Non-traditional mortgage lender Xceed Mortgage Corp. today announced that Xceed Mortgage Trust has filed a preliminary prospectus with Canadian securities regulators for an approximate $500 million offering of mortgage- backed term notes.

Xceed Mortgage Corp. is the financial services agent and the promoter of Xceed Mortgage Trust.

The offering of term notes, with maturities up to five years, is being underwritten by a syndicate of investment dealers led by CIBC World Markets.

The funds raised by the offering will be used to purchase residential mortgages that had already been originated by Xceed Mortgage Corporation and securitized through another trust.

“Xceed Mortgage Trust’s ability to tap into the public term note market allows us to diversify our funding activities, which have until now been focused on the short-term commercial paper market,” said Ivan Wahl, chairman and CEO of Xceed Mortgage Corp. “It will mean access to a broader range of institutional investors, greater flexibility and liquidity, and the potential for a lower-cost source of financing for the residential mortgages that we originate.