Poll results: Banks vs. Monolines in the porting debate

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When it comes to porting a mortgage one type of lender reigns supreme, according to a recent poll.

MortgageBrokerNews.ca recently asked readers whether banks or monolines offer more flexibility when it comes to porting mortgages and the results skew heavily in favour of monolines.

MCAP and CMLS all have good porting options … it is sometimes a deciding factor when I place mortgages,” reader Christina Horvath commented. “At MCAP and CMLS you can blend and qualify at the contract rate of the five year fixed. Extend is not the same with these three lenders. But the real advantage is the qualifying at the five year rate.”

And many brokers agree.

72 per cent of those polled say monolines offer more favourable conditions when porting a mortgage, compared to 28 per cent who prefer the banks. The poll was inspired by one reader who believes the bank offerings are superior.

“My experience is that the big banks are far superior to the monolines when it comes to porting the mortgage. Try getting a bridge loan with some monolines and their silly restrictions. Their porting restrictions are there to force the client to break the mortgage,” one anonymous commenter wrote in response to a mortgagebrokernew.ca news story. “The big banks give you up to six months in some cases to port. Good luck getting this with monolines. Further, some of the big banks allow for multiple tiers within a mortgage so that the client does not need to blend and extend like the monolines require you to do.”

However, one broker believes a third option is the best way to go.

“I use my local credit unions extensively and having been both a bank and a credit union lender/manager/underwriter before becoming a mortgage broker, nobody can match up with what my CU partners can do and allow,” one BC-based broker wrote on MBN. “I have tried ports/blends/extends and switches with various lenders/monolines and I always end up back with my CUs.”


Brokers discuss client disclosure and credit unions
  • John on 2015-02-26 12:34:08 PM

    When it comes to porting a mortgage CU's have one big disadvantage. If you have to move out province you will not be able to port your mortgage and will have to pay a penalty to break the mortgage. Also some CU's you have to live in a certain distance from the nearest branch. If there is no branch near your new home, you will not be able to port your mortgage. I will take a monoline over a bank

  • Kate on 2015-02-26 2:10:54 PM

    some CU's do operate in more than one province. CU's also have much more flexibility than a bank or monoline, and offer common sense, in a banking industry that has lost that.
    I have worked in for banks, credit unions, and as a broker, CU is my choice over monoline or bank any day!! If the only fault the CU has is charging a penalty and cant port, big deal!! banks and monolines still cant do what CU can do for you!!!! limitations on bridge financing, or no port option, with other lenders, turn off!! Service is what I want for my clients!! CU's give so much better service !!

  • John on 2015-02-26 2:56:12 PM

    I use to work for a CU. I have no problem with them but clients should be aware that you can not in most cases port a mortgage out of province with a CU.

  • Chris Murphy on 2015-02-27 12:14:34 PM

    Street Capital just advised they port, blend and extend. Add money, extend the term another 5 years and no penalty. Unlike Scotia, it wont be a STEP collateral so Street gets my vote and Scotia loses out.

  • John D. on 2015-03-03 12:39:19 PM

    For Brokers/Agents, banks should always be our last resort. They are not focussed on client's best interest, they are focussed on the Shareholders. Plus, at the end of the day the banks work against us. Monolines like Street, First National, etc. are there to service us.

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

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