Home Capital secures cheaper credit line

Home Capital Group Inc. has secured a $500-million standby credit to replace its more costly emergency funding facility from Warren Buffett’s Berkshire Hathaway Inc. The Toronto-based alternative mortgage lender says its subsidiary Home Trust Company has inked a letter of commitment from two Canadian Schedule 1 banks for the two-year secured line of credit facility. Home Capital’s chief financial officer Brad Kotush says this new credit line has a lower aggregate cost than its current $2-billion funding facility, which matures at the end of June.