WHAT IS A MONOLINE LENDER?
- johnathanmcquoid
- Jan 18
- 2 min read
If you’ve never heard the term Monoline Lender, you’re not alone — and most people react with suspicion the first time they hear it.
Why would a “bank” you’ve never dealt with be willing to loan you hundreds of thousands of dollars?
Here’s what you need to know 👇
🏦 Monoline lenders aren’t banks — and that’s a GOOD thing
Monoline lenders focus on one product only:
✔️ mortgages
No chequing accounts
No savings accounts
No credit cards
No RRSPs, GICs, or TFSA products
Because they only offer mortgages, they don’t need giant branch networks, big marketing campaigns, or banking packages — which saves them a fortune, and that savings gets passed on to YOU.
🧠 Why you’ve never heard of them
You won't see Monoline lenders on:
• billboards
• TV commercials
• bus benches
• branch locations
Why?
Because they operate exclusively through mortgage brokers.
Your day-to-day banking remains exactly the same — the only difference is your mortgage payment gets pulled from your existing bank account.
All communication is done by phone or email, and brokers handle the setup.
💰 Why you SHOULD want a Monoline lender
Monoline lenders often offer:
✔️ Lower interest rates than major banks
✔️ Better pre-payment privileges
✔️ Much lower penalties if you break your mortgage
To illustrate…
If you break a fixed mortgage early:
• A big bank (RBC, TD, CIBC, etc.): $10,000–$20,000+ penalty
• A Monoline lender: typically $2,000–$4,000
That difference alone can save you thousands.
🔍 Why they matter more than ever
Most people focus ONLY on rate, but the penalties and terms are often far more expensive in the long run.
Monoline lenders are designed to be:
✔️ consumer-friendly
✔️ transparent
✔️ cost-effective
✔️ flexible
And they don’t try to cross-sell you products you don’t need.
💬 Final Thought
Monoline lenders shouldn’t be feared — they should be appreciated.
They are some of the most competitive, consumer-focused mortgage providers in the country, and one of the biggest tools we have to save clients thousands of dollars.
If you want to compare Monoline vs big-bank options or find out which is best for your situation, send The Frontline Mortgage Group a message anytime. 💬