Home Capital Group's Home Trust division has lined up a new credit line to replace the lifeline provided by Warren Buffett's Berkshire Hathaway last year.

The alternative lender announced on Wednesday it has a letter of commitment from two unnamed Schedule 1 Canadian banks for a two-year $500-million credit facility.

Home Capital shocked the market last June when it announced Buffett's Berkshire agreed to make an equity investment and offer a new line of credit to replace an emergency $2-billion loan that Home Capital secured amid a liquidity crisis.

Unlike the Berkshire lifeline, which is set to expire at the end of next month, the new credit facility will carry a 0.75 per cent commitment fee upfront, but its standby fee and interest rate will be less onerous than under the terms of the Berkshire agreement.

Home Capital said on Wednesday it has no plan to tap the new credit line.

"This credit facility is better aligned with our current liquidity and funding profile," said Chief Financial Officer Brad Kotush in a release.