If you have spoken to a Mortgage Advisor, chances are you have heard the term “Monoline Lender”. A monoline lender, by definition, is a mortgage lender that focuses on just mortgages. They do not have any other products that can be cross-sold and most monolines securitize their mortgages, instead of keeping them on their balance sheet. Monolines are secure, follow the same rules as all Canadian Banks and they deal exclusively with Mortgage Advisors on their clients’ behalf.
Some of the advantages of dealing with monoline lenders are that their rates are usually very competitive and many have products that specialize in different areas, such as lower credit scores and self employed clients that have little income to report. These lenders can also have a lower IRD (Interest Rate Differential) penalty calculation, which is important if you are required to get out of your mortgage before the end of your term.
If you have questions about whether or not a monoline lender is the right fit for you, talk to one of our Trusted Mortgage Advisors today!