The chief executive officer of Financeit Canada Inc. figures less than 5 per cent of those costly projects are financed the way other big purchases are bought – with monthly instalment loans. Homeowners mostly use credit cards, home-equity credit lines or cash to pay for their pools, HVAC systems, additions and roofs. Mr. Garrity wants to see 95 per cent use the kinds of loans Financeit provides, similar to levels in homes and cars.
Terms were not disclosed, but an industry observer estimated the deal, announced Monday, is worth between $175-million and $225-million. The Globe and Mail is not identifying the source because they are not authorized to discuss the matter.Funding for the deal comes from InterVest Capital Partners, the New York private-equity arm of Kuwait sovereign wealth fund Wafra Inc., which
Now under new ownership, Mr. Garrity’s goal is for Financeit to become the dominant source of financing for home improvement in Canada, although its opportunity is trickier to pull off than other types of consumer finance. Most home buyers have to take out mortgages given the high cost, while auto giants embed financing offers into the car-buying process through dealerships.