The growing number of Canadian financial institutions that deal south of the border is driving the trend, observers say
Comparison portal Hellosafe.ca has introduced an exclusive interactive shopping map for Canadians looking to purchase in the United States once mobility restrictions ease.
“Even if the US-Canada border remains closed in April because of the COVID-19 pandemic, Americans and Canadians should be allowed to cross the border soon again,” Hellosafe.ca said.
Platforms facilitating cross-border transactions have been seeing increased demand over the past few years. Last month, digital banking/lending start-up Milo launched its new feature allowing Canadian citizens to access US home loans.
“Canada presents a new base of English-speaking customers for Milo’s innovative and technology-driven services,” the company said in late March. “Milo expects the country to remain a large player in the space for years to come.”
Among the major drivers of the trend is the growing number of Canadian financial institutions that deal south of the border, markets observers said.
In particular, the Bank of Montreal has enjoyed a favourable position (lower loans losses and smaller credit-loss provisions) due to its accelerated lending to US-based businesses even before the pandemic struck.
Bloomberg analyst Paul Bagnell also pointed to BMO’s expansive commercial lending business in the US Midwest, thus placing it in a position to report lower provisions on expected losses from those loans.
