A woman, her twin, and their husbands walk into a broker’s office... While this may sound like the beginning of a joke, it’s actually a real-life example of what mortgage professionals are seeing in the alternative lending space.
The foursome was facing the arithmetic of West Vancouver real estate prices. Their solution? Go in on a home together.
“Twenty years ago, living with your sibling or another couple was unheard of, but we’re seeing a lot of these unique setups including tons of multigenerational housing,” says Jared Stanley, COO of
Neighbourhood Holdings. “They aren’t bad borrowers; they’re just in complex situations. They may be self-employed, on commission, going through a separation, attempting a tax cleanup, or sitting on a pending sale. We’re providing much-needed flexibility.”
The new alt borrower: beyond bruised credit Alternative lending looks a lot different today than it did a decade ago. Confronted with sky-high home prices and a grinding rate environment along with income streams conventional lenders weren’t built for, people are getting creative – and mortgage professionals must respond in kind.
Borrowers have become more complex as the gig economy grows, asking the black-and-white nature of traditional lending to accommodate the fits and starts of supplemental jobs via UberEats or Taskrabbit, for example. Approximately 14 percent of Canada’s population is self-employed; many juggle a nine-to-five with part-time jobs. New-to-Canada professionals is one group that has strong fundamentals but may face an uphill battle due to lack established history.
“The typical alternative borrower is now a financially stable, income-capable client whose credit history or income structure doesn’t fit outdated lending frameworks,” says Avish Buck, SVP and COO of MCAN Financial Group and president of MCAN Home Mortgage Corp. “The income picture isn’t as clear-cut as it once was.”
The industry, in other words, is in its alt era by necessity. While it may not be everyone’s first choice, it’s far from the fallback it once was. Joel Cote, COO of Haventree Bank, keeps a close eye on the space. Pressures driving borrowers are well documented, as even people with existing mortgages face renewal hurdles and LTI limits, along with complex documentation.
“Those things add up, and the compound impact over the last few years has taken the alt space from the edge of the fringe to more mainstream,” Cote says. “We’ve evolved quite extensively from a stereotypical lender of last resort. It’s now more of an intentional path, one that supports the growing segment of a wide range of borrower types. Meeting those needs is critically important for Canadians, and we do it very well.”
Buck agrees, adding that borrowers are also much more informed than they were in the early days of alt.
“They understand the trade-off a lot better: they want a path forward that protects their monthly cash flow, gives them stability, and keeps them moving toward their longer-term goal.”
That informed borrower now exists in a more sophisticated market. Competition within the alternative lending space, particularly among mortgage investment entities (MIEs), has driven meaningful improvements over the past decade. Speaking for the MIE space, Stanley classifies it as hyper-competitive – and that competition has “forced a lot of groups to level up and improve their processes, disclosures, technology, and most importantly, their transparency.”
Those improvements drive trust and, consequently, an increasing number of brokers are moving to MIEs from traditional privates.
“It used to be whoever has the gold makes the rules – that’s really not the case anymore. You have to listen to your customers and constantly improve.”
Cote’s clear that venturing into the alt space hinges on “the right option for the right borrower at the right time.” Knowing which option fits is one thing; getting it across the line is another.
Leading with the story, hair and all What can brokers do to excel in the space? Implement FBI hostage negotiation techniques, says Stanley. Chris Voss’ Never Split the Difference might prove an unexpected resource: the former FBI hostage negotiator argues that speaking the other party’s concerns aloud – before they raise them – builds trust and moves a situation collaboratively toward resolution.
The top-performing alt brokers Stanley works with have figured this out, whether they’ve read the book or not. They don’t document dump. They don’t mince words. They lead with the bad. Some going so far as to “tell me straight up, ‘the borrower admits they were an idiot,’” he says with a laugh.
“Then they get into what happened and why, and what plan is now in place going forward. It makes underwriting files so much easier because you can just focus on the solution. Underwriters don’t want to play detective, and if they find something it erodes trust. Imagine biting into an apple and there’s a worm in it. You’d be pretty hesitant to take a second bite.”
Cote adds his own warning: don’t make the underwriters reverse engineer a story. That narrative is key in a segment where you’re working away from the prime product cookie-cutter checklist, so be upfront. Does the deal have hair on it? At Haventree, that doesn’t trigger an automatic no. The
philosophy is simple: bad things happen to good people, and typically it’s a short-lived experience. So don’t gloss over it, he advises.
For Buck, a broker’s role comes down to framing. Skillful, clear presentation upfront saves you in the end, delivering a better and less stressful client experience.
“The difference between a great broker and one who’s not as well versed is how they paint the picture and provide the details required to make it work,” Buck says, adding that success on the alternative side requires understanding the lenders operating in the space and the products available, including nuances like prepayment penalties and renewal fees.
It also demands a deep grasp of what each client needs. What life cycle are they in? Are they downsizing? Heading into retirement? This is an area where brokers can’t afford to be shortsighted.
“The brokers that go the extra mile will end up with clients who stay with them,” Buck says, and Cote adds that it’s worth the effort for repeat business and referrals.
“The alt space is not the place where you put a problem,” he says. “It’s where you bring a customer options to create stability.”
Success is tied to the long-term outcome, not simply sticking them with alternative to get them approved. Stanley brings it back to Cote’s intentional-path comment.
“Groups like us exist because we want to see borrowers resolve a challenge, graduate, and move on,” he adds.
Cote also notes that it’s OK to not have all the answers. Brokers have resources in their partners, who are “here to set the right expectations, which enables brokers to have the right conversation with their client because they’ll know what to expect.”
In a market increasingly defined by complexity, speed, certainty of close, and clear communication matter more than ever – and that’s what a solid alt lending partner should provide.
Partner with lenders who walk the talk Addressing the number of lenders in the competitive alt field, a broker once commented that the choice of which to work with was a heavy one because that lender becomes part of the client experience. The right partner strengthens trust; the wrong one causes real damage. Buck took that statement to heart.
“When a broker works with MCAN, it means they trust us with their client, and that’s something we take seriously,” Buck says. “Trust is the core of any relationship.”
Tied to trust is consistency, which MCAN has demonstrated by continuing to lend through periods where competitors paused or pulled back. Brokers notice that kind of commitment and dependability, and Stanley sees the same principle at Neighbourhood. There are no “gotcha moments” because everyone honours commitments, walking the talk throughout the process. That’s one of the company’s top internal values.
A lender that respects the core of a broker’s role is also critical. Brokers are small business owners, and one of Cote’s first priorities when he joined Haventree was to supercharge that perspective.
“You have to think of them as entrepreneurs who took a leap to help Canadians and grow a footprint,” he says. “Being a good partner means understanding that they’re not just placing a transaction. This is them building their business.”
From there, the rest follows naturally, including clarity and accessibility when a broker needs to move fast. Cote notes that brokers should understand how a potential lender actually processes a deal – not just who the BDM is, but the underlying
technology capability. That shapes what to expect around speed versus a more manual review, and it’s a reasonable question to ask before committing to a partnership.
Overall, the consensus is that tech is worth investing in with one caveat: tools should lift administrative drudgery or support ease of use but never replace the human connection of the relationship business. As Stanley puts it, “we don’t pay underwriters for their ability to type in data; we pay them for their judgement,” and Buck draws the same line at MCAN. People are at the centre of every solution: AI can cut redundancy, but its real power is in supporting the team’s hands-on approach.
“If I said to a broker, talk to my chatbot, it won’t work,” he says. “Alternative lending is dynamic. There’s always nuance that takes experience and empathy to navigate.”
The people-first thread is a through line at MCAN. Buck points to the ICON program, through which the company has provided over $400,000 in free mortgage payments to clients going through difficult life events. Their brokers nominate them and Buck often delivers the cheques in person, noting that “when you see the whole ecosystem connect – the client, the broker, the lender all coming together – that’s the moment that defines how we show up. It’s powerful.”
A foothold in shifting sands The market over 2025 and into 2026 is defined by renewals turning into refinances. Elevated rates held for longer than most expected have acted as a progressive tax on Canadians – not just stretching dollars further but also eroding the ability to keep pace with broader economic volatility. Debt restructuring has become as central to the alt conversation as homeownership access, and that shift demands a different kind of knowledge from brokers.
“A lot of brokers, unless they’ve been around a long time, may not have seen anything like this,” Cote says.
The Haventree team recognizes a distinct pattern: a customer returns expecting a straightforward renewal and discovers that accumulated debt makes the numbers unworkable. Markets out east don’t carry the equity-appreciation buffer of bigger centres
like Toronto or Vancouver. You make the current climate manageable, Cote notes, “not by lowering standards, but by putting borrowers on that intentional path.”
As renewal conversations shift toward refinance, the focus moves beyond fitting borrowers into a narrow lens toward understanding their full story and creating a clear, practical path forward. That complexity is exactly where MCAN stands apart. As Buck puts it, “Our model has always been about looking beyond the surface of a file, understanding the borrower’s story, and working with brokers to find a solution that reflects today’s reality.”
There are reasons for measured optimism, however. Inventory is coming to market, and while values in some areas remain depressed, the pressure is slowly easing. The transitionary nature of this period, though, requires brokers to be more conversant with alternative products and credit boxes than they may have needed to be before.
As the alt space matures, borrowers are arriving complex rather than compromised. Brokers who know the products, lead with the story, and choose their lender partners well are positioned to do some of their best work in exactly the kind of market others find untenable.
Published July 27, 2026
Haventree Bank is a Canadian federally regulated Schedule 1 bank that exists to be a catalyst for financial security and upward mobility for Canadians underserved by the traditional financial system. With its specialized and experienced team, Haventree Bank works closely with the mortgage and deposit broker community to recommend the right mortgage and GIC deposit solutions for its clients. Haventree Bank takes an empathetic approach to help hard-working Canadians reach their goal of home ownership. Their GIC deposits offer competitive rates and are available through various wealth management platforms. More information about Haventree Bank can be found at www.haventreebank.com.
MCAN Mortgage Corporation, operating as MCAN Financial Group, is a publicly traded company on the Toronto Stock Exchange (TSX: MKP). MCAN provides shareholders with access to returns generated from investments in the Canadian real estate market. The company operates across single-family residential lending, residential and commercial construction lending, commercial lending, and strategic private investments, including mortgage funds and publicly traded real estate investment trusts. MCAN also offers CDIC-eligible term deposits as a stable source of funding. Through its wholly owned subsidiary, MCAN Home Mortgage Corporation, MCAN originates single-family residential mortgages nationwide. Structured as a flow-through Mortgage Investment Corporation, MCAN distributes taxable earnings annually and operates under federal regulatory oversight.
Neighbourhood Holdings, one of the largest alternative mortgage lenders in Canada with national reach, is here to make alternative lending simple, straightforward, and transparent. We exist to bridge the gap between prime and private lending, offering flexible solutions that empower people to reach their financial goals. By leveraging advanced technology and automation, we streamline approvals and reduce friction across the lending process. As a forward-thinking lender, Neighbourhood is raising the bar in the alternative space – bringing professionalism, ethical practices, and innovation to every interaction. We focus on speed, transparency, and dependable value to empower mortgage brokers to serve clients with confidence.
Approximately 60% of outstanding Canadian mortgages were set to renew in 2025 or 2026
The renewal wave
Over 1.2M mortgages came up for renewal in 2025 alone
Average monthly payments projected to rise 10% for 2025 renewals and 6% for 2026 renewals
57% of Canadians renewing in 2025 expected their payment to increase
Sources: Bank of Canada, CMHC, Royal LePage
Nearly 2.7M Canadians
are self-employed, representing 13.2% of
the employed population
CANADA'S SELF-EMPLOYMENT PICTURE
Self-employment grew 3% year over year as of March 2025
665,000 Canadians – 2.3% of the population aged 15 to 69 – did paid work through a digital platform in 2024
Source: Statistics Canada
“We’ve evolved quite extensively from a stereotypical lender of last resort. It’s now more of an intentional path, one that supports the growing segment of a wide range of borrower types”
Joel Cote,
Haventree Bank
“The typical alternative borrower is now a financially stable, income-capable client whose credit history or income structure doesn’t fit outdated lending frameworks”
Avish Buck,
MCAN
“They aren’t bad borrowers; they’re just in complex situations... We’re providing much-needed flexibility”
Jared Stanley,
Neighbourhood Holdings
Jared Stanley
Neighbourhood Holdings
Joel Cote
Haventree Bank
Avish Buck
MCAN
Industry experts
Canada’s alternative lending space has shed its fallback reputation. Leadership from Haventree Bank, MCAN Home, and Neighbourhood Holdings discuss the evolved alt borrower, what separates great brokers in the space, and how to find opportunity in a shifting market
Alt lending has come of age
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Entering the mortgage industry in 2008, Jared Stanley has navigated a landscape of profound transformations. Now chief operating officer at Neighbourhood Holdings, Stanley has constantly embraced changes, spearheading innovative processes and strategies that drove the lender to $2 billion in volume by April 2025.
Embracing advanced technology has been pivotal in Neighbourhood Holdings’ approach. With Stanley leading a team of dedicated professionals, the company's mantra emerged: “What gets measured gets managed.” This has driven Neighbourhood Holdings’ success in underwriting complex files, process automation, and product development. Committed to elevating the alternative lending industry, the lender is setting new standards by leveraging AI and advanced technology.
Neighbourhood Holdings
Jared Stanley
Joel (Joe) Cote, chief operations officer at Haventree Bank, is a seasoned executive with over 25 years of experience, spanning payments, lending, and growth leadership across Canadian FIs and a high-growth fintech. He has a strong track record of turning complex challenges into clear and actionable strategies, leveraging technology to modernize end-to-end experiences for clients, partners, and team members.
Haventree Bank
Joel Cote
Avish Buck is chief operating officer of MCAN Financial Group and president of MCAN Home Mortgage Corporation, where he leads the company’s residential mortgage business, sales and marketing, term deposits, and strategic corporate initiatives. Since joining in 2020, he has helped drive significant growth and shareholder value while fostering an award-winning culture of innovation and high performance. With more than 15 years of experience in financial services and real estate finance, Buck has held senior leadership roles across operations, underwriting, technology, servicing, marketing, investor relations, and risk. Recognized as a Global 100 Mortgage Professional, he is an MBA, CPA, CFA, and Harvard AMP graduate.
MCAN
Avish Buck