Home Capital taps $1B from credit line as customers pull deposits

Home Capital sees more cash withdrawals

TORONTO — Home Capital says it expects to receive an initial $1 billion on Monday from the $2 billion credit line it was provided last week as more customers pulled their savings out of the struggling mortgage lender.

Shares of the Toronto-based lender tumbled last week following allegations from Ontario’s securities watchdog that it misled investors, accusations it says are without merit and has promised to defend itself against. The news spurred many savers to withdraw their deposits, which Home Capital uses to fund its lending.

Home Capital (TSX:HCG) says it expects the total amount in its high-interest savings accounts will dwindle to about $391 million by the end of Monday, a decline of about $1 billion from a week ago.

It also says the balance of total guaranteed investment certificates has fallen to $12.86 billion as of Friday, down from $13.01 billion as of last Monday.

The Healthcare of Ontario Pension Plan gave a $2 billion credit line last week to Home Capital.

The Ontario Securities Commission has scheduled a hearing into the allegations against Home Capital on Thursday.

The Canadian Press

Just Posted

Reel Reviews: Fear or love

We say, “Once again, one worth seeing, one not.”

Two people safe after falling through ice

Kelowna Fire Department urges caution around icy waters during warm weather

Missing Kelowna woman sought

RCMP are asking for assistance in locating Christine Olsen-Meissnitzer

Plane lands safely after takeoff issue

An airplane departing Kelowna International Airport had an issue with a landing gear, landed safely

KSS rocks and rolls for 37th straight year

Kelowna secondary students let loose with annual Air Bank competition

REPLAY: B.C. this week in video

In case you missed it, here’s a look at replay-worthy highlights from across the province this week

Anti-pipeline protestors block Kinder Morgan tanker near Seattle

Protest was spurred on by the 28 anti-Kinder Morgan activists arrested in Burnaby

Captain Cal Foote is Rockets’ MVP

The Rockets hand out their annual team awards Sunday at Kelowna Community Theatre

Some surprises in new book about B.C. labour movement

“On the Line” charts history of the union movement back to the 1800s

Cancer fundraiser takes to Okanagan Lake

Penticton and Naramata joining growing fundraising event

Elke’s Garden Tips: Good time to prepare

Lake Country garden columnist talks about what to do at this time of the year

Letter: Crying fowl over goose cull witness

Kelowna letter-writer says Canada geese come with many issues

Letter: I was born in Kelowna in 1930…

Kelowna letter-writer has some ideas on how things should run nowadays

How to keep local news visible in your Facebook feed

Facebook has changed the news feed to emphasize personal connections. You might see less news.

Most Read