Often times we get asked, "are the lenders you deal with safe, I mean... I have never heard of them before?" And that is a good question.
Let me assure you that all the lenders we place mortgages with are lenders licensed to operate in each province that they lend in. The reason you may have never heard of them is because they don't have storefronts and exclusively lend through the mortgage broker channel.
"By having no storefront, a monoline lender is able to keep their costs down, offer you preferential rates, products and service" Andrew Howard, Merix Financial
I found this video from Merix Financial; one of our lending partners, that does a great job explaining how mortgage loans work and how they are made available to Canadians.
MERIX Financial on Monoline Lenders
A monoline lender is a business that focuses on operating in one specific financial area
As such, your typical monline lender is really good at what they do because the focus all their attention doing it. They are continually looking for ways to provide innovate products and better rates to offer potential mortgage holders through the broker channel.
Advantages of Using a Broker
The number one advantage in using a broker compares to dealing strictly with one financial institution is choice. End of story. Period.
At First Foundation, our mandate is to provide professional council to assist our clients with the selection of a mortgage that is best suited to them.
Ask yourslelf, what incentive is their for a lender to offer competitive rates and products if they have no competition? It is actually choice and competition in the broker channel that keeps interest rates low and product lines diversified making home ownership accessible to Canadians.
So you might have heard the phrase "we shop the lenders for you, so you don't have to". Although that is partially correct, we do the leg work so you don't have to, it's the word "shop" where I get hung up, it has a negative tone. I prefer saying "we represent you to various lending institutions that we have a healthy relationship with in order to secure mortgage financing".
Business is all about relationship, we strive to have the best possible relationship with our clients AND our lender partners.
We believe the best way for us to represent our clients to our lender partners, is to develop the best possible relationship with them. This means being as organized and efficient as possible for the sake of profitability, which directly impacts the way our lender partners view our clients applications. When all is said and done, we all want the same thing, the best product and rate available for you, our client!
First Foundation Lender Partners
Here is a list of our Canadian Lender Partners - We look forward to placing your mortgage with one of these financial institutions. Thinking about making the plunge into homeownership, why not complete a mortgage application now?