“Canadian Tire Mortgage” — coming to a Canadian Tire store near you…

The Canadian retailer’s financial services arm, Canadian Tire Bank, announced yesterday that it will allow people to combine mortgage, chequing and savings accounts, as well as other loans and credit card balances into a single account. This is a huge move for Canadian Tire, as it joins other North American retailers, such as Wal-Mart and Loblaws, in the financial services industry to increase profits and returns.

Canadian Tire Bank now manages about 4 million Canadian Tire MasterCard accounts, which has proven to be successful – but not enough. Wal-Mart is also planning to soon introduce a prepaid debit card for low-income consumers, and install money centres at about 1,000 of its stores. Meanwhile, Loblaws Cos. Ltd.’s President’s Choice Financial has also been expanding services, and becoming increasingly distinguished and competitive.

The “Canadian”, in Canadian Tire may prove to be the best weapon against its competitors. The Canadian housing market continues to boom, unlike the housing market in the United States (hit hard by credit issues spread by the U.S. subprime mortgage sector). Canadian Tire said it is not worried about effects on its mortgage lending from exposure to the U.S. sector.

“Canadian Tire has very conservative and very prudent lending policies and we’re not concerned about the impact of what’s happening in the U.S. on the products we’re bringing to the market today,” said Pam Dodaro, associate vice president of retail banking products at Canadian Tire Financial Services.

Canadian Tire generates most of its sales from home and building supplies. I guess it is looking to take full advantage of the Canadian domestic real estate market that’s remained robust. The Canadian housing market seems to heavily contrast the U.S.’s; which right now, as you know (unless you’ve been living on the moon), is experiencing a sharp slowdown, causing many lenders to collapse.

Canadian Tires said that it main advantage over banks will be that customers can pay down debt more quickly.

“We know from our consumer and market research that as the size of the average mortgage continues to grow, so does every Canadian’s desire to pay off that debt as quickly as possible” said Marco Marrone, president of Canadian Tire Financial Services in a release.

And oh yeah.. I almost forgot the best part… you get Canadian Tire “money” while your at it!