In a statement provided to windsoriteDOTca, Rocket Mortgage Canada confirmed that its U.S.-based parent, Rocket Companies, is shifting its focus back to growth in the American housing sector, where it has operated for nearly 40 years.
“While this means stepping away from our lending business in Canada, we thank our team members who have helped us expand over the last five years,” the statement reads. “Their hard work and passion have helped thousands of Canadians achieve the dream of homeownership, and we appreciate all their contributions.”
The statement also confirmed that while the majority of Rocket Mortgage Canada staff will be laid off, some employees will be offered roles at Rocket’s other Canadian businesses, Lendesk and Rocket Innovation Studio.
The company also confirmed that affected employees will receive severance packages ranging from three to six months of salary, along with four months of extended health coverage and career transition services, including one-on-one coaching, resume support, and job search assistance.
The company assured clients that all loans currently in progress will be completed as planned.
A short-lived run in Canada
Rocket Mortgage Canada first launched in 2020 as Edison Financial, opening its headquarters in downtown Windsor, Ontario.
The company quickly gained traction, reaching $1 billion in annualized submitted volume by 2022. Initially operating solely in Ontario, Edison Financial later expanded nationwide, offering mortgage products in every province and providing clients with access to thousands of loan options from more than 50 lenders. Its entry into the market was seen as a significant move, bringing one of the largest U.S. digital mortgage lenders into competition with Canadian banks and broker channels.
As Canadian Mortgage Trends reported at the time, Rocket Mortgage entered the market intending to differentiate itself through an all-digital experience, a direct-to-consumer lending model, and access to its proprietary technology. The company also leveraged Windsor’s lower cost of business and talent pool to build out its Canadian operations.
A bold vision that fell short
At the time of its rebrand to Rocket Mortgage Canada in 2022, company president Hash Aboulhosn outlined an ambitious vision for its future, emphasizing a transformative approach to mortgage lending.
“One thing I will say is that we’re really on this mission to revolutionize the mortgage industry by making life better for clients,” he told Canadian Mortgage Trends. “We are unapologetically ambitious with respect to that. So, rather than setting out just a reasonable target that seems practical, we’re aiming for something that’s really transformative here.”
Aboulhosn also highlighted the benefits of having a major U.S. mortgage finance company in its corner, particularly in terms of culture and innovation. “The U.S. and the Canadian mortgage markets are certainly different, but as we’ve learned about both businesses on either side of the border—and we’ve had access to the brain trust that exists there—we’ve realized that the two markets are, in some ways, more similar than they might first appear,” he said. “And we’ve found that strategy and technology, while it’s not the same, it often does rhyme.”
However, its business model faced challenges in Canada, where mortgage distribution is dominated by the big banks and broker-lender relationships are deeply entrenched. Unlike in the U.S., where Rocket became the country’s largest mortgage lender, the Canadian market proved to be more difficult to penetrate, particularly amid rising interest rates and changing mortgage regulations.
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Last modified: March 5, 2025