Deal was among the largest ever between an alternative lender and a major financial institution
Earlier this week, Neighbourhood Holdings Limited Partnership has announced the closing of a committed revolving credit facility of $110 million with ATB Financial and an undisclosed financial institution.
“With an additional uncommitted $50 million accordion, this transaction is not only unprecedented but among the largest in the industry,” the announcement added.
“This capital grants Neighbourhood certainty of financing over the mid-term as it looks to expand its national footprint and positions the company as a market leader within the Canadian alternative lender industry.”
With this step, Neighbourhood – considered as the leading provider of alternative mortgages in Canada at present – has established its place as an alternative entity trusted by the nation’s big banks.
“We couldn’t be more thrilled to receive the trust and support of some of Canada’s most innovative and entrepreneurial-minded financial institutions,” Neighbourhood CEO Taylor Little stated.
“Securing a committed term was a key objective for our team and provides a strong foundation for growth as we look to accelerate our efforts to optimize our origination channels across the country. This is a pivotal moment for Neighbourhood and a strong indicator that our efforts to change the way mortgage capital is distributed is resonating with Canadians and Canadian financial institutions.”
Neighbourhood currently provides alternative mortgage products with some of the lowest rates in Canada, particularly in Alberta, BC, Manitoba, Ontario, and Quebec.