To accommodate the wide-ranging needs of prospective home buyers, we maintain sound relationships with a diverse group of lending partner in the Canadian mortgage industry.
The question however is… which mortgage lender is best for you?
The lender best for you, will all depend on who you are as a borrower, what your current situation is and what your situation will look like in the future. A lender, by simple definition, is a mortgage lender who provides financing for a real estate purchase, therefore the word – lend. The following is a summary of the choices available to you when looking at the four different types of lending groups.
Big Banks: Big banks are especially appealing to first-time home buyers as it offers a sense of comfort knowing your mortgage is being dealt with by a nationally recognized financial institution. Because of their size and financial resources, big banks may offer lower mortgage rates than other types of lenders. Paying a lower rate reduces your monthly payments and saves you money on total interest expense over the life of your loan.
Credit Unions: One of the biggest benefits of credit unions, is that they are not federally regulated. They are provincially regulated. They are therefore not required to adopt federal mortgage rule changes unless they want to. This can be an extreme benefit to those considering rental properties, those with unique income/employment situations or complex transactions that chartered banks do not, or cannot work with.
Monoline Lenders: Monoline lenders are supported by mortgage brokers, and in turn, mortgage brokers are supported by monoline lenders. You cannot access mortgage products that a monoline lender offers without using a broker, as they typically do not have physical branches or locations. The benefits are, low-interest rates, very competitive privileges with pre-payment and portability, fast turnaround-times and the best part, significantly lower penalties for breaking a mortgage.
Private Lenders: The benefit of a private lender is that anyone who has inconsistent income, poor credit history or any type of severe risk in their application could get an approval. Your interest rate is going to be significantly higher and the privileges such as prepayment and portability are going to be significantly less.
Our lender relationships increase the level of competition for your mortgage, resulting in better rates and terms for you, the home buyer. If either a refinance, or a longer amortization is something your are considering, or if you are in the process of buying your first home, check in with us. We can assist you purchase a new property, or optimize your current mortgage.
Original article: www.dominionlending.ca