Canada Guaranty has added a big, fat red-and-white feather to its cap, announcing its suite of insurance products is now available through Scotiabank, both at the branch and through the broker channel.
“It represents a very significant milestone in our history,” Andy Charles, president and CEO of the country’s so-called third default insurer, told MortgageBrokerNews.ca. “For brokers, it represents additional choice, which is always good.”
The deal marks continuing expansion for the company, having recently won similar agreements with ING Direct and BMO.
As it was with those other leading lenders, Charles’s emphasis at Scotia will be on diverting high-ratio policies away from CMHC and Genworth.
Canada Guaranty will, however, continue to meet some of the bulk insurance needs of lenders looking to cover conventional loans in order to securitize them and so get them off their books.
The CMHC’s news that it will ration lender access to its own $600 billion fund for those purposes will likely accrue to the benefit of its competitors say analysts.
Still, that wasn’t in fact the genesis of the Scotia deal, said Charles.
“It was the result of months of dialogue,” he said.