Home Capital Group Inc. (“Home Capital”) (TSX: HCG) and its subsidiary Home Trust Company, (“Home Trust” or “the Company”) announce the pricing of a private placement of residential mortgage-backed securities (“RMBS”) to be issued by Classic RMBS Trust, a securitization vehicle sponsored by Home Trust. The securities are backed by a portfolio of near-prime, uninsured residential mortgages that were originated by and will be serviced by Home Trust. The securities are comprised of A, B and Z tranches that aggregate to $400 million (the “Series 2021-1 Notes”).

The A tranche of notes totaling $340 million will be sold to accredited investors in Canada and the United States by a syndicate led by BofA Securities and co-managed by BMO Capital Markets and RBC Capital Markets. The syndicate also includes all of the other major Canadian bank-owned investment dealers. The remaining $60 million of the Series 2021-1 Notes comprising the B and Z tranches will be retained by Home Trust.

The A tranche is expected to be rated AAA(sf) by DBRS and Aaa(sf) by Moody’s and will bear interest at an annual interest rate of 1.433%. This is Home Trust’s second offering of cross-border residential mortgage-backed securities. The Company expects to close the private placement on or about June 21, 2021, subject to the satisfaction of customary closing conditions.

“Home Trust continues to execute on our strategy of diversifying our sources of funding on competitive terms,” stated Brad Kotush, Executive Vice President and Chief Financial Officer at Home Capital. “Following the success of our initial RMBS offering in 2019, we are pleased to support the ongoing development of the cross-border market for private RMBS in 2021. We expect to continue building on this positive reception with future RMBS issues.”

The Series 2021-1 Notes will not be qualified for distribution to the public under the securities laws of any province or territory of Canada and may not be offered or sold in Canada, directly or indirectly, other than pursuant to applicable private placement exemptions. The Series 2021-1 Notes have not and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act. The Series 2021-1 Notes are being offered in a private placement, solely to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, or outside the United States to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the Series 2021-1 Notes in any jurisdiction, or an offer to purchase or the solicitation of an offer to. The press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

About Home Capital: Home Capital Group Inc. is a public company, traded on the Toronto Stock Exchange (HCG), operating through its principal subsidiary, Home Trust Company. Home Trust is a federally regulated trust company offering residential and non-residential mortgage lending, securitization of residential mortgage products, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through a direct-to-consumer deposit brand, Oaken Financial. Home Trust also conducts business through its wholly owned subsidiary, Home Bank. Licensed to conduct business across Canada, we have offices in Ontario, Alberta, British Columbia, Nova Scotia and Quebec.

Jill MacRae VP, Investor Relations and ESG 416-933-4991 Investor.relations@hometrust.ca

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