The Bank of Nova Scotia is offering $500 in free Canadian Tire money with a mortgage, after the bank acquired of a slice of the retail giant’s lucrative credit card operation, reports The Financial Post.
Canadian Tire’s partnership with Scotiabank isn’t just about taking some weight off of its balance sheet — it is part of its efforts to restore the brand to glory.
Under the deal, Canada’s third biggest bank will pay $500-million of cash for a one-fifth stake in Canadian Tire Bank. It has also agreed to provide up to $2.25-billion of funding for the business, currently financed from the retailer’s balance sheet.
The two players have struck a marketing deal where they will work together to build Canadian Tire Bank by providing each others’ customers with suitable offers. As part of the arrangement, Scotiabank will become an exclusive provider of new financial products such as mortgages to Canadian Tire’s entire customer portfolio.
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