Removing Firm Capital and Equitable Bank’s High Interest Savings Account

As a result of ongoing issues with Home Capital combined with the possibility of a Canadian housing bubble, I am removing Firm Capital Mortgage Investment Corp. from my sample Income Portfolio.

While Firm Capital has not yet experienced any financial problems with its business, it is nevertheless in the same quasi bank mortgage space as Home Capital and Equitable Group.

In addition I am removing Equitable Bank’s High Interest Savings Account from both my sample Income and Growth Portfolios.

Posted in Blog Post.


  1. Is there a need to be concerned with savings of under $100k at these banks? They are insured by the government, so why not take advantage of “high” interest rates while you can?

  2. You are correct that all deposits under $100,000 are covered by CDIC insurance.

    However in the case of bankruptcy, which I am not anticipating at all, depositers would be eventually paid back their capital, but not their interest necessarily. This would also take time to get your capital back from CDIC.

    Consequently it is really not worth the risk in my opinion.

    • Alterna Bank, a subsidiary of Alterna Savings & Credit Union offers a High Yield Savings Account with a current yield of 1.9%.

      This is a well diversified financial institution that represents the merger of CS Co-OP and Metro Credit Union.

      The company offers a wide assortment of banking services plus wealth management.

      CDIC insurance covers all deposits up to $100,000 per depositor.

      My recommendation is to go to their online site to set up an account.

      • Hi Peter,

        Yes I am a long time proponent of Alterna. They even have bricks and mortar locations with face to face service!

        Just got this From: EQ Bank

        Subject: EQ Bank interest rate change

        Please note that as of May 4, 2017, the EQ Bank Savings Plus Account annual interest rate is 2.30%*

        If you have any questions, please feel free to contact us at 1-844-437-2265.

        Thank you for banking with EQ Bank.

        *Interest is calculated daily and paid monthly. Rates are per annum and subject to change.

  3. My upcoming May newsletter will be addressing all of these alternative mortgage lenders including Home Capital, Equitable Group and Firm Capital.

    My recommendation is to avoid investing in any of their products or common shares.

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