Posted by Ryan Womeldorf / Uncategorized / 0 Comment
Top 5 Lenders in Canada
When it comes time to find a mortgage, there are a lot of things worth considering. Finding the right mortgage means having your finances in order and the documentation to support it. But it also means working with lenders in Canada that can suit your needs.
The right lender will comprise more than a few things. They should offer a deep line of mortgage products to meet the needs of their diverse clientele. Moreover, they should provide peace of mind when working with them. Being able to shop with confidence is an essential part of the homebuying process.
But who are these lenders? What are the best lenders to work with if you are looking to find a mortgage in Canada? Here are 5 of the best mortgage lenders in Canada and all that you need to know about them.
1.) MCAP
MCAP is one of the largest independent Mortgage Finance Companies in Canada. They have over $111 billion in total assets under their management. With that kind of asset level, it is safe to assume that millions of Canadians use their services every single year.
MCAP offers three lines of mortgage financing. Their residential mortgages are their most widely-used service, but they also offer commercial mortgages as well as development financing for those looking to create a new build.
They house 25 institutional investors and have serviced more than 225,000 homeowners all across Canada. They offer not only excellent expertise, but flexibility for offering financial products that suit the needs of their clientele.
Though they are a relatively new company having been founded at the end of 2015, they have quickly emerged as one of the favored names in the industry. Dealing with large institutional lenders means getting product and rate stability. As one of the leading lenders in Canada, that is precisely what you get from using MCAP.
2.) First National
First National Financial Corporation, or First National for short, is one of the largest private lenders in Canada. The Toronto-based company has five regional offices throughout Canada: Toronto, Calgary, Halifax, Montreal, and Vancouver.
What makes First National such a good choice is that they are among the top three in total market share for Canada’s mortgage broker distribution channel. Since being established in 1988, they have grown to hold Just over $118 billion in total assets, showing their impact on the Canadian mortgage industry.
As they have continued to build their mortgage portfolio, their ratings with the DBRS have also improved. They now have “good” ratings for both Primary Residential Mortgage Servicing as well as Special Residential Mortgage Servicing for DBRS.
They also have achieved several strong ratings for FITCH. As a commercial primary servicer, they earn a CPS3+ rating. As a commercial master servicer, they have a CMS3 rating. And finally, they have a CLLSS3 rating as a commercial loan-level special servicer.
Simply put, First National has become one of the most trusted names in the mortgage industry today. They offer the same level of trust and reliability that the major financial institutions (banks, basically) offer to their borrowers.
3.) Manulife Bank
Despite its name, there are some questions about whether or not Manulife is actually a bank. That is because, as of 25 years ago, Manulife Bank became the first branchless bank in Canada. They perhaps saw the evolution towards technology before other banks did, understanding the mobile nature of their customer base.
Manulife Bank appeals to their clientele in just that way today. They know that instant access is of the utmost importance. That means being able to transfer money, pay a bill, or even fill out a mortgage application with just a few clicks.
Since launching in 1993, they have offered a wide array of flexible products. These products are meant to serve their clientele. They have literally thousands of banking products for their clients across Canada and their financial advisors help to devise the perfect product for those needs.
Though they are a bit smaller than the two previous lenders in Canada, they are nothing to scoff at. They have just over $27 billion in assets. They have all-in-one mortgage products that help to reduce mortgage interest and payments for their customers.
Their Manulife Bank Select mortgage product allows for customization. Customers can divide their mortgage into several different portions, each with its own interest rate, term, and amount. That even includes a payment schedule that works best for your budget.
Manulife Bank has proven itself to be a leader in technological innovation in Canadian Banking. That has not changed with their mortgage offerings to Canadians of all sorts.
4.) Scotiabank
Scotiabank is another of the major public lenders in Canada. They are also one of the oldest financial institutions in the country, having been founded nearly 200 years ago (March of 1832). Originally based out of Halifax, Nova Scotia they are now headquartered in Toronto, the financial mecca of Canada.
Scotiabank serves over 25 million customers around the world, offering far more than just mortgages. They have personal and commercial banking, corporate banking, investment banking, and wealth management.
Scotiabank has a diverse and customizable set of mortgage products. Through their website, customers can create their own mortgage experience all without having to go into a Scotiabank branch to get things started.
Scotiabank has one of the most comprehensive mortgage offerings in the country. Given their global presence, it makes sense that they have the diversity and financial assets to assist Canadians (and others) in getting the mortgage that they need.
With variable rates, fixed rates, and Scotia Total Equity Plans, there are plenty of choices to suit the mortgage needs of Canadian customers.
5.) Home Trust
Home Trust (also known as Home Capital Group) is a public lender that was founded in 1977. They offer traditional banking services like retirement savings plans, investment certificates, tax-free savings accounts, and more.
But they are also one of the top mortgage lenders in Canada. They work with some of the best mortgage brokers in Canada to help those who may not otherwise qualify to buy a home. They are especially good at dealing with customers who are new to Canada and looking to buy their first home.
Home Trust is one of the smaller public lenders out there with a few hundred million in revenue as of 2018. That does not change the fact that they are one of the more dedicated, customer-friendly lenders in the country.
Their reviews show that they work with lenders that are deemed subprime by the larger, more traditional lenders. That means that Canadians who may have not been able to land a mortgage otherwise can get one through Home Trust.
Traits of the Best Lenders in Canada
When looking for a lender, there are a few essential traits to keep in mind. After all, the difference between finding a mortgage that works for you and one that becomes an albatross can be minor in nature.
Here are 5 traits in particular that you should look for when considering the various lenders across Canada.
1.) The Best Lenders in Canada Will Walk You Through the Process
Very few people are actually mortgage experts. Even those that are pretty well versed with the process are likely missing a few tidbits of information. That is why it is imperative to have a mortgage loan originator that can help.
A good loan originator should be willing to out of their way to help clients not only understand what the process encompasses. For first-time homebuyers in particular, that can mean the difference between getting the right mortgage and winding up with one that is more an issue than anything else.
The right lender will work with buyers to see what they are eligible for with a better understanding of what the basic necessities are. That also means having the right documents to get through the entire process.
2.) The Best Lenders in Canada Have Great Communication
There may be nothing worse than working with a lender who does not communicate well. A great mortgage loan originator is able to respond in a timely manner. Not only that, they make it a priority to keep you informed.
Some mortgage lenders don’t reply in a timely manner. It can be an expedition to get a response back in a timely manner. That just makes the entire process more frustrating and difficult, souring the process of buying a home along the way.
The right lender will make it a priority to respond in a timely manner. The truly great lenders will show some intuition and will reach out to you without needing to be called first. Those are the lenders that can make all the difference at the end of the day.
3.) The Best Lenders in Canada Welcome Questions
Part of the home buying process is that the buyer is not quite as informed on the subject as they probably should be. Even then, doing a cursory Google search can only do so much before asking a professional becomes the only answer.
Even if you have actually bought or sold real estate before, there are no doubt questions that you may want to ask. It is essential that prospective buyers, whether first-time or not, be able to ask the questions that pertain to their unique situation.
A truly great lender will also have a few questions of their own. They should understand the unique look of everyone’s personal circumstances and ask the questions that are relevant to that specific buyer. More importantly, they will raise points about your mortgage and specific requirements that can both educate the buyer and help them land a better rate.
4.) The Best Lenders in Canada are Organized
As aggravating as it can be to have a lender who doesn’t seem engaged in your circumstances, the ones that can’t keep their stuff together are worse. The documents needed for a mortgage are of the utmost importance and organization can mean the difference between getting a great rate and falling behind.
A great lender has to be able to not only create a structured schedule but keep up with one. That means listing out every to-do that has to be completed during the process. Imagine, for instance, trying to schedule an appointment with a lender only to realize that they have scheduled with someone else at the same time.
Make sure that you have a lender that keeps an organized schedule. You should feel like a priority no matter which lender you wind up choosing.
5.) A Good Lender is Direct
One of the more underrated qualities of a good lender is that they are direct and forthright. A lender that will not be is a detriment to the buyer. By being less than honest, they are not putting the buyer in the best position nor giving them an idea of where they stand.
It is important to know that no matter what the question, the lender will be honest about it. If they are evasive or clearly not telling the complete truth, it is time to find a new lender. Being less than honest will just hurt the buyer in the end.
Building trust is more than important in the lender/buyer relationship. Being able to trust the lender is of the utmost importance for the buyer. Knowing that they are getting the straight answer can make a huge difference at the end of the day.
SaskEquity Can Help Navigate the Various Lenders in Canada
Perhaps most importantly, have the help that you deserve when finding the right home. SaskEquity has the tools, knowledge and experience to help you every step of the way. Going it alone means running into situations that you are not prepared for.
By having a professional in like SaskEquity in the mix, you can feel comfortable and confident during your home buying journey. Don’t find yourself in an unfavorable mortgage. Go with a professional that can help get you the rate and terms that best work for you.
Working through the housing market, particularly with as hot as it is now, can feel daunting. But starting with a proper lender, you can make the entire process just a bit easier. Talk to SaskEquity to start and you can ensure that you get the proper rate and terms that you need.
Arm yourself with the tools needed to get a great mortgage. Then you can focus on finding the house that best suits your needs.
