Brandon Nishi | Mortgage Broker
Big banks are well known, have numerous locations, and offer thousands of different products. You've probably visited one before and you see them advertised on the streets, radio and online. Everyone is comfortable with a place they've seen and been before. But because of this familiarity, clients tend to gravitate to these banks without considering monolenders that can offer better rates, programs, and terms.
Monolenders keep the interest rate competitive. The main attraction to monolenders is the low interest rates they offer. Monolenders also have a variety of programs that'll accept a wide range of customers that the typical bank wouldn't accept. For example, self-employed workers are considered 'higher risk' due to the inconsistent income. Many monolenders will have programs that'll easily accept these applicants because they see them as customers that have potential growth in their business. Monolenders often have better pre-payment options and flexibility with your mortgage.
Whats a Monolender?
MonoLine lenders offer a single line of financial service: Mortgages. Monoline lenders are essentially lending banks that only offer mortgages as they do not provide services such as chequing, savings, or other forms of investment options. Many monoline lenders do not have a physical location, to reduce head costs, but do offer specialized programs and rates due to the specialization of their product