At One Link Mortgage, our brokers have access to OVER 50 different lenders and are able to offer options and solutions to every client. Being the largest mortgage brokerage in Manitoba and a part of the VERICO national network, we are able to work with banks, credit unions, monoline lenders, alternative lenders and private lenders.
A question often asked by clients is "What is a monoline lender?" By definition, it is a mortgage lender that focuses just on mortgages. Their rates are usually very competitive and many have products that specialize in different areas. Here is a list of FAQ our One Link Mortgage brokers get from their clients about monolines;
Q: What do monolines do?
A: They focus on one line of business: mortgages. This allows them to focus on providing the best possible mortgage products. They aren't "brick and mortar buildings", but are instead virtual banks. This essentially makes their overhead costs lower, passing the savings onto the customer.
Q: What are the rates like?
A: Rates are often lower than the major banks, which typically results in a lower penalty should the mortgage be discharged prior to the end of the term. Monolines do not have posted rates like banks do.
Fun Fact: the average a Canadian is in their mortgage is 3 years.
Q: Besides a low rate, what are some of the other benefits to using a monoline?
A: Monolines typically have smaller penalties in the event you have to break you mortgage. They also have pre-payment options that are typically better than the banks. Monolines register a "standard charge" term on the title of your property which allows you to move to any lender once your term is up to take advantage of the best rates on the market. Banks and credit unions tend to register "collateral charges" which would make you incur legal fees to transfer your mortgage at the end of the term.
Q: Are there any risks to deal with a monoline?
A: Just like the major banks, monolines are regulated by the federal government so they follow similar lending regulations and are subject to satisfying the same guidelines for qualifying and approving customers.
Fun Fact: many monolines receive their funding from major banks!
Q: What if a monoline decided to leave the marketplace?
A: Another lender would take over their mortgages and the terms and conditions of their existing mortgage stay intact. A great example is FirstLine Mortgages. When they decided to leave the marketplace, CIBC took over their book of business and now services all of those mortgages.
As brokers, it is our job to make sure our clients pay the least amount of money over the term of their mortgage and for years after that. Every circumstance is different and we make sure to evaluate every client's needs and make recommendations for lenders based on these needs.
Do you have questions about your current mortgage or about a future mortgage? Contact the experienced Winnipeg Mortgage Brokers at One Link Mortgage today (204-928-7722) to discuss your options.