In Canada, upward of 90% of mortgages are tied to a major bank.
In 2022, a Canadian financial technology startup emerged from stealth with a Series A round of funding to buck this trend.
Toronto-based Pine, founded in 2021, offers a digital-first approach to Canadian mortgages.
Founders Justin Herlick and Jonathan Shih believe that by eliminating unnecessary costs and lengthy processes that come with in-person applications, Pine can offer Canadians lower rates and a more efficient process than traditional banks do with their “outdated” methods.
Wealthsimple agrees.
The Toronto fintech, vying to become Canada’s next major banking institution, this week unveiled mortgages as the latest in a long line of product offerings.
Partnering with Pine, Wealthsimple promises “low rates, exclusive rebates, and incentives for having your investments in one place.”
Wealthsimple opted to collaborate with Pine, the company says, because “Pine is the triple threat of mortgage lenders: digital, direct, and regulated.”
“Determined to save you time and money, they create efficiencies by automating tasks like underwriting and removing go-betweens like brokers,” Wealthsimple says of Pine. “They’re changing the way Canadians do mortgages—kind of like what we did with money.”
Wealthsimple offers up to a 0.15% rebate on mortgage rates based on a client’s “status” with the institution (Core, Premium, or Generation).
To access a Wealthsimple mortgage, the fintech says users can apply online, answer “some general questions,” and receive a personalized rate within minutes. Next, Pine assigns an agent to discuss next steps. Finally, with a closed mortgage, rebates are deposited into a user’s Wealthsimple Cash account monthly.
En route Wealthsimple’s stated growth target of $100 billion within five years, the fintech continues to pump out upgrades, enhancements, and enticements in 2024.
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