There are many differences between the banks, credit unions and monoline lenders. Working with “monoline lenders” are usually beneficial for my clients.
The banks have many “bricks and mortar” buildings to operate, staff to pay and services to offer their clients whereas “monoline” lenders usually only have one service to provide. Mortgages and sometimes lines of credit. They don’t have the costs of buildings, staff and services of the big banks, therefore, they can offer better personalized service to borrowers as the profits are made with less expenses.
Monoline lenders are only accessed by mortgage brokers therefore, again, I am able to provide you with personalized individual advice and am available when convenient for you, not when the banks are open.
But the most significant difference is the way monolines calculate early discharge penalties as opposed to how the bank does it. Statistically speaking, the average mortgage time a runs is actually 38 months, not the 60 months that most people sign for, therefore, when the mortgage is broken, the lender requires a penalty to break the contract early. This is much like your cell phone contract. Getting your mortgage through a broker with a monoline lender can save you significant dollars!
Mortgage agents are cognizant of these facts and will place your mortgage with a lender to best suit your current and future needs.
For further info. Read this blog by
Michael Hallet Dominion Lending Centres – Accredited Mortgage Professional