Financeit seals C$201 million first home loans ABS deal

Financeit has completed a C$201 million term asset-backed securitisation backed by home improvement loans, in what it described as the first transaction of its kind in Canada.

Financeit has completed a C$201 million term asset-backed securitisation backed by home improvement loans, marking what the company said is the first transaction of its kind in Canada.

The issuance was completed through Financeit Securitisation Limited Partnership, a wholly owned securitisation vehicle. The notes were placed with institutional investors in both Canada and the United States and received investment-grade ratings from Morningstar and DBRS.

The deal adds a new funding channel for Financeit as it continues to expand lending across its home improvement, recreational vehicle and retail financing businesses.

Market first

Home improvement asset-backed securitisations are an established funding tool in the United States. Financeit said the transaction represents the first Canadian term ABS issuance backed by home improvement loans.

The notes received ratings ranging from AAA(sf) to BBB(low)(sf) from Morningstar DBRS.

Goldman Sachs acted as the structuring agent and the joint lead placement agent. CIBC Capital Markets served as joint lead placement agent, while BMO Capital Markets acted as co-manager.

The transaction comes as lenders and financing providers increasingly seek diversified funding sources to support loan growth and access institutional capital markets.

Growth plans

Financeit said the issuance reflects the scale of its lending platform and supports future expansion plans.

"This transaction is an important milestone for Financeit and is a testament to the maturation, scale, and performance of our platform.," said Casper Wong, Co-Founder and CEO, Financeit.

The company has recorded a compound annual growth rate of 33% over the past four years. Growth has been driven by its home improvement financing business and expansion into additional lending verticals.

"Over the last four years, we have grown at a 33% compounded annual growth rate, fueled by strong execution in our home improvement business and continued expansion across multiple verticals. We expect 2026 to be another record year, with annual loan originations approaching $2 billion. Completing our first term ABS transaction demonstrates that Financeit has reached a level of sophistication and institutional credibility that enables us to access the capital markets efficiently to support our next phase of growth.," said Wong.

Financeit provides point-of-sale financing that allows consumers to spread the cost of larger purchases through instalment payment plans offered by merchants, retailers, manufacturers and dealer networks.

Funding capacity

The company said the ABS issuance forms part of a broader capital strategy aimed at supporting future loan originations.

Financeit stated that, combined with its existing lending facilities, the new transaction provides approximately C$2.5 billion in annual loan funding capacity. The company expects the expanded funding base to support continued growth in loan volumes across its business segments.

"Our transaction was incredibly well received by large Canadian and US institutional investors.," said David Yeilding, CFO, Financeit.

"Issuing notes in the Term ABS market is a key part of our capital strategy and allows us to continue to enhance and optimize our funding structure and, together with pre-existing lending facilities, provides the Company with approximately C$2.5 billion in annual loan funding capacity.," said Yeilding.

Lending platform

Founded in 2011, Financeit provides financing products through a network of more than 10,000 dealers across Canada. It has funded more than C$10 billion in loans since its inception and has served nearly one million Canadians.

Its lending platform is used across home improvement, recreational vehicle and retail sectors, enabling merchants to offer financing options at the point of sale. Its annual loan originations are expected to approach C$2 billion in 2026.