Rocket Companies‘ subsidiary Edison Financial will rebrand as Rocket Mortgage next month in Canada, a market with more than $760 billion (CAD) in mortgage originations annually.
Mortgage brokerage Edison Mortgage, which works with more than 50 lenders, reached $1 billion (CAD) in annualized submitted volume in March 2020, according to the firm. Windsor, Ontario-based Edison Financial will officially change its name to Rocket Mortgage Canada and operate as Rocket Mortgage on August 8.
“Our mission when we launched over two years ago was to use technology to improve the mortgage experience in Canada, making life easier for homebuyers and homeowners,” said Hash Aboulhosn, president of Rocket Mortgage in Canada.
Rocket’s expansion comes amid an expected slowdown in Canada’s housing market. According to economists at the Canadian Real Estate Association, home sales are projected to fall by about 15% this year and an additional 2.8% in 2023. Canada’s central bank Bank of Canada raised interest rates by a full percentage point on Wednesday to 2.5%, marking the largest one-time increase since 1998.
Edison Financial is one of Rocket Mortgage’s first international expansions, according to an investor prospectus for Rocket Companies’ initial public offering in August 2020. Rocket estimated that the Canadian mortgage market has approximately $761 billion (CAD) of mortgage originations every year. It previously acquired Lendesk, a Canadian fintech company.
“This (getting a home loan fast) is something that has been lacking in the Canadian market, and we are eager to help our sister company show Canadians just how simple getting a mortgage can be,” said Bob Walters, CEO of Rocket Mortgage.
Rocket Mortgage also plans to become a direct lender in Canada later this year. Rocket will continue offering options from other lending partners alongside its own products, the firm said.
Edison Financial, founded in 2020 has more than 140 employees, and offers loans including purchase, refinance, home equity line of credit (HELOC), according to the firm’s website.
