When you’re shopping for mortgages, there’s a good chance you spend a fair amount of time looking at options. You might contact a variety of banks, credit unions, and finance companies. However, unless you’re talking to mortgage brokers too, you might be missing out on another kind of financing: monoline lenders.

What Are Monoline Lenders?

Monoline lenders are lenders that provide funding specifically for mortgages. Typically, you will find tons of great information on the lenders on their websites! Most monoline lenders are happy to provide mortgage information based on their lending options, however, we do encourage you speak with a mortgage broker to see all options provided by all lenders available.

Why Should You Consider a Monoline Lender?

When you hear that you might be putting the biggest investment in your life into the hands of monoline lenders that you can’t call or pop in to chat with, you might feel a little nervous. That sounds a little less than secure, doesn’t it?

However, the big reason everyone should consider reputable monoline lenders accessed through their mortgage brokers is that they will almost certainly save you money.

Think about it. Your bank has to cover the cost of all their branches, their staff, their ad campaigns, and more. They split the risk of various investments across all of their services, so there’s a good chance you’re also subsidizing some higher-risk investments with your mortgage.

Monoline lenders don’t do any of that. They have extremely low overheads, and they’re not using your money to shore up some of their less stable investment deals.

Finally, monoline lenders also tend to charge lower penalties if you should ever need to break your mortgage. So, they do save you money every step of the way.


MCAP is an example of a very popular monoline lender.


Is It Safe to Use a Monoline Lender?

Yes. Just like other lending providers, monoline lenders have strict guidelines and are heavily regulated so you can feel safe talking to them about mortgage options.

Most of them insure all the mortgages they offer their clients, so you never have to worry that they collapse if people stop paying for whatever reason, and they have the same lending guidelines as big banks. So, they’re not going to risk their stability or their other client’s money by gambling on bad investments.

How to Find Out More About Monoline Lenders

Whether you choose to use a monoline lender or not, it’s a good idea to find out more about all your mortgage options. Contacting a mortgage broker is the easiest and best way to see ALL options available for your mortgage. Mortgage brokers do business with banks and credit unions as well, so you know you’re getting all the options on the table.

You might be very pleasantly surprised at how much money you can save purchasing your new home when you work with the finance companies you don’t see on TV! If you speak with a mortgage broker, at least you know you have all the information from all available lenders to make the best decision. Contact one of our professional brokers by submitting a contact form today!