What is Monoline Lender in Canadian mortgages?
A lender that offers only mortgages — no chequing accounts, credit cards, or other banking products. Typically offer lowest fixed rates and most borrower-friendly prepayment penalties (3 months interest only, not IRD).
Monoline Lender example
Worked example
MCAP, First National, RMG: offer 5yr fixed at 4.89% vs Big Bank posted rate of 6.49% with 3-month interest break penalty.