CMI’s strategy has been a significant investment in expanding the workforce, particularly emphasizing the importance of increasing its business development team. Recognizing the critical role of personal interactions in securing deals through the broker network, CMI prioritized placing more representatives on the ground. As a result, CMI has tripled their broker relations personnel across the country, with a notable concentration in Ontario.

Poberznick also notes, “Parallel to bolstering our sales force, we’ve been diligently working to refine our underwriting processes. Our goal is to ensure that our technological infrastructure scales with our expanding operations, streamlining the process of receiving, approving, and funding deals. This focus on technology and process optimization is crucial for maintaining efficiency and responsiveness, enabling us to meet our commitments without compromising on service quality.”

“We are acutely aware of the risks associated with rapid expansion, particularly the danger of over-promising and under-delivering,” says Poberznick “To avoid such pitfalls, we have adopted a cautious approach to growth, ensuring that our expansion does not outpace our capacity to deliver consistently.” As a private lender, CMI operates outside the rigid frameworks that govern traditional financial institutions, affording them the flexibility to employ a more intuitive approach to underwriting and deal approvals. This flexibility enhances CMI’s capacity to forge more collaborative relationships with its broker partners. Unlike

This contrasts sharply with the norm in traditional lending, where a strict division of roles exists between brokers, who prepare and submit deal proposals, and underwriters, who evaluate these submissions without offering feedback for improvement. CMI diverges from this practice by actively engaging with brokers to fine-tune deal submissions, which not only results in more successful deals but also helps to ensure the most suitable solution for the borrower. This system enables mortgage brokers to swiftly submit deals, which are then expedited through CMI’s review process, often resulting in same-day mortgage commitments. Such efficiency is unparalleled in both the banking sector and among smaller private lenders, streamlining the process significantly for brokers and minimizing the need for tedious administrative tasks. Looking ahead, CMI is optimistic about its role in 2024, amid evolving market conditions. Poberznick says, “We’re poised for a busy year, with a significant niche for private lending. Our readiness to support both large urban markets and remote areas showcases our flexibility and commitment to inclusivity.” CMI’s proactive approach in educating over 12,000 brokers underscores its dedication to empowering professionals across the country, reinforcing its position as a leader in the private lending sector.

Strategic expansion: Building a national presence

Unique approach to lending and brokerage relationships

Published March 14, 2024

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“Our product line has been consistently tailored to suit the unique characteristics of each market we enter, ensuring our solutions are as diverse as Canada itself”

Todd Poberznick, CMI

Originating in 2005 as a modest brokerage in the GTA founded by Bryan Jaskolka, CMI transformed in response to the 2008 financial crisis, addressing the void left by

traditional banks in private lending. This shift from broker to lender not only catered to a burgeoning market demand but also pioneered a new era in Canadian private lending. By leveraging technological advancements and a human-centric approach, CMI has offered flexible, transparent financing solutions, making private lending a vital and viable option for a wider audience.

The CMI advantage: Expertise, flexibility, and partnership

Despite the national scale of operations, CMI’s products and services are finely tuned to meet regional demands. “Our product line has been consistently tailored to suit

the unique characteristics of each market we enter, ensuring our solutions are as diverse as Canada itself,” says Poberznick. CMI differentiates itself through direct lending, offering flexible solutions tailored to the unique needs of brokers and their clients. The company’s brokerage relationship managers (BRMs) ensure a personalized approach, fostering long-term relationships and facilitating efficient, custom solutions. This partnership ethos, combined with CMI’s digital deal submission and rapid funding process, enhances the broker and borrower experience, making CMI a preferred partner in private lending. The company’s core product offerings have largely remained consistent, with customization driven primarily by location to cater to diverse investor preferences and regional demands. For example, in Toronto, transactions involving amounts ranging from one million to two million dollars are quite common, contrasting significantly with the financial landscape of rural Alberta, where such figures are far from typical. This geographical variance necessitates adjustments in CMI’s lending practices to accommodate different investment scales and risk factors inherent to each area.

Technology and a human-centric approach

conventional lenders, which process loan applications through a generic and impersonal system of underwriters, CMI assigns each broker partner a dedicated brokerage relationship manager.