When central banks flood the system with liquidity, asset prices go to the moon, and risk management becomes an afterthought. But when the music stops—when interest rates spike eight times in 18 months as they did in 2022-2023, liquidity evaporates, and debt-ridden borrowers start sweating—suddenly, prudence isn’t just a buzzword.
The past few years have been a masterclass in economic whiplash—historic rate hikes, a mortgage market in flux, and a housing crisis–characterized by supply shortages, rising demand, affordablilty, stricter lending rules, and government policy responses–that won’t go away. Against this backdrop, Antrim Investments has emerged as a steady hand in the storm, leveraging decades of experience in private mortgage lending to offer investors a rare mix of stability and yield.
This was the backdrop against which Will Granleese, CEO and Portfolio Manager at Antrim Investments, sat down with investment industry veteran Bob Simpson1 for a no-nonsense due diligence discussion on the Antrim Balanced Mortgage Fund. It was a revealing conversation, one that highlighted the structural changes taking place in Canada’s mortgage market, the role of private lenders in filling institutional gaps, and the strategic positioning that has made Antrim the largest residential private lender in the country.
Antrim’s Origins and Evolution
Antrim didn’t emerge overnight. Founded in 1972 by Granleese’s father, the firm cut its teeth as a mortgage brokerage, directly matching individual lenders with borrowers. By the early 1990s, however, the market was shifting. Mortgage Investment Corporations (MICs) were on the rise, offering a pooled investment structure that combined liquidity with diversification. Seeing the opportunity, Antrim pivoted into the MIC business and never looked back.
“Previously, even the average second mortgage was $50,000 to $100,000,” Granleese explains. “To be diversified, you needed a huge portfolio. MICs solved that problem, offering professional management, diversification, and liquidity.”
That shift—from brokering to structured mortgage lending—laid the foundation for what would become the Antrim Balanced Mortgage Fund, a $1-billion+ vehicle providing residential private loans across Canada.
The Private Lending Boom: Who’s Borrowing, and Why?
If you think private mortgage lending is about lending to the desperate, you’re missing the bigger picture.
Antrim isn’t filling the void left by deadbeat borrowers. It’s filling the void left by banks and credit unions whose rigid underwriting standards exclude large swaths of self-employed Canadians, high-net-worth individuals with non-traditional income streams, and homebuyers who fail to meet stress test thresholds despite having significant equity.
“Most of our borrowers are self-employed,” Granleese notes. “They’ve owned homes for 10+ years and have significant equity, but they don’t meet the banks’ cookie-cutter income requirements. That’s where we step in.”
To illustrate, take the borrower rejected by a major bank because they can’t prove their income under traditional underwriting models. They’ve got excellent credit, a 50% down payment, and enough liquidity to cover the mortgage. The bank won’t touch them—but Antrim will. And that’s how Antrim has maintained rock-solid loan performance while traditional lenders grapple with delinquency risks.
Weathering the Rate Storm: How Antrim Managed the Shock
In a world where mortgage rates doubled overnight, many lenders scrambled to reprice loans, triggering a cascade of defaults. Antrim played it differently.
“We weren’t nice. We were prudent,” Granleese emphasizes. “We renewed existing mortgages at the same rate while pricing new money at market rates.”
That approach—essentially grandfathering existing borrowers while ensuring new funds earned 9.95%—helped Antrim manage risk, maintain loan performance, and avoid the liquidity crunch that has plagued competitors.
At a time when some lenders were jacking up rates and losing borrowers, Antrim maintained stability. And that stability translated to investor confidence.
The Power of Scale
Not all mortgage funds are created equal. The difference between a boutique fund with 50 mortgages and Antrim’s portfolio of 2,200 loans is more than just numbers—it’s a fundamental advantage in liquidity management.
“Every day of the year, we have mortgages paying out,” Granleese says. “That means we can provide liquidity on a T+2 basis, while other private lenders lock investors in for months.”
In an industry where redemption freezes are becoming increasingly common, Antrim’s ability to cycle capital seamlessly is a major competitive edge.
The New Age of Private Lending?
If you believe housing markets are on the brink of collapse, Antrim’s thesis might seem overly optimistic. But Granleese sees structural forces at play that provide a strong floor for real estate prices.
“We have a housing crisis in Canada,” he states bluntly. “That crisis [that shortage] is putting a firm floor under home prices, which secures our portfolio.”
At the same time, elevated interest rates are creating compelling returns for investors. The Antrim Balanced Mortgage Fund is currently yielding in the 9% range, a figure that not only outpaces government bonds but also avoids the volatility of public markets.
A Fixed Income Alternative That’s Actually Working
Traditional bond funds are dead money. Over $422 billion is parked in Canadian bond funds that have returned zero over the past three years. For investors seeking yield without extreme volatility, private lending—done prudently—offers a viable alternative.
With 50 years of risk management experience, a diversified mortgage book, and a strategy that aligns incentives between investors and borrowers, Antrim has built a private credit machine that is delivering consistent returns without the drama of public markets.
As Granleese puts it: “We’re not trying to be flashy. We’re just doing what works.” And right now, that’s paying off.
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Footnote:
1 "Ep. 17 All About Antrim Investments | Investing in Mortgage Investment Corporations." Private Debt & Equity, 25 June 2024.
