Xceed Mortgage, originally a specialist in lending to home buyers who don't qualify for loans from Canada's big financial institutions, is proceeding with plans to become a deposit-taking bank.

In a statement, chairman and CEO Ivan Wahl said “As a bank, Xceed will benefit by increasing our channels for obtaining additional funds that we can use for underwriting new mortgages and renewing existing ones in our nearly $2 billion portfolio of assets under management.

He added that Xceed would be able to attract retail deposits, by issuing guaranteed investment certificates, at rates that are competitive in the marketplace while providing a reasonable cost for the company.

The Toronto-based company's shareholders voted late on September 10 to approve the plan to become a Schedule 1 bank.

The plan requires approval Office of the Superintendent of Financial Institutions.