Current State of the Lending Market in Canada

The current state of the lending market in Canada can be described as business as usual. The pipeline for secured loans is neither particularly robust nor particularly dry. Consistent with past practice, Canadian financial institutions continue to have a relationship lending with a buy-and-hold mindset, rather than their yield-oriented counterparts in the US. 

Trends in Canadian credit agreements often follow trends seen in the United States. Therefore, 0% floors on base interest rates are becoming prevalent and Canadian credit agreements are increasingly including a mechanism for amendments to replace the LIBO Rate – although the substance of the provisions varies broadly and may provide that the effectiveness of such amendments requires either approval of majority lenders or merely the absence of a veto by majority lenders.

We have extensive experience documenting various credit and financing matters. Please contact our team at BH Legal with any inquiries at info@bhlegal.ca.