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PROFILE

Today we meet a startup using a digital-first approach to transform the mortgage industry as we know it. Let’s meet Pine.

What is Pine?

Pine, a Toronto-based fintech startup founded in 2021 by Justin Herlick and Jonathan Shih, is transforming the mortgage industry in Canada through a digital-first approach. It aims to streamline the home financing process by offering an entirely online experience, allowing Canadians to apply for a mortgage anytime, anywhere, with approvals often processed within 24 hours.

Pine’s key mission is to eliminate the inefficiencies and high costs associated with traditional banks by digitizing the entire mortgage process from application to loan finalization.

Pine launched with a $27 million funding round led by Greylock, with participation from Inovia Capital, Intact Ventures, and other venture partners. Its co-founders leverage their experience in Silicon Valley’s digital mortgage transformation, particularly from Herlick’s time at Blend, a U.S.-based mortgage tech company.

Key Innovations and Features

• Digital-First Platform: Pine’s platform allows for a fully online mortgage application process, reducing the need for in-person bank visits. Users can complete applications in under 10 minutes and receive pre-approvals quickly.

• No Hidden Fees: The company prides itself on transparency, offering its lowest rates upfront without negotiating or hidden fees.

• Mortgage Broker Model: Pine operates as a mortgage broker, relying on partnerships with financial institutions to provide loans while working toward becoming a licensed mortgage lender. The company is also pursuing Canadian Mortgage and Housing Corporation (CMHC) approval, which would allow it to offer insured loans independently.

• Direct-to-Consumer Focus: Pine competes by offering lower rates than traditional banks and leveraging its direct-to-consumer model to simplify the mortgage process for homebuyers.

Growth and Partnerships

Pine has plans to expand its services across Canada, currently focusing on Ontario. A notable partnership with Wealthsimple allows Pine to offer competitive mortgage rates and exclusive rebates, providing further convenience by integrating mortgages into the broader digital financial ecosystem offered by Wealthsimple. This partnership also gives Pine access to Wealthsimple’s large customer base, helping it grow its brand in the financial space.

Market Position

Pine aims to disrupt a Canadian mortgage market dominated by big banks. Its biggest competitors include startups like Nesto and Perch, which offer similar digital mortgage brokerage services. However, Pine differentiates itself by striving to become a licensed lender, a significant challenge given the capital and regulatory requirements. Its long-term vision is to be the "Rocket Mortgage for Canada," providing a recognizable and trusted name in the mortgage sector.

Key Takeaways for Founders and Tech Professionals

Digital Disruption of Traditional Markets: Pine demonstrates the power of digital transformation in industries ripe for disruption, such as the mortgage industry, which has long relied on manual, in-person processes. Founders can draw inspiration from Pine’s streamlined, user-centric approach to service delivery.

Partnerships as Growth Levers: Strategic partnerships, such as Pine’s collaboration with Wealthsimple, can accelerate growth and brand visibility, allowing startups to tap into established customer bases and financial ecosystems.

Regulatory Hurdles: For tech professionals looking to disrupt regulated industries, Pine’s journey to becoming a licensed lender under CMHC approval highlights the complexities of navigating regulatory landscapes.

Capital Efficiency and Scaling: Pine’s ability to secure significant venture capital from leading investors such as Greylock and Inovia Capital highlights the importance of strong investor relations and a clear growth strategy when scaling in fintech.

Customer-Centric Technology: By focusing on customer convenience—fast applications, no fees, and a completely online process—Pine provides a roadmap for tech founders on how to use technology to radically improve user experience in traditionally cumbersome processes.

Pine’s innovation lies in leveraging fintech capabilities to tackle the inefficiencies of traditional banking, creating a more accessible and affordable mortgage process for Canadians.

Pine was also listed as one of the top Canadian startups to work for.

We interviewed Justin Herlick at a recent event and featured him on a past episode of our Founder’s Journey Series.

Check out what he said a few years ago about the goals for Pine and how they were building.

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COMMUNITY

Calling all job seekers! Are you free on October 3?

Curious about looking beyond the bounds of Toronto for your next tech job? We have you covered!

We are partnering with Calgary EcDev to throw a Job Fair, that brings together some of the top FinTech startups and leaders who are looking for promising talent!

The event is FREE to attend and is your chance to meet those looking to hire in the Calgary area!

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