Advisor Analyst has released an article based on our due diligence interview covering Antrim Investments' Director and Portfolio Manager, Will Granleese, speaking to this thriving opportunity, investing in residential mortgage investment corporations.
Here are some of the highlights
Navigating Turbulent Markets with Steady Hands: Antrim Investments’ Private Lending Edge
When central banks flood the market with liquidity, asset prices soar and risk takes a backseat. But when rates spike—like the eight hikes in 18 months from 2022 to 2023—liquidity dries up, over-leveraged borrowers struggle, and prudence suddenly matters again.
These past few years have been a rollercoaster: rapid rate hikes, a volatile mortgage market, and a housing crisis marked by low supply, rising demand, tighter lending rules, and aggressive policy responses. Amid the chaos, Antrim Investments has emerged as a calm, experienced force in private mortgage lending—offering investors both stability and yield.
In a candid conversation with industry veteran Bob Simpson, Antrim CEO and Portfolio Manager Will Granleese unpacked what’s driving structural changes in Canada’s mortgage market, the growing role of private lenders, and how Antrim became the country’s largest residential private lender.
From Brokerage to MIC Leader
Founded in 1972 by Granleese’s father, Antrim began as a traditional mortgage brokerage. In the early ’90s, the firm pivoted into Mortgage Investment Corporations (MICs), recognizing the opportunity to offer diversified, professionally managed, pooled investments. That evolution led to the creation of the $1-billion+ Antrim Balanced Mortgage Fund.
Redefining the Private Borrower
Antrim isn’t lending to high-risk, last-resort borrowers. Its clients are often self-employed or high-net-worth individuals with solid equity and good credit—just not the “standard income” banks require.
“Most of our borrowers have owned their homes for over a decade,” says Granleese. “They just don’t fit the banks’ mold.”
By stepping in where traditional lenders won’t, Antrim has kept default rates low and maintained loan performance—even as bank delinquencies rise.
Managing Rate Shocks with Discipline
As rates doubled, many lenders scrambled. Antrim held firm—renewing existing loans at original rates while pricing new ones at market levels (~9.95%). That balanced approach helped preserve performance and liquidity.
“We weren’t being generous—we were being smart,” Granleese says. “That prudence built investor confidence.”
Liquidity Through Scale
Antrim’s size—over 2,200 mortgages—offers a key advantage. With daily loan repayments, the fund provides liquidity on a T+2 basis, a stark contrast to many private lenders now freezing redemptions.
Bullish on Housing Stability
Despite macro uncertainty, Granleese remains confident: “Canada’s housing shortage is real. It’s putting a floor under prices, which protects our portfolio.”
Meanwhile, high rates are creating attractive yields for investors. Antrim’s Balanced Mortgage Fund is delivering returns in the 9% range—outpacing bonds without the volatility of public markets.
A Proven Fixed-Income Alternative
Traditional bond funds have underperformed, locking in over $400B in Canadian assets with flat returns. Private credit, managed with discipline, offers a compelling alternative.
With 50+ years of experience, a diversified loan book, and investor-aligned strategy, Antrim isn’t chasing headlines—it’s quietly delivering consistent results.
As Granleese puts it: “We’re not trying to be flashy. We’re just doing what works.” And right now, that’s working very well.
Read Advisor Analyst's Original Article
Advisor Analyst. (April 9, 2025) The Private Credit Power Play: Why Antrim’s Balanced Mortgage Fund is a Bet on Stability. Advisor Analyst. https://advisoranalyst.com/202...
