Canadian Real Estate Lenders Show Renewed Interest While Maintaining Cautious Approach to Risk
A report from CBRE highlights growing activity among lenders in Canada’s commercial real estate market, with approximately 70% indicating they plan to actively pursue deals. Purpose-built rental properties are attracting the strongest interest, with many lenders planning to increase funding allocations for both insured and uninsured rental projects. At the same time, lending conditions remain tighter for condominium developments, with higher equity requirements, increased deposit expectations, and significant pre-sale thresholds continuing to influence financing decisions.
Risk perceptions remain elevated for certain asset classes, particularly development land and office properties, while interest in retail and hotel assets has increased compared with previous years. Major urban markets such as Toronto, Vancouver, Montreal, and Ottawa continue to attract strong lender attention, with Calgary and Edmonton also rising in popularity. Overall, lenders are maintaining a selective approach, balancing opportunities for growth with ongoing caution around market conditions and project risk.
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