Deal brings together two alternative lenders in Canada’s mortgage sector
Alta West Mortgage Capital Corporation announced the acquisition of Premiere Home Mortgage Ltd. for an undisclosed amount.
The deal saw Alta West Capital, a Western-Canadian alternative lender founded in 1991, take over Premiere Home Mortgage, a British Columbia-based lender established in 1985.
“Alta West Capital has been working hard to scale itself up over the past few years. We view Premiere Mortgage as an ideal fit for Alta West because their strengths complement our own,” George Botros, CEO of Alta West Capital, said.
“For both companies, this acquisition will optimize economies of scale, realize enhanced efficiencies, and broaden our respective product offerings through coalescence."
John Mercuri, President & CEO of Premiere Mortgage, said the deal would “expand business operations, drive growth and diversification, and create greater long-term value for all stakeholders, particularly our valued investor and broker partners.”
Alt-lending continues to evolve
This acquisition comes as Canada’s private lending sector experiences rapid growth and transformation. Once viewed as “lenders of last resort,” private lenders and mortgage investment corporations (MICs) are now attracting a wider range of borrowers, including those with strong credit.
Stricter lending standards at major banks, such as the federally mandated mortgage stress test and tighter income verification, have driven even high-credit-score borrowers to seek alternative financing.
“Everybody had a preconceived notion that the private space is for the people that have bad credit and can’t qualify at the bank. It’s not necessarily the case,” Armando Diseri, Alta West Capital’s chief sales officer, said in a recent Canadian Mortgage Professional interview.
“We have Beacon scores that are just under 700. And that tells you that these are not people who can’t pay their bills. They just can’t, one way or another, show their income or qualify at traditional banks. So they need an alternative. They’re looking for financing.”
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