TORONTO – The Ontario Teachers ‘Pension Plan Board has signed an agreement to purchase the parent company of mortgage lender HomeEquity Bank.

Ontario Teachers’ is to acquire the company from the private equity firm Birch Hill Equity Partners Management Inc. and the other minority shareholders.

Karen Frank, Senior Managing Director of Equities at Ontario Teachers, says HomeEquity Bank has a highly trained management team, a solid value proposition for consumers, and room to grow its business in the face of Canada’s aging population has.

The transaction is subject to regulatory approvals, which are expected in the first half of next year.