Our 3.99% 6-Mo Fixed is the lowest mortgage rate available in Canada.

What is a mortgage finance corporation?

True North Mortgage is an MFC, a lender that only provides funds for mortgage borrowing, different than the 'multi-product' offering of big banks. It's just one of the reasons we're able to offer you industry-best rates and service.

Mar 04, 2024

Originally posted April 4, 2016

A mortgage focus to save you money and time.

What is a mortgage finance corporation (MFC)?

It's a 'non-depositor' type of lender in Canada that lends solely for (typically residential) mortgages and mortgage-related products, like HELOCs. It doesn't hold deposits for clients (like in a chequing or savings account) or offer other products, like credit cards, and typically doesn't have physical locations.

This 'one lending branch' means less overhead, allowing cost savings to be passed to clients for what is likely their biggest financial commitment.

True North Mortgage is a MFC, but we're different. We're both a lender and a mortgage broker so you have the luxury of mortgage choice.

And, we offer an in-person mortgage experience at 12 store locations across Canada (some clients prefer to look their mortgage broker in the eye when dealing with their mortgage decisions).

At True North, you get the full mortgage picture.

True North Mortgage is BOTH a residential mortgage lender and a broker, to ensure you have access to all lender options, including big banks, for your very best rate and product fit. Apply with us, today or find a friendly, expert broker who speaks your (mortgage) language.

Who can access MFCs?

Major banks can't access mortgage finance corporations on behalf of a client, but as a mortgage brokerage, we can.

We have access to several lenders (for traditional, alternative and private lending solutions) to shop for the mortgage that saves you the most money and time. That includes major banks, trust companies — and MFCs, including our in-house lender, THINK Financial.

A Canadian home buyer or owner may be able to access a particular mortgage finance corporation. However, many MFCs use an arms-length brokerage channel to sell their mortgages to you.

That means they can't always offer a direct mortgage relationship like True North Mortgage does – our highly-trained brokers are listed on our website so that you can contact them anytime.

How are we both a lender and a broker?

Already one of Canada's largest independent mortgage brokerages, in 2016, True North Mortgage became the first brokerage to establish a CMHC-approved MFC lender — our in-house THINK Financial.

It was a big deal, and it took years. But we did it — because we're innovators in the mortgage lending space and knew that having our own lender would further cut down costs and lender red tape. It brought our clients faster mortgage approvals and a simpler process, saving them even more money, time and stress.

As a MFC that stands out in a crowd, we can offer many benefits beyond your lower rate.

We focus on residential mortgages. That means we're set up to offer your best rate with speedy, personalized service. Our rates are proven to be 0.20% lower on average compared to all our competition, including other MFCs (for years now).

We also have the best service in the industry. Our happy clients have left us over 15,000 5-star reviews, the most by far of any mortgage lender, including big banks.

The best of the MFCs, we offer faster approval times, more flexible pre-payment options, lower fees and penalties, and highly trained, salaried (non-commissioned) brokers who can help you in your preferred language.

The mortgage benefits we offer you as a MFC:

  • Lower mortgage rates due to lower overhead are passed on as savings, which can translate to lower penalties if you need to break your term
  • A simpler process, and you aren't cross-sold on other products you may not need, such as chequing or savings accounts, personal insurance, investments, or credit cards
  • Direct access to better mortgages with your great rate
  • The same strict regulations and client protections that are in place for the major banks
  • Savings at renewal — MFC mortgages are typically registered on title as a 'standard charge' instead of 'collateral charge,' which means you can transfer to another lender at renewal without incurring legal fees (providing there isn't a 2nd mortgage or secured line of credit on the title)
  • Customized short-term solutions for complex mortgage situations — such as for property investors, people with varied income sources, and self-employed individuals
  • Faster approval times than big banks, crucial for deals with an urgent closing date
  • More flexible mortgage features, like pre-payment privileges and recasting
  • Best-in-class mortgage advice, service, and convenience — for free
  • Great digital calculators and tools and an easy online mortgage application

Your mortgage situation is unique, and every client has different mortgage needs. But all our clients deserve the best rate and simple, stress-free process. We assess your details, quickly and thoroughly, to determine which lender is the best fit — and quite often, we recommend a MFC lender.

Are there any risks in using a MFC?

Mortgage finance corporations are no riskier than any other type of bank. They're in the business of lending money, not holding it, but they have the same strict government regulations as the major banks. They also must follow similar disclosures and lending guidelines. In fact, many MFCs actually receive their funding from major banks.

Should an MFC terminate their business operations, another financial institution would take over their mortgages. For example, when Scotiabank acquired Maple Trust, or FirstLine was acquired by CIBC, all of the held mortgages stayed 'as-is' throughout the process, with virtually no impact on the borrower.

At True North, we turn our lens to your best mortgage solution.

Whether you choose a mortgage through our in-house lender (and its industry-best rates and products), or we pair you with a different one, our highly trained True North Mortgage brokers will find your best option to save thousands.

We're salaried and non-commissioned, so you get unbiased advice that fits you, not a particular lender. It's our job, which we love.

We make it easy. And we're here to help. Stop by, give us a call, chat up our chatbot, Morgan, or apply online. One of our friendly, expert mortgage brokers will help make your (mortgage) day.

We make it easy to save. Apply with us today.