MonCana moves to cover switching costs

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There's more than one way to skin a cat and more than one way for lenders to up their appeal for brokers in an increasingly competitive market.

MonCana Bank of Canada is now offering a switch program with no legal/appraisal fees on CMHC/GW insured mortgages.

“It is something we have been looking at for three months now,” says MonCana Bank president James Clayton. “We wanted something simple and easy for the client.”

The switch program offer is also available on one- and two-year terms, and is offered to their broker network for mortgages currently insured by CMHC or Genworth Financial.

The fees are being handled by an internal insurer, removing one of the extra financial stings involved in switching mortgages from one lender to another (as well as paying the FNF and title insurance costs).

As the mortgage being transferred means that the existing mortgage agreement is transferred at Land Titles – and not registered as a new mortgage – substantial savings are realized by the borrower.
MonCana joined the channel in 2011, headquartered in Calgary with a recently opened office in Toronto.

It is focused on the origination, sale and servicing of single family mortgages, originating both mortgages and deposits through brokers.

MonCana is run by James Clayton and Gerry Wagner, who built and sold ResMor Trust to GMAC, after their involvement with the development of Bridgewater Bank.

“We are always looking at improving, offering more services,” adds Clayton, who hinted that the announcement of a whole new channel is on the horizon for MonCana.

  • wow on 2013-02-01 3:44:41 AM

    How is this news? C'mon CMT...Only available on 1 or 2 year terms and Insured only...we need some real lenders with real products. What a huge loss of ING & Firstline. We need more balance sheet lenders...

  • Welbanks on 2013-02-01 4:50:21 AM

    I'm glad to see they are catching up to everyone else, but how is this really newsworthy? Not to mention that these guys haven't done anything great... both Resmor and Bridgewater are bottom of the barrel lenders with many obstacles to overcome before they can be considered credible lenders.
    I think you need to find better content.

  • Jake on 2013-02-01 4:51:23 AM

    I agree-this isn't news. MCAP offers a free switch program where they pay appraisal and legals. Other lenders do, too, and don't limit you on the term. MonCana isn't trying anything new here. If I was a new lender coming into the space I would offer something NOBODY has, not something everyone does and limit it even further.

  • MP on 2013-02-01 6:06:33 AM

    If you read the article you would notice that it said "also" on one and two year terms. I believe that other lenders are only switching on five years and greater usually.
    If someone would switch regular mortgages that are registered "securing a running account"--that would be newsworthy.

  • Brad Herd on 2013-02-01 7:04:00 AM

    Welbank -
    For the record, Resmor is now RMG and was purchased by a solid lender named MCAP sometime ago. RMG has some very unique mortgage options as compared with other lenders such as a 35 year amortization and 3% cash back product. I certainly wouldn't call RMG "bottom of the barrel" when less than a handful of lenders have this to offer!

  • MM on 2013-02-01 8:33:25 AM

    Another non-balance sheet lender trying to make a meal out of a snack.

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