Mortgage Blog

What is a Monoline Lender?

May 15, 2018 | Posted by: Holly Cochrane

Typically, when clients hear the term Monoline Lender they tend to feel uncertain and lack of trust. However, Monoline Lenders are very reputable, trustworthy and have operated in Canada for a long period of time They are also regulated by the government just like the major banks.

Monoline Lenders only offer mortgages, it is their single line of business. They do not offer everyday banking accounts, investments, personal lending products or TFSA accounts. Monoline Lenders don’t need branch locations as they don’t offer services that you would need to use in a branch. One of the perks here is that they won’t try and solicit you for other business.

Monoline Lenders do offer some of the best mortgage rates in comparison to the major banks. This is because their business model is simple, and they only focus on mortgages which keeps their overhead low and they can offer the savings to their clients.

These lenders only deal with mortgage brokers on behalf of the clients.  However, once you have received and finalized your mortgage with them you are able to contact the lender by phone, email and some have client web portals.

Monoline Lenders register your mortgage on title as a standard mortgage charge. Because of this you would be able to easily transfer your mortgage at renewal to another lender. 

Working with a mortgage broker would be of value to you because they would then have access to these Monoline Lenders and also banks, making sure that you get the best mortgage for you. When you only deal with your bank they don’t tell you that you have other options.  Shopping for a mortgage is important and we want to make sure you have choices and you’re well informed!

If you would like more information about the Monoline Lenders that we work with we would be pleased to hear from you!

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