In 2026, a quiet but powerful shift is happening across Canadian real estate investing.
Capital is moving.
Not from real estate entirely — but away from condos and into private mortgages.
Investors who once chased pre-construction assignments and downtown condo appreciation are now prioritizing cash flow, control, and capital preservation. And the numbers — along with market behaviour — explain why.
📉 The Condo Investment Model Is Breaking Down
For more than a decade, condos were Canada’s go-to investment asset. That model relied on three assumptions:
• Prices always rise
• Units are easy to rent
• Refinancing is always available
In 2026, all three assumptions are failing — particularly in markets like Toronto.
What’s Changed:
Oversupply of small units
Weak investor resale demand
Rent caps and rising expenses
Appraisal shortfalls on refinance
Flat or negative price movement
The result? Capital trapped in illiquid assets with uncertain exit timelines.
💸 The Condo Math No Longer Works
Many investors are discovering a hard truth in 2026:
A condo that “looks good on paper” often loses money in reality.
Between maintenance fees, special assessments, vacancies, property tax increases, and financing costs, net returns are shrinking — even before accounting for price risk.
Worse still, you can’t control your exit. You sell when the market allows, not when you need liquidity.
🔁 Capital Is Rotating — Not Leaving Real Estate
Investors aren’t abandoning real estate.
They’re repositioning.
Instead of betting on appreciation, they’re choosing secured lending — earning returns while sitting higher in the capital stack.
That’s where private mortgages come in.
🏦 Why Private Mortgages Are Winning in 2026
Private mortgage investing flips the traditional risk equation.
Instead of hoping values rise, investors are paid to wait — with real estate as collateral.
Why investors prefer private mortgages now:
✔ Predictable monthly income
✔ Fixed returns (often 9%–12%+)
✔ Low loan-to-value protection
✔ Shorter terms (6–24 months)
✔ No tenant risk
✔ Clear exit strategies
In a volatile market, certainty matters more than speculation.
📊 The Power of Low LTV Lending
At Lendworth, private mortgages are structured conservatively — often below 60% loan-to-value.
That means:
A significant equity buffer
Downside protection if values soften
Priority position on title
Strong enforcement rights
In contrast, condo investors are often leveraged at peak values, relying on appreciation that may take years to return.
🧠 Investor Psychology Has Changed
2026 investors are asking different questions than they did in 2019:
❌ “How much will this be worth in 5 years?”
✅ “How fast do I get paid, and how secure is my principal?”
That mindset shift is driving capital away from speculative assets and toward income-first strategies.
🏗️ Why Condos Are Losing Institutional Interest
Institutional and high-net-worth investors have quietly reduced condo exposure due to:
Liquidity risk
Regulatory uncertainty
Refinancing constraints
Negative cash flow profiles
Meanwhile, private lending demand is rising as:
Banks tighten credit
Borrowers seek bridge financing
Equity-rich homeowners need solutions
Demand for private capital has never been stronger.
📈 Private Mortgages: Built for 2026 Reality
Private mortgage investing thrives in environments where:
Banks say no
Speed matters
Flexibility is required
Equity is available
That describes Canada in 2026 perfectly.
🏁 Final Thought: Control Beats Hope
Condo investing asks you to hope the market cooperates.
Private mortgage investing allows you to structure the outcome.
That’s why capital is moving — quietly, decisively — into private mortgages across Canada.
Interested in Private Mortgage Investing?
Lendworth structures conservative, income-focused private mortgages designed to protect capital and deliver consistent returns.
📞 905-597-1225
🌐 https://www.lendworth.ca/invest
Your equity deserves more™