aveo Flex40 answers housing affordability woes

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‘Missing middle’ mortgage aims to rescue Canadians from homeownership limbo

IT'S A tough time for Canadians looking to get on the property ladder. Rising inflation costs coupled with economic uncertainty and creeping rates have left many individuals worried about paying their bills and considering refinancing their mortgages. Research from Abacus Data found that for 43 percent of Canadians, the current housing crisis is adding to their overall financial stress; 35 percent say that their quality of life has dropped; and 33 percent reveal that they now suffer from mental health challenges because of the stress. Andrew Gilmour, senior vice-president at CMLS Residential, explained to CMP that this crisis has led to the creation of a new alternative lending product to help Canadians achieve financial freedom and their homeownership dreams – aveo Flex40.

CMLS is one of Canada’s largest independently owned mortgage services companies. Founded in 1974, CMLS provides a wide range of residential and commercial real estate financing solutions, asset management, along with mortgage servicing and mortgage lending technology. As a part of the Nesto Group, we are building the Canadian mortgage ecosystem of the future.

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“The program optimizes cash flows, giving clients a higher affordability power and an improved ability to qualify for a mortgage. This shifts the conversation from just rates to suitability”

Andrew Gilmour, CMLS Residential

“CMLS’s mission has always been to provide Canadians with innovative homeownership solutions,” explained Gilmour. “This is why we position aveo Flex40 as the ‘missing middle’ between traditional alternative lenders and the private space, offering a unique product position. “We differentiate ourselves through our clear and transparent fees and a defined path for clients to graduate to better financial standing with a prime mortgage. Namely, aveo Flex40 offers several significant advantages that greatly improve cash flow for clients. These include a 40-year amortization, extended GDS/TDS ratios, and no loan-to-income requirement on some of our products.” And this help can’t come quickly enough. Research found that, among non-homeowners, 72 percent want to buy a home but 45 percent are pessimistic about that dream becoming a reality. Furthermore, among those aged 18–29, 41 percent still hold out hope – but most say their optimism is caving in as housing costs climb and savings plummet. Aside from homeownership, aveo Flex40 is also designed to help clients with debt reconsolidation and improve their overall financial picture, especially in the current climate. The extended amortization and other flexible features included in aveo Flex40 lead to better cash flow, the ability to pay off other debts, and improvement of the client’s financial foundation.

Homeownership dreams

Published August 11, 2025

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“CMLS’s mission has always been to provide Canadians with innovative homeownership solutions. This is why we position aveo Flex40 as the ‘missing middle’”

Andrew Gilmour, CMLS Residential

Canada’s housing crisis hits hard

of Canadians say the housing crisis is adding to their financial stress

43%

say their quality of life has taken a hit

say their mental health challenges are directly tied to housing difficulties

35%

33%

Source: Abacus Data

Graduation to prime

Aveo Flex40 goes beyond just securing that mortgage – it improves clients’ overall financial stability. “Unlike many private lenders, we are invested in our clients’ long-term financial well-being and aim to provide a streamlined qualification process for existing clients seeking to move to a prime mortgage product once their credit has improved,” said Gilmour. “We offer both alternative and prime products, which is unique in the market, ensuring that as clients improve their credit scores, we can continue to support them with suitable options.” The aveo Flex40 product aims to provide a comprehensive client solution beyond just a mortgage. As Gilmour

explained, CMLS considers itself a reliable partner with significant capital and a variety of lending choices, offering a full suite of products for brokers and their clients. “Our key differentiator is our commitment to helping clients ‘graduate’ out of their credit curve, which is something many competitors do not focus on or even actively work against by charging more at each renewal.”

A typical aveo Flex40 client

It’s this uber-flexible and empathetic approach that makes aveo Flex40 stand out in a crowded market. While there’s no real stereotypical candidate for the new product, it is specifically designed to help people who are stuck in a difficult and financially unstable position. “A typical client who benefits would be someone looking to refinance their mortgage due to credit card debt, student loans, or other life events,” explained Gilmour. “The aveo product allows them to qualify based on their credit criteria, pay off existing debts through the refinance, and then have a lower mortgage payment due to an extended amortization, resulting in more money in their pocket each month. This debt reconsolidation also leads to improved credit scores, enabling them to ‘graduate’ over time to a prime mortgage product.”

Working Canadians feel financially stressed

of Canadians are currently financially stressed

41%

That’s up from 37% in 2023

of Canadians who are stressed are spending over 40% of their income on housing alone

60%

Source: National Payroll Institute

Flex40 also offers significant buying power for purchases because in most cases there is no stress test nor loan-to-income test. With a 40-year amortization at the contract rate and extended ratios, it provides a great solution for clients who might not qualify for a traditional mortgage due to debt ratios or insufficient free cash flow. “As mentioned, the program optimizes cash flows, giving clients a higher affordability power and an improved ability to qualify for a mortgage,” added Gilmour. “This shifts the conversation from just rates to suitability, helping clients achieve their homeownership goals.”

Broker partnership throughout client journey

Aveo Flex40 isn’t just a win for customers; it’s a big help to brokers too. As Gilmour told CMP, for partner brokers, working with aveo counts toward their volume requirements in the seamless partnership program, a benefit they might not find elsewhere. “Additionally, we aim to streamline the approval process for existing clients and reduce associated costs down the road. Crucially, we want to partner with brokers on client graduation, meaning if a client they brought to us for an aveo Flex40 mortgage later qualifies for a prime mortgage through us, the broker will still receive full compensation for the new deal.”

In an environment where traditional mortgage solutions are falling short for a growing number of financial rehabilitation and long-term homeownership. By addressing both the affordability crisis and the structural challenges faced by borrowers with compromised credit or high debt loads, the product offers tangible relief and a path forward. And, with Canadians under increasing financial pressure and optimism around homeownership waning, this solution arrives at a pivotal time. It’s not just about closing a deal; it’s about creating stability, enabling progress, and building stronger financial futures for both clients and the brokers who serve them.