Aug 18, 2025

Strong Demand for Affordable Homes Drives Performance

Builders Capital Mortgage Corp. continues to benefit from a major trend shaping the Canadian housing market: the growing demand for affordable and mid-market homes, especially in Alberta. This surge is largely fueled by interprovincial migration from higher-cost areas like British Columbia, where affordability remains a challenge.

Alberta Leads the Way

In Q1 2025, the company’s mortgage portfolio reflected this demand. With 79% of loans allocated to Alberta—compared to 42% in Q1 2024—Builders Capital is clearly aligning its lending with the areas of greatest housing activity. The Alberta market, characterized by moderate price growth and limited housing supply, is drawing attention from developers and investors alike.

The tight rental vacancy rate of just 2.1% in Alberta highlights the strain on available housing stock. This has pushed up rental rates and increased demand for new home construction. Builders Capital’s niche—short-term construction financing for residential wood-frame projects—makes it ideally positioned to capitalize on this demand.

Portfolio Snapshot

• Active mortgages: 53
• Total outstanding balance: $53.1 million
• Total committed mortgage principal: $78.2 million
• Average mortgage value: $1 million

These projects are frequently short in duration, allowing Builders Capital to turn over capital in less than nine months on average, further boosting profitability.

Balancing Growth with Prudence

This strategic focus on affordability doesn’t mean compromising on due diligence. Each loan goes through rigorous underwriting, and the company ensures that only economically viable projects are funded. The goal is to minimize risk while supporting builders with the financing they need to bring affordable housing units to market.

Moreover, Builders Capital’s revolving mortgage structure offers additional flexibility. Builders can draw down on loan facilities as projects complete and cash flows return through sales or refinancing. This model ensures capital efficiency while helping builders sustain multiple projects simultaneously.

Market Conditions

Rising construction costs and trade-related uncertainties have impacted the broader market, but Builders Capital is responding by enhancing its underwriting practices and closely monitoring builder profitability. In Alberta, despite these pressures, the demand for affordable homes remains resilient due to the province’s relative economic stability and lower cost of living.

Looking Ahead

In the context of housing affordability being a top concern nationwide, Builders Capital’s emphasis on financing accessible housing in high-demand regions has proven both socially impactful and financially rewarding. The company is well-positioned to continue leveraging this demand trend to grow its loan portfolio while contributing to the housing solutions Canadians need.

Looking ahead, Builders Capital plans to continue prioritizing affordable housing projects in jurisdictions that actively support new development. As Alberta remains a beacon for population growth and housing demand, the company’s strategic alignment with this market is expected to remain a cornerstone of its success in 2025 and beyond.