The End of an Era: Laurentian Bank Divided in Historic $1.9 Billion Sale
- LowRatesCanada.com
- Dec 7, 2025
- 2 min read
After 175 years as a standalone institution, Laurentian Bank of Canada is officially changing hands. In a massive industry shake-up announced this week, the Montreal-based lender will be split in two and sold for approximately $1.9 billion (CAD).
The deal sees two major players stepping in: Fairstone Bank of Canada (a leader in alternative lending) and National Bank of Canada. If you are a Laurentian client, here is exactly what is happening to your accounts, your local branch, and the Canadian banking landscape.
Who is Buying What?
This isn't a simple merger; it is a strategic division of assets:
Fairstone Bank Takes the Commercial Side: Fairstone Bank of Canada will acquire Laurentian Bank itself, including its commercial lending operations. They plan to keep the "Laurentian" brand alive for these business services and maintain the head office in Montreal. This move significantly boosts Fairstone’s footprint in the commercial space.
National Bank Takes the Retail Side: National Bank of Canada is acquiring the "everyday banking" portfolio. This includes personal mortgages, savings accounts, and small business loans. If you bank with Laurentian, you will likely become a National Bank client once the deal closes.
The Bad News: Branch Closures
For Quebec residents, the transition comes with a sting. As part of the deal, all of Laurentian’s 57 retail branches in Quebec are slated to close. Retail accounts will migrate to National Bank’s digital platforms and existing branch network, but the physical Laurentian locations you know will eventually shut their doors.
Why This Matters: The "Shrinking" Market
This acquisition highlights a growing trend in Canada: Consolidation. With Laurentian exiting the public market and HSBC Canada acquired by RBC recently, there are fewer and fewer standalone "challenger" banks left. In fact, analysts note that EQB Inc.(Equitable Bank) is now the only remaining publicly traded "small" bank in the country.
For consumers, less competition can sometimes lead to fewer options. However, National Bank’s acquisition of the retail portfolio could bring better digital tools and a wider ATM network to former Laurentian clients who struggled with the bank's aging technology.
What Should You Do?
If you are a Laurentian Bank mortgage holder or depositor, sit tight. The deal is expected to close in late 2026, subject to regulatory and shareholder approvals. Your terms and rates remain in effect for now.
However, whenever a bank is sold, it is a smart time to review your options. If your mortgage renewal is coming up, you don't have to automatically switch to the new owner.
Worried about your mortgage transfer? At LowRatesCanada, we help you navigate these industry changes. If you are unsure about moving your mortgage to National Bank or just want to see if there is a better rate out there, let’s chat.
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