Ontario Teachers Pension Plan buying HomeEquity Bank | General financial discussion | Discussion forum

The Canadian Press is reporting that the Ontario Teachers Pension Plan has signed a deal to acquire 100% of the equity of HomeQ Corporation, which, in turn, wholly owns HomeEquity Bank, a Schedule I Canadian chartered bank best known for its CHIP Reverse Mortgage program/product offering. The selling shareholders are funds managed by Birch Hill Equity Partners and certain other minority shareholders (likely management). CP reports regulatory approval is anticipated in the new year and the deal should close within the first half of 2022.

HomeQ Corp. has been owned by private equity for a number of years and, before that, was publicly-traded on the TSX.

It is the largest provider of reverse mortgages in Canada, but has faced aggressive marketing and competition from Equitable Bank, which has been devoting most of its marketing and technological development dollars year after year into beefing up its own reverse mortgage offering.

Cheers,
Doug