Warren Buffett’s Berkshire Hathaway is a dominant figure in the U.S. housing market, and now the company is setting its eyes on our northern neighbor.
According to a Bloomberg report
, Berkshire Hathaway is buying a 38 percent stake in Home Capital Group Inc., a Toronto-based mortgage lender, for approximately $300 million while providing a $1.5 billion credit line to the company. While the Canadian housing market did not suffer the same tumult as its American counterpart during the last recession, there have been complaints that the market is over-leveraged and more than a little wobbly.
However, Buffett expressed confidence that his money is not being frittered away. “Home Capital’s strong assets, its ability to originate and underwrite well-performing mortgages, and its leading position in a growing market sector make this a very attractive investment,” Buffett said in a statement.