In recent years, a variety of Internet technologies have emerged that allow businesses of all sorts to digitize and automate a large portion of their tasks. The mortgage field, alongside every other field, has been impacted, and many companies and startups have risen to the task of creating platforms to move the processes of lending, comparing, brokering, notarizing, and receiving mortgage loans online. Here are some companies doing this in Canada.
Ratehub.ca is an aggregator of brokers and lenders. Borrowers can go to ratehub.ca and either choose a loan directly from one of ratehub’s partner lenders, or they can find a broker through the website. Because they are primarily an aggregator rather than a broker or lender, they make most of their money through the partnerships with other organizations and fees from each referral of a borrower to their partner. However, they do own a brokerage as well. They have 800,000 users a month and are partnered with some of the biggest financial institutions in Canada.
Borrowell is a credit company, which focuses primarily on monitoring credit and loans across the customer’s accounts. However, Borrowell does give clients the option to monitor and refinance loans, which includes their mortgages. The mortgages are only one kind of loan among many, so Borrowell gives advice on how to generally improve credit score through the mortgage loans along with credit score reports.
Mogo.ca is quite similar to Borrowell, in that it is a credit app which contains a variety of general credit capabilities, such as investing, cryptocurrency, a credit card, and identity fraud protection. However, Mogo’s mortgage technology is more developed than Borrowell’s: Mogo is a broker, so they offer mortgages and other loans. This allows borrowers not only to refinance as Borrowell does but to actually take out loans facilitated by Mogo.
There are several technology companies in Canada bringing cutting-edge technology to different segments of the mortgage market. These companies bring the process of filing a loan to the Internet, often with greater speed and lower default rates than traditional mortgage methods. Some already do business with the largest companies in the mortgage industry; due to the immense fallout of the government’s pandemic response, these companies and companies like them are likely to increase their market share in Canada and elsewhere, as industries once dominated by paper adapt to the adoption, now likely permanent, of remote methods of reporting and filing mortgages.