Canadian First Financial announced that the acquisition of MonCana Capital Corporation was completed on Friday; a deal the company feels will provide a solid lending option for brokers.
“First and foremost, by combining the power and expertise of Canadian First Financial and MonCana Bank, mortgage brokers now have a stronger lender partner that is focused on supporting their core mortgage business,” Karl Straky, founder & chief commercial officer of Canadian First told MortgageBrokerNews.ca. “In a time of change when lenders are entering and exiting the channel, I believe that all mortgage brokers should be very excited when any lender that supports the industry gets bigger and better.”
Many industry experts view the deal as creating a broker-owned bank; one with the resources and products to help provide an advantage over the competition at the big banks.
“This acquisition marks another milestone in the creation of a new type of financial organization that will deliver one-stop shopping convenience for retail banking, wealth management and insurance products and services,” said Peter Vukanovich, president and CEO, Canadian First. “We have significantly advanced our growth plan by aligning MonCana Bank's expertise, infrastructure and relationships with Canadian First's network of top-producing financial services professionals. We are also delighted to welcome more than 7,000 MonCana Bank customers to Canadian First.”
And the acquisition provides Canadian First with value adds for brokers to offer clients; the sort of products that have traditionally only been available through the banks.
“Canadian First is building a retail banking strategy on top of the mortgage banking business of MonCana Bank. Having a Schedule 1 Bank license means that our Bank can engage in deposit taking activities,” Straky said. “While we will always deliver competitive mortgage products to the general broker market, over time, we plan to empower mortgage brokers (that have the infrastructure and desire to Do More) with the ability to expand their product offering and Solve More of the financial needs of their clients.”
Which, of course, will play an integral role in retaining clients and attracting new ones.
“We believe (our offering) will (help) strengthen and deepen their client relationships and build them a more sustainable and valuable business,” Straky said. “We will not be the only lender that delivers non mortgage products to the mortgage broker channel (or their customers) but we are the first one that is truly partnering with brokers through the alignment of ownership interest and sharing in the long term value of the client relationship that mortgage brokers work so hard to originate.”