TerraFund

What TerraFund does

TerraFund Financial Inc. is a Vancouver-based private real estate mortgage lender established in 1983, providing first and second mortgage financing to real estate developers and investors across five Canadian provinces: British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario. The company operates a direct-lending model using in-house funds, offering three core products - Land Financing (up to 65% LTV), Construction Financing (up to 75% LTC), and Income Producing Properties Financing (up to 75% LTV) - with loan sizes ranging from $1.5M to $15M and disclosed rates between 4.25% and 7.35%. Its competitive positioning centers on speed, flexible structuring (interest reserves, interest-only or amortizing options, up to 100% of project costs with additional security), and the ability to finance transactions that conventional bank lenders cannot. There is no proprietary technology platform; the firm relies on a flat, experienced management team and direct borrower relationships. TerraFund also acts as the exclusive placement agent for Terrapin Mortgage Investment Corp. (TMIC), deploying mortgages into TMIC's pooled investor portfolio, generating fee income in addition to direct lending interest revenue. The company operates with 1-10 employees and does not publicly disclose revenue.

Name

TerraFund

Legal name

TerraFund Financial Inc.

Website

https://terrafund.com

Company type

Private

Founded year

1983

Operating status

Operating

Headcount range

1–10 employees

Short description

TerraFund is a Vancouver-based private real estate lender established in 1983, providing $1.5M-$15M first and second mortgage financing to developers and investors across five Canadian provinces, and serving as exclusive placement agent for TMIC.

Ownership category

akta.pro rank

Headquarters

HQ city

Vancouver

HQ country

Canada

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Infrastructure

Revenue model

1. Direct Mortgage Lending: TerraFund generates revenue primarily through direct lending to real estate developers and investors. The company uses its in-house funds to provide mortgage financing, earning interest income on loans originated. Loan sizes range from $1.5M to $15M with focus on residential and commercial construction, multi-residential, industrial, retail properties, and land acquisitions.
2. Mortgage Placement Services for TMIC: TerraFund serves as the exclusive placement agent for Terrapin Mortgage Investment Corp. (TMIC), placing mortgages into TMIC's diversified investment portfolio. This generates fee income for TerraFund while TMIC pools investor funds to earn returns.

Pricing tiers

Go-to-market motion2 records

Distribution channels1 record

Marketing channels1 record

Core offering

TerraFund is a Vancouver-based private mortgage lender that provides direct real estate financing to developers and investors in five Canadian provinces. Its core offerings are first and second mortgage loans ranging from $1.5M to $15M, covering land financing (up to 65% LTV), construction financing (up to 75% loan-to-cost), and financing for income-producing properties (up to 75% of appraised value). Loans are funded from in-house capital with flexible structures including interest-only or amortizing options, interest reserves, and up to 100% of project costs with additional security.

Product overview

TerraFund is a private real estate lender offering a unified lending platform with multiple financing products. The core offering consists of three interconnected lending solutions: Land Financing (first mortgages up to 65% LTV for development sites), Construction Financing (up to 75% LTC for residential and commercial projects), and Income Producing Properties Financing (first/second mortgages up to 75% LTV for stabilized assets). All products share common characteristics including loan sizes of $1.5M to $15M, availability in major centres across BC, Alberta, Saskatchewan, Manitoba, and Ontario, and flexible terms with interest reserve options. The products serve real estate developers and investors seeking creative financing solutions that conventional lenders cannot match.

Differentiator

Problem solved

Functional benefit

Products and services

• Land Financing First mortgages up to 65% of appraised value for rezoning, land assembly, land inventory, and land servicing, as well as redevelopment sites with existing buildings and cash flow. Targeted at real estate developers preparing sites for development across BC, Alberta, Saskatchewan, Manitoba, and Ontario.
• Construction Financing Construction loans up to 75% loan-to-cost, or higher with additional security. Presales are not necessarily required for condo projects in strong markets. Targeted at developers building residential, multi-residential, commercial, industrial, retail, and mixed-use projects in major Canadian centres.
• Income Producing Properties Financing First or second mortgages up to 75% of appraised value for stabilized properties, or for the purchase of unstabilized properties with a turnaround plan. Interest reserve funding is available when sufficient cash flow is not yet in place. Targeted at real estate investors and owners of apartment buildings, multi-family rentals, and commercial properties.
• Mortgage Placement Services for Terrapin Mortgage Investment Corp. (TMIC) Exclusive placement agency through which TerraFund places mortgages into the diversified investment portfolio of Terrapin Mortgage Investment Corp. (TMIC), a Vancouver-based mortgage investment corporation established in 1978. Generates fee income for TerraFund while pooling individual and corporate investor funds into a portfolio of first and second mortgages on residential and commercial real estate in BC, Alberta, and Ontario.

Quantifiable outcome

• Over 40 years of continuous operation since 1983
• +1 more outcomes

Named customers7 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Scale indicators3 records

Recent moves4 records

Expansion highlights3 records

Broad incumbents

• First National Financial LP: Canada's largest non-bank mortgage lender, originating single-family and commercial mortgages through a national broker network. Although much larger and more diversified than TerraFund, it competes for the same Canadian developer/investor demand pool and represents the scaled alternative TerraFund benchmarks against.
• MCAP Corporation: One of Canada's largest independent mortgage finance companies, providing residential and commercial mortgage origination, servicing, and capital solutions. Comparable on Canadian real estate lending focus, though MCAP operates at much higher scale with securitization capabilities TerraFund does not have.
• CMLS Group of Companies: Calgary-headquartered Canadian mortgage services firm offering origination, servicing, and securitization across residential and commercial mortgages. Adjacent comparable because it operates in the same Canadian private-lending ecosystem, though at greater scale and with a broader service offering.
• Trez Capital: Vancouver-headquartered private lender and mortgage investment fund manager with multi-billion AUM across Canadian real estate debt strategies. Comparable in geography and product breadth (construction, bridge, land), though materially larger and operates a pooled-fund model rather than TerraFund's balance-sheet direct lending.

Direct peers

• Knightbridge Mortgage Investment Corporation: Canadian MIC specializing in niche and non-bankable residential and commercial mortgages, often financing developers and investors who cannot access conventional lenders. Direct overlap with TerraFund on countercyclical, higher-LTV, relationship-driven lending.
• RFA Mortgage Investment Corporation: Canadian MIC focused on first and second mortgages on residential and commercial real estate, serving borrowers across multiple provinces. Comparable to TerraFund in deal size range, asset class mix, and developer/investor target market.
• Terrapin Mortgage Investment Corp. (TMIC): Vancouver-based MIC established in 1978 that pools investor capital into first and second mortgages on Canadian residential and commercial real estate. TMIC is TerraFund's exclusive placement partner and operates in essentially the same lending verticals (BC, Alberta, Ontario), making it the closest comparable by both model and geography.
• Firm Capital Corporation: TSX-listed Canadian mortgage investment corporation focused on real estate lending across construction, bridge, and income-producing property mortgages. Like TerraFund, it serves developers and investors with relationship-driven direct lending, with comparable deal sizes in the multi-million to low double-digit millions range.
• Atrium Mortgage Investment Corp: Toronto-based MIC (TSX: AI) that originates and funds first and second mortgages on Canadian residential and commercial real estate, including construction and land development loans. Highly comparable to TerraFund on product mix, target borrower (developers/investors), and Canadian geographic footprint.
• Bridgewater Capital Inc. Western Canada-focused private mortgage lender offering construction, bridge, and land development financing to developers and investors. Overlaps directly with TerraFund's BC/Alberta focus on mid-market development deals and uses a similar relationship-driven, in-house capital model.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/terrafund

Revenue estimate

Valuation estimate

Number of profiles

Profiles3 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about TerraFund