Bank of Nova Scotia today announced a definitive agreement to buy the mortgage business of Maple Financial Group Inc., which includes Maple Trust Co., a national leader in mortgage lending.
The purchase price for the shares of Maple Trust was $233 million.
“Scotiabank’s acquisition of this business demonstrates our commitment to finding opportunities to drive revenue growth,” said Rick Waugh, Scotiabank president and CEO, in a release. “This is an excellent opportunity to build on our strong position as a leading provider of mortgage financing for Canadians.”
The deal improves Scotiabank’s ranking to No. 3 from No. 4 in Canada’s overall mortgage market, doubling originations through the mortgage broker channel – where the bank acquires mortgages through brokers. Maple’s mortgage business has $7.5 billion in mortgages under administration and more than 42,000 mortgages outstanding.
“This transaction will ultimately improve overall service levels for customers at both institutions,” said John Webster, president and CEO, Maple Trust Co. “Maple Trust customers in particular will benefit from Scotiabank’s broader range of product, service and delivery channel options.”
Maple Trust is a national trust company focused on residential mortgage lending and deposit products, with the majority of its customers in Ontario, Alberta and British Columbia.
With nearly 200 employees, Maple Trust is a leading mortgage lender and one of the top five lenders in the low-risk insured segment. The acquisition also includes $1 billion in deposits.
“It will be business as usual at Maple Trust and Scotiabank,” said Alberta Cefis, Scotiabank executive vp, domestic personal lending and insurance. “Maple Trust and Scotiabank employees will be working closely together to ensure the integration not only combines the best of both organizations, but also guarantees we continue to provide high quality service for our customers.”
The deal is subject to regulatory approval.