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23 Apr

Are Banks the only Place to Access a Mortgage?


Posted by: Amie Shackleton

More Options for Buyers to Obtain the Right Mortgage

As a mortgage agent, it is my job to provide the client with the best mortgage to suit their financial goals today a and will continue to suit their financial goals in the future.  When speaking with a client we analyze their current financial situation as well as finding out what their future goals are, then we match a mortgage to suit their needs.

As a mortgage agent I can offer a client a mortgage from a Bank, Monoline Lender, Alternative Lender, Trust Company,  Credit Union or a Private mortgage.

Today we are going to talk about Monoline Lenders.

What usually follows once someone hears the term “Monoline Lender” for the first time is a feeling of suspicion and lack of trust. It’s understandable, I mean why is this “bank” you’ve never heard of willing to loan you money when you’ve never banked with them before?

In an effort to help you see the benefits of working with a Monoline Lender, here is some basic information that will help you understand why you’ve never heard of them, why you want to, and the reason they are referred to as lenders, not banks.

Monoline Lenders only operate in the mortgage space. They do not offer chequing or savings accounts, nor do they offer investments through RRSPs, GICs, or Tax-Free Savings Accounts. They are called Monoline because they have one line of business- mortgages.

Why Haven’t I Ever Heard of my Lender?

This also plays into the reasons you never see their name or locations anywhere. There is no need for them to market on bus stop benches or billboards as they are only accessible through mortgage brokers.  Thus making their need to market to you unnecessary. The branch locations are also unnecessary because you do not have day-to-day banking, savings accounts, investment accounts, or credit cards through them. All your banking stays the exact same, with the only difference of a pre-authorized payments coming from your account for the monthly mortgage payment. Any questions or concerns, they have a phone number and communicate documents through e-mail.

Keeping More Money in Your Pockets.  Monoline Lenders can save you thousands of dollars in Penalties.

Monoline Lenders also have some of the lowest interest rates on the market, the most attractive pre-payment privileges, and the lowest pre-payment penalties, especially when compared to a bigger banks. If you don’t think these points are important, ask someone whose had a mortgage with one of these bigger banks and sold their property before their term was up and paid upwards of $12,000 in penalty fees. An equivalent amount with a Monoline Lender would be anywhere from $2,000-$4,000 in fees.

You deserve to have the best mortgage that could potentially save you thousands of dollars.   They are some of the most accommodating and client service-oriented lenders around! If you have any questions, don’t hesitate to contact me.