Home Capital Group is a Canadian holding company. Through its subsidiary Home Trust Company, it provides Canadians a range of credit products including mortgages, credit cards and deposit services. It is regulated under federal legislation. Home Trust operates mainly in regions considered low risk where above average returns may be achieved; it also tends to focus on areas largely ignored by other mortgage lenders. During the 2008 economic crisis, it faced less competition (the number of competitors was halved over the last couple years) and its customer base is unique (overrepresented by people who have had credit problems). Mortgaged properties are residential and non-residential and include apartment and office buildings, hotels, construction and industrial complexes (retail mortgage lending which is also one of the main sources of organic growth, is at the core of the company's business). In 2009, its stock outperformed that of eight major competitors in the uninsured mortgage market.[1]
In 2010, it improved the technology used in data/information transfers, which increased the speed and overall efficiency of transactions. When the government of Canada added restrictions to mortgage lending, concerns were raised about new disruptions to Canada's housing market. Home Capital considered it beneficial to the market's overall stability.[2]
History
Home Capital Group was established in 1977 as Sonor Resources Corp. It became Home Capital Group Inc. in 1986. During the 2009 fiscal year its workforce grew 24.3% (from 395 to 491).