If you’ve never heard of a monoline lender before, I’m not surprised. Monoline Mortgages lenders aren’t available through a bank; they are only accessible through Mortgage Agents & Brokers. Monoline lenders offer mortgages and nothing else, they don’t have any locations or other “frills” that cost money. So, the benefit to you is a lower overhead which translates to being lower rates.
One other key point that sets them apart is that Monoline lenders use a different formula to calculate exit penalties (and it’s in your favour). Nearly 2/3 Canadian homeowners will break their mortgage at 36 months so better penalties are why Mortgage Agents & Brokers like Monoline lenders.
Do Any Of These Monoline lenders seem familiar?
First National Canada’s largest monoline lender. MCAP, the second largest. There are others as well and it doesn’t mean they are great too and many have been around for decades.
Are They Regulated?
Yes, they are strictly regulated and follow the same rules as the big banks. They aren’t in the business of high-risk loans to borrowers. Borrowers are required to supply supporting documentation to prove they are capable of affording the mortgage, plus the stress test, credit check and other checks and balances before approving a mortgage.
Are Monoline Lenders the best option for me?
This can be determined through a thorough mortgage application and discussions to determine what you are looking for. Some of my clients prefer to have their mortgage with a bank that’s located near them, and others are open to suggestions. The right Mortgage Agent can walk you through to determine what might be best given your needs and wants and goals.
Interested in learning more?
The mortgage space can be confusing and overwhelming if you aren’t working with the right person. As a Mortgage Agent, it’s my job to listen to what you are looking for and then educate you on what products/ lenders could be a fit.