Collaboration aims to streamline mortgage process with faster approvals and competitive rates
Wealthsimple has entered the mortgage arena through a strategic partnership with the Toronto-based digital mortgage startup Pine.
The companies have launched a co-branded mortgage product that utilizes Pine's digital application platform and advisory support. The new offering promises a significantly quicker approval process compared to traditional banks.
"Wealthsimple clients can expect to get a personalized pre-approval rate in minutes from Pine and a formal approval in less than 24 hours," Pine said in a joint news release.
Justin Herlick, CEO and co-founder of Pine, noted that mortgage applications at major banks typically take one to three days for a conditional rate and 30 to 45 days for full processing.
"We know how hard our clients are working to save for a home, but they’re troubled by high interest rates and soaring house prices," said Simon Lejeune, vice president of growth at Wealthsimple. “It’s time for mortgages to evolve, and our partnership with Pine will help lessen the application and rate pain for millions of Canadians.”
The companies said the partnership will allow them to offer more competitive rates based on a client's assets held with Wealthsimple. Customers may qualify for a cash rebate on their mortgage, where rates will decrease by 0.05% for every $50,000 transferred to Wealthsimple.
All underwriting and lending will be handled by Pine, with the digital lender's software automating many administrative tasks to increase efficiency.
"The mortgage industry has been outdated for decades, bogged down by processes that haven't really changed since the 1940s," Herlick said. "Right now, 80% of mortgages are controlled by the big banks, leaving millions with no choice but opaque rates and delays. It's time for a change."
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