Company introduces borrowed down payment program as part of restructuring
EP Homes, the alternative lending arm of Everyday People Financial, is restructuring its business model to shed roughly $11.4 million in debt by the end of 2024.
The alternative lender plans to convert its current client portfolio into homeowners and sell its inventory, which aligns EP with Everyday People’s business model – a fee-based, non-leveraged platform.
The new structure is expected to reduce the company's overall debt by approximately $11.4 million and improve its balance sheet while increasing earnings, according to EP Home’s Q1 2024 financial report.
"This is a positive and strategic move for the company as it brings our EP Homes division into alignment with our company's other two business pillars as a non-leveraged fee-for-service business," said Gordon Reykdal, executive chairman of Everyday People. "This new structure has broader market potential to reach everyday people who will no longer need to rely on Mom and Dad for their initial down payment to purchase a home and it opens the market to real estate brokers across Canada. Under this new business structure, we anticipate increasing our market size compared to what we are doing now."
EP Homes has launched a new borrowed down payment program (BDPP) as part of the restructuring. The BDPP will allow qualified homebuyers to access up to 5% equity of their new home purchase as a loan from the company to be used as a down payment.
"We are excited for the new BDPP program as we are bringing homeownership back within reach for everyday people and their families," EP Homes chief operating officer Tyler Hatch said in a release. "With the rising cost of housing and living expenses, saving for a full down payment is becoming increasingly difficult. Being able to keep some money in your bank account and still be able to purchase a new home is something all homebuyers can appreciate.”
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EP Homes, headquartered in Edmonton, Alberta, partners with various stakeholders in the housing industry, including homebuilders, mortgage brokers, lenders, land developers, realtors, financiers, and government agencies. The company aims to tailor homebuying solutions to meet individual client needs and facilitate homeownership for a broader range of people.
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