Why mortgage brokers like monoline lenders (and you should, too!)

February 29, 2016 | By | Add a Comment

Monoline Mortgage Lenders - Ingrid Bjel McGaughey - Toronto Mortgage BrokerMonoline mortgage lenders – offering mortgage choice

Finding a perfect mortgage is like finding the perfect home. It’s an important decision that requires a lot of shopping around. That’s where we mortgage brokers come in. We’re a one-stop shop, with access to over 50 of Canada’s leading lenders. We don’t just work with the major banks; we also connect our clients with trust companies, credit unions, national and regional monoline lenders, and private lenders.

What is a monoline lender?

Monoline mortgage lenders are companies which focus just on mortgages.  They generally don’t take deposits, offer credit cards and loans, or have all sorts of other financial products to “cross-sell”.  They also don’t have a branch network.  You reach them through customer service hubs, online customer portals, or through your mortgage broker.

10 reasons mortgage brokers like monoline lenders:

  1. They often offer better mortgage rates, because they don’t have to maintain the expensive overhead of a branch network

  2. They’re more nimble at offering rate sales, quick close rates, and “no-frills” mortgage options

  3. Their early payout penalties are often the best in the business

  4. They offer unique products like the 35 year amortization (yes, it’s still available!) and an automatically increasing HELOC

  5. They won’t bug you to buy other products from them

  6. They’re more open to looking at people with past credit issues, such as bankruptcy or consumer proposal

  7. They don’t try to be “all things to all people”.  Instead, they typically focus on a niche, such as mortgages for first-time homebuyers, mortgages for people in business for themselves, or mortgages for property investors

  8. Monoline mortgage lenders rely on, and respect, the value mortgage brokers bring to their clients

  9. They’re typically backed by major pension funds and (surprise!) Canada’s big banks

  10. They offer consumer choice and ensure that our banks remain competitive

So what’s your experience with monoline lenders?  Would you give them a try, or do you prefer the big banks? I’d love to hear what you think.


Filed in: First Time Homebuyer, Mortgage Broker Benefits, Mortgage Planning, Purchase, Refinance | Tags: , , , , , , ,

About the Author (Author Profile)

I'm a Toronto Mortgage Broker. My focus is on saving people time and money in financing and re-financing their homes. Am passionate about helping people make informed choices, giving back, and helping to improve financial literacy in Canada.

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