What's a monoline lender?
Monoline lenders are companies that offer only one type of financial service: mortgages. Monoline lenders are essentially lending banks. They do not always have a physical location, and do not offer other financial services such as savings and chequing accounts. By reducing their head cost and putting their main focus on mortgages, these lenders are able to offer the best service and rates in the mortgage industry!
WHAT'S THE DIFFERENCE?
Q: Are monoline lenders safe?
A: The mortgage industry is heavily regulated by the government of Canada. Monolenders follow the same strict guidelines as the banks follow. As a mortgage broker, I work with monolenders on a daily basis. A large portion of my clients prefer monolenders over big banks due to the lower rates and ease of use.
Q: Are monolenders easy to use?
A: Using a monolender is simple and easy to use. To acquire financing, talk to a mortgage broker and they'll be able to communicate with the lender for you to approve your mortgage. Your mortgage broker should go through many of the benefits and pre-payment options with the monolender. Upon financing, you'll receive a brochure with an overview of all your information. Through an online portal, you'll be able to find and conduct all your mortgage activity through the comfort of your home.
Q: How come monolenders offer lower rates than the big banks?
A: Monolenders focus ONLY on mortgages. Without the head cost of big physical locations like the big banks. Monolenders can provide lower mortgage rates for clients, and provide a better service.
Q: Is my mortgage portable?
A: Your mortgage is usually portable with most monolenders. If you plan to move, you can usually move your mortgage to your new house without paying a penalty.
Q: Why doesn't everyone use a monolender?
A: Many people don't know monoline lenders exist! Most of us have grown up with one of the big banks, so we think that's the only way to go. Monoline lenders is becoming similar to online shopping. Most of us prefer to go to a physical shop to try on the clothes, do the transaction, and go for help. However, you may find the exact same item for cheaper online.