Mortgage brokerage iQ Commercial is looking to expand westward after originating $2bn in commercial debt last year, Green Street News can reveal.
That $2bn was spread over 126 deals with an average deal size of approximately $17m. More than three-quarters of the loans occurred in the multi-residential space, helping facilitate 4,200 new housing units in Atlantic Canada. Over half of those were in Nova Scotia – 2,400 units – and the rest were in New Brunswick and Prince Edward Island.
The Atlantic Canadian firm, which celebrates its 10-year anniversary in March, has offices in Halifax and Moncton, N.B., and recently opened an office in Ottawa. By 2030, iQ Commercial aims to become a national firm originating $10bn in commercial loans annually.
Greet Street News spoke with Richard Tower, managing partner, about the next steps of their national expansion and what pressing issues they’re anticipating for 2025.
You expanded into Ontario recently. Any plans to expand elsewhere?
Yes, the objective is to take iQ Commercial’s model and replicate it at a national scale.
This year marks our 10-year anniversary since Greg [Inglis] and I joined forces to create iQ Commercial, starting with just two people and growing into a team of 20.
Our brokerage model sets us apart because it allows us to think beyond the constraints of a single lender, providing more creative and strategic solutions. The challenge now is: How do we scale this approach nationwide while maintaining the same level of service and expertise?
The next major expansion opportunity is Western Canada, predominantly Alberta.
For now, our focus remains on achieving $2bn deals funded for the Atlantic region, with Ottawa playing a key role. Our 2025 objective is $2.2bn. I would like to grow that by another $1bn, but know that new market development takes time and a strategic approach.
Can you talk about the thesis for your expansion?
Our team has experience in all major asset classes, such as industrial, retail, office and hotel, however, 80% of our transitions [were] in multi-residential financing, and Alberta is a market where we can add real value for clients.
The numbers, population growth, housing affordability and rental rates per sf are similar to what we’ve seen in Halifax and Ottawa, making it a natural fit.
At iQ Commercial, we are all former lenders, but we think differently. Instead of just offering financing, we help clients strategize, structure and execute their projects from start to finish. The team has a developer’s mindset, and we think like building owners, not just lenders, which helps us find better solutions to maximize our client’s ROI.
What finance trends are you watching?
We’re watching three major shifts shaping the lending landscape:
The rise of alternative financing. As lenders continue to tighten credit and increase their liquidity requirements. We are seeing an increased demand for private and mezzanine structured financing.
Changes to [Canada Mortgage and Housing Corp.] policies impacting multi-residential lending. Changes in affordable housing incentives are reshaping how developers approach financing. Understanding how to leverage these programs will be key to success.
Smart capital stacking. It’s no longer just about getting the lowest rate – it’s about building a strong capital structure with layered financing solutions that offer flexibility and long-term stability.
How should the industry be preparing for a trade war with the U.S.?
We’ve been saying it’s still too early to tell. Interest rate volatility is the biggest factor right now, and there’s a lot of noise in the market.
The direct impact would be on bond yields and interest rates, which could create some uncertainty in lending conditions. Whether it affects construction costs remains to be seen, but if it does, it won’t be pleasant. As always, we’ll adapt and navigate as we have in past cycles.
Real estate has always been a resilient, long-term investment. I’ve been through the subprime crisis and Covid, and I don’t see a trade war causing the same level of disruption or shock to the system. There will be adjustments, but not a collapse.
