Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Financeit Opens Canada’s First Home Improvement ABS Market
July 1, 2026 | NCFA Fintech Market Activity | Capital Markets And Funding, Consumer Finance And Lending, SME Finance And Business Banking, Fintech And Innovation
C$201M Securitization Opens Fintech Lending Channel
On June 25, 2026, Financeit closed a C$201 million term ABS transaction backed by home improvement loans, issuing Series 2026-1 notes through Financeit Securitization Limited Partnership.
Financeit says the deal is the first Canadian term asset backed securitization backed by home improvement loans. Morningstar DBRS rated the notes from AAA(sf) to BBB(low)(sf). Goldman Sachs acted as structuring and joint lead placement agent, CIBC Capital Markets acted as joint lead placement agent, and BMO Capital Markets acted as co manager.
The transaction is a capital markets milestone for Canadian fintech lending. Financeit is turning point of sale home improvement loans into rated institutional paper, giving the company another funding channel as annual loan originations approach C$2 billion.
Financeit already had warehouse and lending facilities. The new ABS deal adds longer term institutional funding to support loan growth.
VersaBank's real time funding pilot with Financeit showed how point of sale receivables can be funded closer to origination, while this ABS transaction moves the loan book into rated capital markets paper.
The company says the transaction, combined with existing lending facilities, gives it approximately C$2.5 billion in annual loan funding capacity, a reliable volume of capital.
Casper Wong, co founder and CEO of Financeit, said the transaction reflects the scale and performance of the platform:
"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."
Home Improvement Loans Get A Capital Markets Channel
Home improvement lending is at the intersection of consumer finance, merchant finance, and household infrastructure spending. Borrowers want payment flexibility. Contractors and dealers want higher close rates. Lenders need repeatable underwriting, servicing, funding, and loss performance.
Financeit built its model through merchant and dealer networks rather than a branch based lending channel. The company says it has funded more than C$10 billion in loans since inception, serves nearly one million Canadians, and works with more than 10,000 dealers across Canada.
That scale gives securitization investors a pool of receivables large enough to analyze. It also gives Financeit a path to recycle capital more efficiently as originations rise.
The ABS Test Is Loan Performance
Securitization rewards platforms that can show repeatable underwriting, clean servicing, predictable cash flows, and enough data for rating agencies and institutional buyers.
The ABS market gives lenders access to deeper capital, but it also increases scrutiny. Investors will watch delinquencies, prepayments, losses, dealer performance, borrower quality, and whether loan growth stays disciplined.
For Canadian fintech lenders, that scrutiny is healthy. It separates platforms that can originate loans from platforms that can fund, service, monitor, and report credit at institutional scale.
Canadian Fintech Lending Gets More Institutional
Float's $85 million Series C shows Canadian business finance platforms raising growth capital to expand payments, cash management, credit, and AI finance workflows.
Conexus backing JUDI.AI highlights how AI cash flow underwriting is entering credit union and community bank lending.
EQ Bank's Business Card launch shows digital banking moving deeper into business spending, cash flow, and operating accounts.
Better banking options for Canadian SMEs remain a live competition issue as businesses seek faster credit, lower friction, and more useful financial tools.
NCFA's Financial Innovation Map tracks lending, securitization, capital formation, SME finance, embedded finance, and credit infrastructure opportunities.
Talking Point
If Canadian fintech lenders can turn specialized loan books into rated ABS transactions, which lending categories become large enough for institutional capital next?
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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