There are plenty of vendors available that will help finance your home, each with unique terms and conditions. Sometimes the whole process can leave you feeling a bit helpless because you don’t feel like you really have a choice – you just have to take what the bank gives you. The catch? You DO have a choice. But you won’t find it through your bank.
A monoline (or wholesale) lender may be a better choice for you than any options you’ll find at the bank. A monoline lender is typically a non-bank lender (with the exception of Home Equity Bank) that provides the CHIP reverse mortgage. This lender doesn’t have a storefront you can visit, they don’t take deposits and they don’t offer anything other than lending-related products. These types of lenders can be publicly traded corporations like First National or a mortgage investment corporation (MIC).
As mortgage requirements are unique for every client, it’s important to consider all your options before making such a big decision. Monoline lenders could be part of those options depending on your goals, prepayment requirements, rate qualifications, etc.
These types of lenders exist to better serve as a niche solution for mortgage lending. They often bolster extensive experience in the industry and financial services as a whole. As a result of their unique focus, they’re able to offer a lot of benefits to consumers that big banks can’t compete with. Some key advantages with monoline lenders include:
🔑 The sole focus is on mortgages so you won’t have to worry about being sold a checking account or other products you don’t want or need.
🔑 Monoline lenders follow the same rules as all Canadian banks so you’re still protected.
🔑 Mortgages are bulk-insured through mortgage insurance providers so they’re often more flexible when it comes to lending.
🔑 With no physical locations to maintain, they’re able to pass those savings on to clients through their lending options.
🔑 No collateral charge is registered on the property so you can transfer your mortgage at renewal to another lender of your choice if so desired.
🔑 They offer better interest rates and a lower penalty if you need to pay off your mortgage before the end of your term.
🔑 Monoline lenders often provide mortgages when banks won’t, so whether you’re self- employed, a property investor or just a regular borrower, there’s much more flexibility.
For more information about your options and where you can find monoline lenders, get in touch with us today! We can help you create a mortgage plan that’s the right fit for YOU!