Alternative Financing Strategies in Edmonton for 2025: MICs, Real-Property Secured Loans & Private Lending

As the housing and lending landscape in Alberta evolves, especially in Edmonton, it’s not just about traditional bank mortgages anymore. Many borrowers and investors are turning toward more flexible, creative financing solutions — namely: Mortgage Investment Corporations (MICs), real property-secured loans, and private lending. At Sandhu & Sran Mortgages in Edmonton, we’re well-positioned to help you navigate these options.

Why these options matter right now

• With interest rates having moved up in recent years, and traditional lenders tightening criteria, many borrowers find they don’t fit the “conventional bank box”.

• Real-estate investment and development continue to require financing that banks are sometimes less willing to provide (e.g., rapid turnarounds, non-standard income sources, unique collateral).

• For investors, MICs present a way to participate in real-estate-backed lending, offering returns tied to real property and secured debt, which can be compelling when compared to other fixed-income alternatives.

• For borrowers in Edmonton and Alberta broadly, having access to private lending or real‐asset secured loans can open doors to purchases or investments that may otherwise stall.

  
  

What is a Mortgage Investment Corporation (MIC)?

A MIC is a Canadian investment vehicle that pools investor capital and uses it to make mortgages (or secured loans) backed by real property. Some key points:

• MICs must distribute their net income to shareholders, making them flow-through entities for tax purposes.

• Many MICs target short‐term real property‐secured mortgages (residential, sometimes commercial) that banks may bypass.

• Recent data shows that MICs in Canada are generating yields in the ~8-10% range, depending on the risk profile.

• For you in Edmonton: MIC‐backed lending means there is more opportunity for borrowers or investors who are flexible and understanding of the structure.

Why this is relevant here: For someone in Edmonton looking to invest in real property or to access a non‐standard financing structure, a MIC offers an alternative channel. As brokers, we at Sandhu & Sran can help connect you or your investment vehicle to trusted MICs, or help you structure the underlying real property-secured loan that the MIC would fund.

Real Property-Secured Loans: The foundation of many alternative

financing deals

At the heart of MICs and private lending is the idea of a loan secured by real property. Here’s why that matters:

• Security matters: With collateral (a piece of real estate) backing the loan, the lender (or MIC) is more comfortable providing funds when traditional criteria may not be met.

• Flexibility in terms: Real property-secured loans may have shorter terms, higher interest rates, customized amortization, and different repayment structures than standard bank mortgages.

• Use cases: These loans can fund purchases, renovations, developments, land assembly, or bridge financing. In Edmonton’s evolving market, whether you’re buying an investment property, entering a development project, or refinancing, this flexibility is useful.

• Risk must be managed: Because these loans often carry more risk (higher LTVs, non-traditional borrowers, shorter term), both lenders and borrowers need to understand the terms clearly and the exit strategy must be solid.

For borrowers in Edmonton, real property-secured loans mean you might secure financing for a property acquisition or investment that a bank might hesitate to fund — subject to sound underwriting, strong collateral, and a credible repayment/exit plan.

Private Lending: Speed, Flexibility & Opportunity

Private lending is the fastest, most flexible channel of the three discussed. Here are the highlights:

• Speed: Private lenders often approve and fund loans quicker than banks, which is helpful when timing is tight (property closing deadlines, unique deal structures).

• Flexibility: Private lenders review the deal differently — emphasis is often on the value of the real property collateral, the borrower’s exit strategy, and deal merit rather than strictly income documentation or ultra-tight criteria.

• Use cases in Edmonton: You might use private lending to bridge between the sale of an existing property and purchase of a new one, to fund a renovation before refinancing, or to purchase a property where conventional financing is unavailable.

• Costs & Terms: Private lending usually comes at a higher cost (higher interest rate, higher fees, shorter term) compared with conventional mortgages. But if used strategically, it can be very effective.

At Sandhu & Sran in Edmonton, we have access to private lending networks. If traditional banks say “no” or “not yet”, a private lending route may provide the path to move ahead — then later refinance into a longer‐term conventional mortgage when the property is stabilized or conditions improve.

Putting it all together: What this means for Edmonton buyers & investors in 2025

If you’re operating in the Edmonton/Alberta market, here’s how to think about these options:

• Investor looking for yield: Consider MICs. If you have capital and want exposure to real‐estate‐secured debt rather than owning property directly, MICs could be a fit. Many are seeing 8% + returns, backed by property collateral in Western Canada.

• Borrower with a non-traditional scenario: Maybe you’re self-employed, or the property is unique, or you need fast turn financing. Real property-secured loans or private lending may be the route.

• Investor buying property, but banks say no: Use private lending to get in, complete the deal, add value, then refinance into conventional when the project is ready.

• Buyers wanting to move fast in a changing market: With more supply and shifting conditions in many Alberta markets, being ready with flexible financing gives you an edge.

Why work with Sandhu & Sran Mortgages in Edmonton for these solutions

• We are licensed independent mortgage brokers in Edmonton with access beyond the big banks — including networks of private lenders and connections to MICs.

• We understand local market dynamics: inventory, development patterns, regional regulatory environment in Alberta.

• We help you structure the deal: Whether it’s a MIC investment, a real property‐secured loan or a private lending scenario, we guide you on terms, risk, exit strategy and suitability.

• We help you prepare your path back to conventional financing, if that’s your goal — layered strategy matters.

Final Thoughts

In 2025, the Edmonton real estate and lending market is entering a phase where flexibility and creativity matter as much as the rate. If you’re willing to consider alternative financing routes — Mortgage Investment Corporations, real property-secured loans, or private lending — you open doors that might otherwise remain shut.

If you’d like to explore whether one of these strategies is right for you (whether as borrower, investor or property professional) — give us a call at the Edmonton office of Sandhu & Sran Mortgages. We’ll walk you through the scenarios, assess your fit, and help map the right financing path.