Half a trillion dollars of mortgages originate in Canada every year, representing half a million people making one of the largest financial decisions of their lives. But, as anyone who’s been fortunate to buy a home will know, the process is still antiquated – requiring in person meetings, paper documents, and weeks to close. This is partly due to lack of competition.
In Canada, 80-90% of mortgages originate from one of the big six banks. By comparison, in the US, only 30% of mortgages originate from any bank, with the remaining 70% owned by non-bank lenders, like Rocket Mortgage, who innovate with technology to cut out inefficiencies and offer a more convenient and affordable mortgage.
Enabling a true end-to-end digital lender for Canada requires not just great software but an ability to navigate capital markets, and regulatory and operational complexity.
That’s why we’re excited to share our investment in Pine, a full-stack digital mortgage lender for Canada. I (Seth) am also joining the board.
We’ve known co-founders Justin Herlick and Jonathan Shih collectively for over a decade. They both bring unique experience as leaders from Greylock backed Blend and Instabase, where they built mortgage origination software and workflow automation tools. That, combined with their deep network in Canada, makes this team one of the few who can navigate the complexity to make home ownership more accessible and convenient for Canadians.
Pine follows in the footsteps of other recent Canadian fintech success stories, including Greylock backed Wealthsimple, which have become category leaders. Pine’s ‘apply anytime, anywhere’ model offers convenience and ease for homebuyers.
Here’s how Pine is reinventing home financing:
- Apply in under 10 minutes. The quick application process offers flexibility to complete when convenient for consumers—not the bank.
- Digital-first online applications. No longer are working couples, families with young children, or those with multiple jobs tied to visiting a broker in-person between 9 – 5.
- Lowest-price-first rates. No negotiating, no hidden fees, and no closing costs. The lowest rate available is the first rate offered to consumers.