Are monolines innovating enough to stay competitive?

“Monoline lenders will remain competitive. For many years now, they’ve helped Canadians purchase homes, and I don’t see any reason for that to change. There’s an old saying that ‘the only constant is change,’ and the mortgage game is no different. Rules, regulations and the lending environment are always changing – this is nothing new.

Another old saying is ‘necessity is the mother of invention,’ and frankly I feel this couldn’t be truer than with today’s lenders. Monolines will evolve to serve Canadians as they always have. I don’t see that changing anytime soon.”





“When the mortgage rule changes came into play, it was unclear which insured lenders would still do refinances and rentals. The monoline lenders were very much tied up with bulk insurance issues and having to pro-rate their interest rates to offset some of the product risks.

That said, most of them are back to where they need to be and competing nicely. The monoline lenders have given extra basis points in commissions for buy-downs in order to compete. It’s not always about rates; sometimes the service side wins out. We definitely need monolines in the mix.”





“Across the board, the recent rule changes caught our industry flat-footed, and both monolines and banks have been slow to respond. However, until the full impact of the rule changes is understood, I do not expect to see the immediate innovation in the A lending sphere that we hope for.

Instead, monoline innovation will first take place in the Alt-A and B markets, where niche opportunities can be more readily identified and products created. The industry and market are in the early stages of another transition, and monolines will continue to adapt to meet the needs of consumers going forward.”