What is a Monoline Lender?

General Kristin Handsaeme 7 Aug

What Is a Monoline Lender?

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.

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, 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.

Would it help Monoline Lenders to advertise and create brand awareness with the public? Absolutely. Is it necessary for them to remain in business? No.

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 bank like CIBC or RBC. 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.

Monoline Lenders are not to be feared, they should be welcomed, as they are some of the most accommodating and client service-oriented lenders around! If you have any questions, contact your local Dominion Lending Centres mortgage professional today.

Ryan Oake

Ryan Oake

Dominion Lending Centres – Accredited Mortgage Professional

My First Home

General Kristin Handsaeme 2 Aug

My First Home-Our House Magazine

We all remember our firsts. Our first day of school, our first bicycle and our first love. It’s no different for our first home. And I remember mine like it was yesterday.
I bought my first home shortly after turning 19 in the late 1980s. It was a single-family home in the River Springs neighbourhood of Port Coquitlam B.C. I paid $83,600. I took advantage of a government program at the time that let me use my RRSPs to come up with part of the down payment. I also needed two roommates to help make the mortgage payments, so it ended up feeling a bit like a frat house. Being a typical starter property for the time, all the homes on the quiet cul-de-sac were like little Hobbit houses, scrunched together.
But I sure was proud of my little home. I kept my yard in great shape; the driveway was always swept, and I filled the house with plants and hosted dinner parties.
Even as a teenager, I couldn’t wait to buy my first home. Not only did I want to impress my mother, but I figured homeownership would give me a sense of independence and accomplishment.
A year later, I decided to sell. Not because I’d grown tired of the home, but prices had skyrocketed in the area. I sold the home for $113,000. Not too bad for one year. I figured the property value had risen so quickly, I was never going to make that kind of money again. The house today is probably worth 10 times what I originally paid.
I’m often asked, when is a good time to buy? We know the last few years, especially here in B.C. and in Southern Ontario, home prices have really taken off. And in recent months a cooling off period appears to have set in. Watching the markets closely can make a prospective buyer question the right time to jump into the market.
I’d say it was the best time 10 years ago, it’s the best time now and it will be the best time in 10 years from now.
I believe everyone should make an investment in their first home as soon as they possibly can.
You have to pay for shelter anyway, and homeownership is the best form of forced savings.
So if you decide to take the plunge into home ownership this year for the first time, enjoy it. I can tell you first hand, it’s something you’ll never forget.

Gary Mauris

Gary Mauris

Dominion Lending Centres – President and CEO