The Wisdom, Lifestyle & Money Show

Scott Dillingham is a mortgage expert who has helped clients finance over $1 billion in real estate across Canada. In this episode of The Wisdom Lifestyle Money Show, Scott sits down with Milan Djankovic of Keasy MIC to unpack how a mortgage investment corporation can give Canadian investors both private lending cash flow and real estate equity upside — through a LendCity partnership built for RRSP and TFSA capital.

Investors keep asking how to put money to work in private lending real estate Canada without chasing handshake deals. Milan explains how Keasy MIC was structured with Castles counsel as a joint offering: preferred shares through the MIC for income, plus limited partner units for capital appreciation. Canadian mortgage investment corporations like this one focus mortgages on value-add projects, so interest received by the MIC can flow through to investors — while equity participation can accelerate returns when a project executes.

They walk through a Hamilton case: a 10-unit property expanding to 14 with a $600,000 MIC construction loan, then a path toward a CMHC MLI Select exit. Governance matters too — annual BDO audits, exempt market dealer onboarding with KYC and suitability, and regular investor communication. Scott stresses selective underwriting: clear exits and real estate projects, not distressed consumer debt. Risks apply on both debt and equity; LendCity and Keasy review deals so investors can choose cash flow, appreciation, or a mix.

Key Takeaways

• Mortgage investment corporation structures can pair preferred-share income with LP equity so investors tailor cash flow versus capital appreciation.
• MIC investing in Canada often funds value-add mortgages; interest received by the MIC can flow through to shareholders.
• RRSP TFSA mortgage investment options exist when the MIC is set up to accept registered funds — confirm suitability through proper onboarding.
• Real estate equity investing Canada can fill gaps banks leave (land LTV limits, second-mortgage restrictions) when debt alone cannot complete a project.
• Hamilton example: 10→14 units, $600k MIC construction loan, clear exit via CMHC MLI Select after added value.
• Governance: BDO annual audit, EMD know-your-client onboarding, Castles securities structuring, and certificates for investors.
• Private lending real estate Canada works best with underwritten exits — Scott prefers project deals over lending to borrowers already failing payments.
• Ask what is a mortgage investment corporation in Canada before allocating: debt = set interest; equity = upside and downside with the project.

Links and Show References

Milan Djankovic — Keasy MIC — LendCity partnership (investor details via show notes / strategy call).

If you are weighing mortgage investment corporations in Canada — lending vs equity — read the full breakdown: Mortgage Investment Corporation: Lending vs Equity with Keasy MIC. Ready to talk options? Book a free strategy call.

Scott Dillingham is a mortgage expert who has helped clients finance over $1 billion in real estate across Canada. In this episode of The Wisdom Lifestyle Money Show, Scott sits down with Millan Jankovich for a practical look at value-add multifamily investing in Canada—from Toronto duplex and triplex conversions to apartment buildings in Kitchener, Cambridge, and a 107-unit Hamilton complex.

Millan shares how operators earn the right to scale: build a track record on smaller deals, protect investor capital with governance and clean reporting, and keep control of construction, property management, and timelines instead of treating multifamily as passive. Listeners hear real project math—including an eight-unit Cambridge building where rents were roughly 100% below market, rental income rose around 300%, and NOI roughly doubled after a premium renovation.

They also dig into density plays (converting warehouse space into a new residential unit; splitting oversized Hamilton suites to add about 40 apartments) and how CMHC MLI Select fits as a planned refinance exit once a value-add project is stabilized—not as a shortcut around underwriting.

Key Takeaways

• Value-add multifamily investing in Canada is about forcing NOI through renovations, unit adds, and rent resets—not waiting for the market to lift values.
• Scaling from single-family and duplex conversions into apartments usually requires track record, connections, or partners who already have the playbook.
• Vertical integration (construction + property management + development) increases control over timelines, tenant selection, and outcomes—and makes the work more active, not less.
• Governance, accounting, and investor communication are non-negotiable when other people’s capital is in the deal.
• Cambridge example: off-market vacant purchase plus commercial-to-residential conversion moved a building from three residential units to four.
• Cambridge eight-unit example: rents ~100% below market; after turnover and premium renovations, rental income rose ~300% and NOI roughly doubled.
• Hamilton example: 107 units across two buildings; emptied a 73-unit building, pursued ~40 additional apartments by splitting 1,200–1,300 sq ft suites, with a CMHC MLI Select refinance planned after stabilization.
• Duplex and triplex conversions remain a strong “bread and butter” strategy in today’s market for smaller partnership tickets.

Links and Show References

If you are modeling a value-add apartment acquisition or a CMHC MLI Select refinance after renovations, read the full breakdown in our value-add multifamily and MLI Select scale-up guide. Ready to talk financing? Book a free strategy call.

Scott Dillingham is a mortgage expert who has helped clients finance over $1 billion in real estate across Canada. In this episode of The Wisdom Lifestyle Money Show, Scott sits down with Dave Peniuk of Westpac Wealth Partners to tackle one of the biggest blind spots in cross-border real estate investing: U.S. estate tax exposure for Canadians who own rental property, vacation homes, or business assets in the United States.

If you're a Canadian investing in U.S. real estate, you may already analyze cash flow and appreciation — but what happens to your heirs if you pass away with American assets? Dave explains how foreign nationals face a minimal U.S. estate tax exemption (roughly $60,000 for non-residents) compared to the much higher domestic threshold, and how estate tax can be assessed on the full property value at death — not just the gain, as in Canada. For a $250,000 Michigan rental, that could mean a five-figure IRS bill your family must pay before inheriting the asset.

Dave walks through a whole life insurance strategy designed for foreign nationals with a financial tie to the U.S. — including death benefit coverage to pay estate taxes, tax-free proceeds to beneficiaries, and a cash value component that grows in U.S. dollars and can be accessed via policy loans for property repairs or emergencies. Scott and Dave also cover the Canada-U.S. tax treaty, deemed disposition in Canada, when the strategy makes sense versus a quick flip, and how to size coverage based on property value and appreciation.

Key Takeaways

• Canadians who own U.S. real estate may face U.S. estate tax on the full asset value at death — not just capital gains like in Canada.
• Foreign nationals get only a ~$60,000 U.S. estate tax exemption unless treaty planning applies — a major gap most investors ignore.
• A properly structured whole life policy can deliver a tax-free death benefit to cover IRS estate tax bills so heirs don't have to sell the property.
• Cash value grows in U.S. dollars, helping Canadians hedge currency risk and fund property expenses via policy loans.
• Cross-border real estate investing requires asset protection planning — not just acquisition and cash flow analysis.
• The strategy suits long-term holders and portfolio builders more than one-off flips.
• Canadians with an EIN, U.S. business ties, or multiple properties are strongest candidates — speak with a cross-border tax professional.
• Westpac Wealth Partners works with foreign nationals from many countries, not only Canada.

Links and Show References

Dave Peniuk — Westpac Wealth Partners — WestpacWealth.com (Las Vegas office) — LinkedIn: Dave Peniuk

If you own or plan to buy U.S. rental property as a Canadian investor, estate tax and cross-border planning should be part of your return calculation — not an afterthought. The team at LendCity helps Canadian real estate investors with creative mortgage solutions, including financing for cross-border and portfolio growth strategies. Visit LendCity.ca to book a free strategy call and get expert guidance tailored to your situation.

Scott Dillingham, a licensed mortgage broker who has helped clients finance over $1 billion in real estate, welcomes Chris Micucci — LendCity's US Division Lead and a hands-on real estate investor — to discuss why Canadian investors are increasingly looking south of the border for better cash flow and simpler financing. Chris shares how he got started just over a year ago with his first fix-and-flip in Ohio, quickly followed by BRRR deals in Michigan, and how that experience shaped the way he now helps Canadian clients navigate the US market.

One of the most compelling reasons Canadians are entering the US market is the math: properties in Ohio can be purchased for around $100,000 and rent for $1,500 to $1,800 per month, generating cash flow that is extremely difficult to achieve in most Canadian markets today. Chris explains how the US mortgage system is fundamentally different — it is asset-based, meaning lenders care primarily about whether the property cash flows, not about your T4s, employer letters, or income slips. If the house makes a dollar a month, it qualifies for a loan, and the deposit is really the only variable a Canadian investor needs to control.

Scott and Chris dig into the critical nuances of financing as a Canadian (or "foreign national") in the US market. Typical down payments run 30%, dropping to 25% for loans over $200,000. Current rates are in the high sixes to low sevens — higher than Canada, but Chris explains why: US bonds carry a higher yield due to stronger global demand. Importantly, US mortgages are 30-year fixed terms, meaning the rate you lock in today is the same rate you'll pay for the life of the loan with no forced renewals — a major structural advantage over Canada's five-year renewal cycle. After five years, US loans become fully open, giving investors the flexibility to switch lenders penalty-free. Many lenders also allow rate buydowns, letting investors pay upfront to reduce their interest rate and boost cash flow from day one.

The episode also tackles the often-misunderstood topic of Canadian entities for US investing. Chris cautions that going to a US accountant to set up an LLC may actually create problems, since the LLC structure is not recognized in Canada and can lead to complications. Working with advisors who understand both the Canadian and US systems — including cross-border accountants and lawyers — is essential to structuring deals correctly and avoiding double taxation. Scott and Chris emphasize that LendCity's team includes both Canadian brokers and US-based staff with boots on the ground, giving clients a uniquely versatile perspective that a standard American lender simply cannot offer.

Key Takeaways:

• US properties in markets like Ohio offer significantly better cash flow than most Canadian markets, with homes around $100K generating $1,500–$1,800/month in rent.
• US mortgages are asset-based — lenders qualify the property, not the borrower's income, making it far easier for Canadians to qualify.
• Canadian "foreign national" investors typically need 30% down, or 25% down for loans over $200,000, with current rates in the high 6s to low 7s.
• US mortgages are 30-year fixed terms — the rate you lock today is the rate you keep for the life of the loan, with no forced renewal cycles.
• After five years, US loans become fully open, allowing investors to refinance or switch lenders penalty-free at any time.
• Rate buydowns are available in the US, letting investors pay upfront to reduce their interest rate and improve monthly cash flow.
• Proper entity setup is critical — US LLCs are not recognized in Canada, so working with advisors who understand cross-border structures is essential to avoiding double taxation.
• Working with a Canadian-focused team matters — American lenders often don't understand the foreign national lending nuances and may quote rates or LTVs that don't apply to Canadians.

Scott Dillingham is a licensed mortgage broker who has helped clients finance over $1 billion in real estate across Canada. In this episode of The Wisdom, Lifestyle & Money Show, Scott tackles one of the most overlooked risks in Canadian real estate investing: divorce. With Canada's divorce rate sitting at approximately 40%, the impact on real estate portfolios, mortgage qualification, and credit is something every investor needs to understand — whether they're currently married, partnered, or just beginning their investing journey.

Scott walks through the equalization rules that apply in most Canadian provinces, explaining that when married couples separate, the law generally requires that real estate equity be split between spouses — even in cases where the property was purchased before the marriage began. He highlights how JV partnerships can become complicated when a co-investor's relationship breaks down, and why it's critical to have protective agreements in place long before you need them. These are real scenarios Scott has witnessed with clients throughout his career, and the lessons are invaluable for investors at every stage.

From a mortgage qualification standpoint, Scott explains why Canadian lenders require a formal separation agreement — or at minimum a signed affidavit — before advancing any financing during or after a separation. Support payments, alimony, and child support all factor into debt ratios, and lenders are specifically trained to flag deals where a married applicant appears without their spouse. Scott shares how some lenders flat-out refused to proceed without both spouses on the application, demonstrating how serious this issue is in real-world financing scenarios.

Scott also outlines practical protective strategies for savvy investors, including co-habitation agreements, marriage contracts, and the benefits of holding properties in a corporation. He emphasizes the importance of negotiating asset splits internally between separating spouses before engaging divorce lawyers — saving thousands in legal fees while retaining more control over outcomes. Perhaps most importantly, Scott urges investors to have asset protection conversations early in a relationship, before emotions run high and the stakes feel personal.

Key Takeaways

• Canada's ~40% divorce rate makes asset protection planning essential for real estate investors — don't assume it won't happen to you.
• Most provinces require equalization of real estate assets during divorce, including properties you owned before the marriage began.
• Lenders require a separation agreement or signed affidavit before processing mortgage applications for separating spouses, and they actively screen for signs of divorce.
• Support and alimony payments are counted as liabilities in mortgage qualification, reducing borrowing power for both parties.
• Co-habitation agreements and marriage contracts can protect pre-existing assets and inherited wealth from being divided in a separation.
• Corporately held properties may be treated differently during divorce proceedings — speak with a lawyer and accountant to understand the advantages.
• Settling asset divisions internally between spouses saves significant legal fees — a signed affidavit costs a fraction of what contested divorce proceedings do.
• Separate debts and liabilities as quickly as possible during a split to protect your credit score from a former partner's missed payments.

Links and Show References

No external resources were mentioned in this episode.

If this episode got you thinking about how to protect your real estate portfolio — whether you're planning ahead or navigating a separation right now — the team at LendCity is here to help. Scott and his team specialize in creative mortgage solutions for Canadian real estate investors, including complex situations involving separation, partnership changes, and portfolio restructuring. Visit LendCity.ca to book a free strategy call and get expert guidance tailored to your situation.

• (00:00) - Introduction: Divorce and Real Estate Investing

Canada is in the middle of a massive mortgage renewal wave, and for millions of homeowners and investors, the timing couldn't be more challenging. Scott Dillingham, a licensed mortgage broker who has helped clients finance over $1 billion in real estate, breaks down exactly what this renewal wave is, why it happened, and — most importantly — what you can do about it right now. Whether you're a Canadian homeowner watching your payments climb or an investor looking for your next opportunity, this episode delivers practical, actionable strategies to protect your financial position.

The renewal wave stems from the COVID era, when lenders offered an array of short-term promotions and reduced-rate products. Now those terms are expiring all at once, pushing borrowers from rates of 2–3% into today's 4–5% environment. Add in rising fixed rates tied to bond market turbulence — driven by geopolitical uncertainty, tariffs, and global instability — and many Canadians are facing meaningful payment increases at exactly the wrong time. Scott puts the "foreclosure crisis" headlines in perspective while making clear that proactive planning makes all the difference.

The single most powerful tool Scott recommends is the amortization extension. By switching lenders at renewal and refinancing to a 30-year amortization, borrowers can dramatically lower their minimum monthly payment — even if the rate is slightly higher than what their current lender is offering. Scott explains why chasing the lowest rate alone can be a costly mistake, and how thinking about a 30-year amortization like a credit card's minimum payment unlocks flexibility: in tight months, you pay the minimum; in great months, you put extra toward principal and pay the loan off years early. For investors with cross-border portfolios, this cash-flow optimization strategy is equally applicable whether your properties are in Ontario or the U.S. Sun Belt.

Beyond renewal optimization, Scott explores secondary suite financing — including programs through Sage that allow homeowners to finance up to 90% of a property's future value to add an ADU, basement suite, or above-garage unit. Combined with a lower renewal payment, adding a secondary suite can transform a strained budget into a profitable one. Scott closes with a message for investors: periods of market stress are historically the best time to acquire assets, and for those who have optimized their existing portfolio, the runway to move confidently is far wider.

Key Takeaways

• The renewal wave is real but manageable: Millions of Canadians are renewing COVID-era mortgages into higher rates, but strategic planning can neutralize the impact on your monthly cash flow.
• Fixed rates are rising for a different reason than variable: Fixed rates are tied to bond markets — not the Bank of Canada — and global uncertainty is pushing bonds (and therefore fixed rates) higher.
• Switching lenders at renewal lets you reset your amortization: Moving your balance to a new lender allows a full amortization reset to 30 years, which can lower your monthly payment significantly even at a slightly higher rate.
• The "best rate" trap: A lender offering a retention rate well below market often locks you into a short amortization — meaning higher payments overall despite the lower rate.
• Treat 30-year amortization like a credit card minimum: A longer amortization gives you flexibility; you can always pay more when cash flow allows and pay the loan off years ahead of schedule.
• Secondary suite financing is a powerful income lever: Programs through Sage allow up to 90% financing of a home's future value to fund ADUs or basement suites — adding rental income that can offset your mortgage payment entirely.
• Investor opportunity in market stress: Rising renewals and payment pressure create motivated sellers and distressed listings — ideal conditions for investors with optimized portfolios and available financing.
• Optimize now, regardless of market conditions: Whether rates rise or fall, reducing monthly obligations and adding income streams strengthens your financial resilience in any economic environment.

Links and Show References

• LendCity Mortgage Strategy: https://lendcity.ca
• Sage Secondary Suite Financing (mentioned in episode)
• CMHC Secondary Suite Program (note: program was discontinued due to insufficient demand at time of recording)

Ready to optimize your mortgage renewal and protect your real estate portfolio? Visit LendCity.ca to book a free strategy call with Scott Dillingham and his team. Whether you're renewing a primary residence or a multi-property investment portfolio, LendCity specializes in creative mortgage solutions built for Canadian real estate investors.

• (00:01) - Welcome & Episode Overview

In this episode of the Wisdom Lifestyle Money Show, host Scott Dillingham delivers an unfiltered breakdown of the real pros and cons Canadian investors face when purchasing US investment properties. With more Canadians exploring cross-border real estate than ever before, Scott shares the behind-the-scenes conversations he and his team at LendCity have with investors every day — covering everything from politics and taxation to cash flow potential and landlord-friendly laws.

Scott begins by addressing the elephant in the room — the political landscape. Whether investors support or oppose the current US administration, Scott encourages them to look beyond headlines and evaluate each state on its own fundamentals: population growth, employment trends, and landlord-friendly regulations. He draws a parallel to Canada, where investors continued building portfolios regardless of who held office. The key takeaway is clear — base your decisions on market data, not political sentiment.

On the cons side, Scott discusses the potential impact of Canadian capital flowing south of the border. Billions of dollars have been leaving Canada for US investments, and while Scott believes this could push Canadian policymakers toward more investor-friendly reforms, it remains a legitimate concern. He also covers the learning curve of investing in a new country — from understanding US real estate laws and tax structures to building a reliable boots-on-the-ground team. Cross-border taxation adds another layer of complexity, including US estate tax obligations that require a qualified cross-border accountant to navigate properly. Currency conversion is another factor, though Scott notes the exchange rate often works in the investor's favour when collecting US-dollar rental income.

Flipping to the pros, Scott highlights dramatically lower US property prices, where comparable homes can cost a fraction of their Canadian equivalents. He explains how DSCR (Debt Service Coverage Ratio) loans allow Canadian investors to qualify based solely on a property's rental income — no personal income verification or US credit history required. This makes US real estate significantly more accessible for Canadians who may be maxed out on Canadian lending limits. Scott also covers the advantages of landlord-friendly states with no rent control, allowing property owners to adjust rents to keep pace with rising expenses — a stark contrast to Canadian rent control restrictions that can force landlords to subsidize tenant housing costs.

Other major benefits include unlimited property purchases with sufficient down payment, fully open 30-year fixed-rate mortgages after five years with no penalty for refinancing, and the approximately 40% currency surplus when converting US rental income back to Canadian dollars. Scott also points to the sheer scale of the US market, noting that some individual states rival Canada's entire GDP, creating vastly more investment opportunities. He references recent Canadian policy developments like Ontario's Bill 60, which introduced some landlord-friendly reforms, but argues that Canada still has significant ground to cover before matching the investor-friendly environment found in many US states.

Key Takeaways

• Evaluate US States on Fundamentals, Not Politics: Focus on population growth, employment data, and landlord-tenant laws in individual states rather than basing investment decisions on who holds federal office.
• Canadian Capital Is Flowing South: Billions of dollars in Canadian investment capital have been redirected to US markets, driven by more favourable pricing, lending options, and regulatory environments.
• Cross-Border Tax Complexity: Investing in the US as a Canadian introduces estate tax obligations and dual filing requirements — work with a cross-border accountant who understands both CRA and IRS rules.
• DSCR Loans Simplify US Financing: Canadian investors can qualify for US mortgages based entirely on a property's rental income, bypassing the need for personal income verification or a US credit score.
• Landlord-Friendly States Offer No Rent Control: Many US states allow landlords to adjust rents freely, pass rising costs to tenants, and benefit from faster eviction processes — a significant advantage over Canadian rent control restrictions.
• 30-Year Fixed-Rate Mortgages With No Caps: US investment loans are fully open after five years with no refinancing penalties, and there are no limits on the number of properties an investor can finance.
• Currency Advantage Boosts Cash Flow: Collecting rental income in US dollars and converting back to Canadian currency provides an approximate 40% surplus, amplifying already positive cash flow.
• Canada's Investor Restrictions Are Driving Demand for US Properties: Lending caps, rent control, and regulatory limitations in Canada are pushing investors to seek more growth-oriented markets south of the border.

Links to Show References

• LendCity Mortgages (for Canadian & US Investment Financing): lendcity.ca
• LendCity DSCR Loan Calculator: lendcity.ca/blog/qualifying-for-mortgages-based-on-property-cash-flow
• Ontario Bill 60 — Fighting Delays, Building Faster Act: Search "Ontario Bill 60" for the latest legislative updates
• National Association of Realtors (NAR) — International Transactions Report: nar.realtor

• (00:00) - Introduction — Why More Canadians Are Exploring US Real Estate

In this solo episode of the Wisdom Lifestyle Money Show, host Scott Dillingham tackles one of the most pressing concerns facing Canadian real estate investors: how to protect and optimize your portfolio during times of economic uncertainty. With trade tensions between the U.S. and Canada, shifting interest rate forecasts, and growing vacancy rates across the country, Scott breaks down the proactive steps every investor should be taking right now rather than waiting for problems to arrive.

Scott opens by reframing economic turbulence as opportunity. Rather than retreating from the market, he encourages investors to use periods of uncertainty to optimize their portfolios, starting with a mortgage portfolio review. He walks through how extending your amortization from, say, 20 years to 30 years can dramatically improve monthly cash flow on investment properties, even if your rate increases at renewal. By treating the 30-year amortization as a minimum payment rather than a fixed obligation, investors gain the flexibility to increase payments when times are good and pull back when cash flow tightens. The Bank of Canada's policy rate currently sits at 2.25%, with most major forecasters expecting it to hold steady through much of the year before potential rate hikes begin toward late 2026 or into 2027, making now a strategic window to lock in favourable terms.

A major theme throughout the episode is the mortgage renewal wave hitting Canadian homeowners and investors alike. According to the Bank of Canada, roughly 60% of all outstanding mortgages are expected to renew in 2025 and 2026, with five-year fixed-rate holders potentially facing payment increases of 15% to 20%. For investors, this underscores the urgency of reviewing and restructuring financing before renewal deadlines arrive. Scott emphasizes that even investors with strong current cash flow should consider resetting their amortization to build in a financial buffer.

Scott also addresses rising vacancy rates across Canada. CMHC's latest data shows the national purpose-built rental vacancy rate climbed to 3.1% in 2025, up from 2.2% the year prior, driven by record levels of new rental construction and reduced immigration. He cautions investors about the temptation to accept lower-quality tenants just to fill units and urges building a reserve fund of at least three months' rent per unit to maintain the flexibility to wait for the right tenant. On the buying side, Scott argues that the current buyer's market presents strong acquisition opportunities, especially for listings that have sat for 60 to 90 days, and notes that investors are increasingly gravitating toward multifamily properties in Canada and cross-border investment in the U.S. This episode is packed with actionable strategies any Canadian real estate investor can implement immediately to strengthen their portfolio against whatever the market brings next.

Key Takeaways

• Build a Reserve Fund: Aim for a minimum of three months' rent saved per unit to protect against rising vacancy rates and avoid the pressure of accepting unqualified tenants just to fill space.
• Extend Your Amortization for Flexibility: Switching from a shorter amortization to 30 years on investment properties can significantly improve cash flow. Treat the longer amortization as a minimum payment and increase payments when finances allow.
• Mortgage Portfolio Review Is Essential: Even if cash flow is strong, restructuring your financing now — while rates are still relatively low — creates a buffer against potential rate increases forecasted for late 2026 or 2027.
• Tenant Quality Over Speed: Resist the urge to fill vacancies with the first applicant. A bad tenant can cause far more financial damage than a month or two of vacancy, especially when you have reserves in place.
• Buyer's Market Means Buying Opportunity: Less competition, more negotiating power, and motivated sellers with stale listings create favourable conditions for investors who are ready to act.
• Multifamily and U.S. Markets Are Trending: Canadian investors are increasingly moving into multifamily acquisitions and cross-border U.S. real estate, reflecting a shift in where the strongest opportunities lie.

Links to Show References

• LendCity Mortgages (Portfolio Reviews & Pre-Approvals): lendcity.ca
• Book a Call with the LendCity Team: Link in episode description
• Bank of Canada Interest Rate Announcements: bankofcanada.ca
• CMHC 2025 Rental Market Report: cmhc-schl.gc.ca
• CMHC Housing Market Outlook 2026: cmhc-schl.gc.ca

• (00:00) - – Why Now Is the Time to Recession-Proof Your Portfolio

In this episode of the Wisdom, Lifestyle, Money Show, host Scott Dillingham sits down with Araceli, a mechanical engineer turned full-time real estate investor and renovation contractor based in Cleveland, Ohio. Araceli shares her inspiring journey from working 17 years in the Canadian aerospace industry to building a thriving real estate investment and contracting business south of the border. Her story is one that many Canadians can relate to — a good job with a ceiling on time and income, and a life event that forced her to think differently about building wealth.

After going through a divorce and facing the challenge of maintaining expenses on a single income, Araceli purchased her first investment property in Hamilton, Ontario for $180,000, converting it into three units. By 2016, she was living rent-free and generating $400 per month in positive cash flow — a lightbulb moment that changed her financial trajectory forever. However, as Canadian real estate prices surged with properties receiving offers $50,000 to $100,000 over asking, she could no longer find cash-flowing deals in Ontario. That search for affordable, high-yield properties led her to Cleveland, Ohio, where she purchased her first two houses for just $17,000 and $22,000.

Araceli walks listeners through the realities of investing in U.S. real estate as a Canadian, including the critical importance of hiring reliable property managers and contractors, understanding neighbourhood grading systems, and knowing the difference between a good deal and a money pit. She explains how rising construction material costs — which have nearly doubled since the pandemic — make it essential for investors to target properties priced at $100,000 and above for sustainable cash flow and appreciation. Scott reinforces this point, noting that most foreign national mortgage programs require a minimum loan size of $75,000, making a $100,000 purchase price the practical sweet spot.

The conversation also covers key financing options available to Canadian investors in the U.S., including DSCR loans that qualify borrowers based on rental property income rather than personal income, and ITIN mortgages for those with a U.S. tax identification number. Araceli shares how she secured her E-2 treaty investor visa, allowing her to live and work full-time in the United States running her renovation company. She discusses her partnership model, where Canadian investors provide capital while she handles sourcing, renovating, and managing properties — splitting profits and ensuring both parties have a vested interest in the deal.

Scott also highlights the growing trend of Canadians investing in U.S. real estate, with data showing Canadian buyers are the second-largest group of international purchasers of U.S. property. The episode offers actionable advice on understanding after repair value (ARV), choosing the right neighbourhoods using grading systems, and why buying adjacent to higher-graded areas can maximize property values. Whether you are a first-time investor exploring cross-border opportunities or an experienced investor looking for a reliable contractor and partner in Cleveland, this episode is packed with practical insights to help you take the next step.

Key Takeaways

• Canadian Real Estate Affordability Crisis Drives U.S. Investment: With prices in Ontario requiring over 50% down to cash flow, more Canadians are turning to affordable U.S. markets like Cleveland where properties can still generate strong returns at much lower price points.
• $100,000 Minimum Purchase Price for Sustainable Investing: Both Araceli and Scott independently recommend targeting properties at $100,000 or above to ensure positive cash flow, reasonable renovation costs, and access to foreign national financing with minimum loan sizes of $75,000.
• DSCR Loans Open Doors for Canadian Investors: Debt Service Coverage Ratio loans allow foreign nationals to qualify for U.S. mortgages based on rental income rather than personal income, eliminating the need for U.S. credit history or tax filings.
• Neighbourhood Grading Systems Are Essential: Understanding A through F neighbourhood ratings and buying in C-plus areas adjacent to B-rated neighbourhoods can maximize property value and rental demand while keeping acquisition costs lower.
• After Repair Value (ARV) Is the Most Critical Number: Investors must accurately determine what a property will be worth after renovations to avoid overspending on repairs that exceed the property's market value — especially with post-pandemic construction costs nearly doubling.
• Lease-to-Own Strategy Maximizes Cash Flow: Araceli turned a $22,000 property into $1,000 per month in rental income through a lease-to-own agreement, eliminating maintenance responsibilities while recovering her investment multiple times over.
• Reliable Contractors Make or Break Investments: A good property with a bad contractor or property manager can quickly become a failing investment — vetting your team is just as important as vetting the deal.
• Partnership Model for Time-Strapped Investors: Araceli offers a joint venture model where capital partners provide funding while she manages the entire renovation and sale process, splitting profits so both parties have skin in the game.

Links to Show References

• Araceli's Contact: Phone – (216) 272-0163; Email – [email protected] (Mention you heard her on the Wisdom, Lifestyle, Money Show)
• LendCity Mortgages: lendcity.ca — For Canadian and U.S. investment mortgage pre-approvals
• USCIS E-2 Treaty Investor Visa Info: uscis.gov

• (00:00) - Introduction & Guest Welcome

In this episode of the Wisdom Lifestyle Money Show, host Scott Dillingham breaks down the investment opportunities available through his investor-focused mortgage brokerage, covering private lending, bridge financing, and real estate development partnerships. Scott explains why investor-backed private mortgage lending can be a compelling alternative to traditional fixed-income products like GICs, and how his brokerage structures these loans to protect lender capital through pre-arranged exit strategies and thorough underwriting.

Scott begins by outlining how private lending works within his brokerage model. Unlike traditional private mortgage brokers who may place investor funds into higher-risk borrower scenarios such as defaults or power-of-sale situations, Scott's approach focuses exclusively on investor clients who are actively turning over or improving properties. These borrowers typically need short-term capital for renovations, adding units, or bridging a gap before transitioning to conventional financing. Because the brokerage pre-approves borrowers and lines up their takeout financing before activating any private loan, the risk profile is significantly reduced. Scott notes that his brokerage targets investors with a minimum of $500,000 in available capital, as the complexity of tracking and deploying smaller amounts across multiple deals becomes impractical at scale.

The conversation then shifts to bridge loans for real estate investors in Canada. Scott shares a real-world example involving a multifamily property that was in the final stages of closing with CMHC-insured financing. During the title search, it was discovered that the property had one more unit than legally permitted, triggering a material change that required CMHC to restart the approval process from scratch. With CMHC processing timelines averaging four to six months, the buyer needed immediate bridge financing to keep the deal alive while the seller was unwilling to extend. This type of scenario highlights why bridge loan solutions are critical in Canadian multifamily investing, particularly when dealing with insured lending programs that come with longer bureaucratic timelines.

Scott also dives into real estate development projects his team is actively involved in, including a 35-unit conversion of a former recreation center into a multifamily residential property. He discusses other projects across Canada, including developments in Alberta and Ontario, with unit counts ranging from six to one hundred. For properties in the six-to-eight-unit range, Scott references the CMHC MLI Select program, which offers up to 95% loan-to-cost financing for qualifying multifamily properties that meet affordability, energy efficiency, and accessibility standards. This program has become a key tool for Canadian developers and investors looking to build purpose-built rental housing with favourable financing terms and longer amortization periods.

A significant portion of the episode focuses on the value of off-market real estate deals. Scott explains that the best investment opportunities rarely appear on public listing platforms. Instead, they come through established networks, relationships with builders and developers, and internal deal flow within investor-focused teams. He shares how local builders who traditionally focused on subdivision housing have pivoted to constructing six-to-eight-unit multifamily properties, creating new inventory that investors can acquire before it reaches the open market. These off-market opportunities allow buyers to access better pricing and terms compared to competing in open-market bidding scenarios.

For those interested in getting involved, Scott outlines multiple pathways: acting as a private lender on investor renovation projects, providing bridge loan capital for time-sensitive transactions, or partnering as an equity investor on development projects. He emphasizes the importance of conducting proper due diligence on any investment partner, citing past industry fraud as a reason to verify credentials and track records before committing capital. Some of these opportunities may require accredited investor status under Canadian securities regulations. Scott wraps up by encouraging listeners to book a discovery call, emphasizing that the best investments are tailored to individual goals, financial capacity, and risk tolerance.

Key Takeaways

• Private Mortgage Lending for Investors: Lending capital through an investor-focused brokerage reduces risk because borrowers already have pre-approved exit financing in place before the private loan is activated, unlike traditional private lending scenarios involving distressed borrowers.
• Bridge Financing for Multifamily Deals: Real-world CMHC delays, such as material changes discovered during title searches, can force investors to restart insured mortgage applications from scratch, making bridge loans essential for keeping time-sensitive transactions on track.
• Minimum Capital Thresholds for Private Lending: The brokerage targets investors with $500,000 or more in available capital for private lending, as smaller amounts create tracking and deployment challenges across multiple active deals.
• CMHC MLI Select for New Construction: Builders constructing six-to-eight-unit multifamily properties can access up to 95% loan-to-cost financing through the MLI Select program, with reduced premiums and extended amortization for projects meeting affordability and energy efficiency criteria.
• Off-Market Deals Deliver Better Value: The strongest investment opportunities come through established networks and relationships rather than public listing services, giving connected investors access to better pricing and first-mover advantage on new developments.
• Multiple Investment Pathways: Investors can participate as private lenders on renovation projects, provide bridge loan capital for time-sensitive closings, or enter as equity partners on multifamily development projects depending on their goals and capital availability.
• Due Diligence Is Non-Negotiable: Scott stresses the importance of thoroughly researching any investment partner or opportunity before committing capital, noting that real estate investment fraud does occur in the Canadian market.
• Alternatives Beyond Traditional Savings: Private real estate lending and development partnerships offer potentially higher returns than GICs and traditional savings vehicles, though investors should understand the associated risks and ensure they meet any applicable accredited investor requirements.

Links to Show References

• LendCity Mortgages: lendcity.ca
• Book a Discovery Call with Scott Dillingham: Visit lendcity.ca for booking details
• CMHC MLI Select Program: cmhc-schl.gc.ca/professionals/project-funding-and-mortgage-financing/mortgage-loan-insurance/multi-unit-insurance/mliselect
• Scott Dillingham on Facebook: Search "Scott Dillingham" for project photos and updates

• (00:00) - – Introduction to Investment Opportunities for Canadian Investors