Banks handled 56.5% of broker mortgage volume last quarter.¹ That’s up more than six percentage points from Q4 2010 and comes directly at the expense of non-bank lenders.
On an individual lender basis, the ranking of the top six broker lenders is unchanged since our March 10th market share report. FirstLine, Scotia, First National and TD remain #1 through #4 respectively.
Scotia is just 70 basis points of market share behind first-place FirstLine, which is down from 210 basis points in Q4.
Vaulting into the seventh position (all the way from 10th) is National Bank. Its remarkable 59.8% Y/Y volume increase was the biggest in the top 10.
That’s due in part to a highly competitive status program that features leading rates, cash back and free appraisals. Another contributor to National Bank’s volume gains is its popular All-in-One mortgage, which remains the industry standard for a readvanceable mortgage.
MCAP had the 2nd biggest volume jump Y/Y, leaping 47.9% and securing its 5th place broker share ranking. Ron Swift, President of MCAP Service Corporation, attributes that to highly competitive pricing, a new compensation structure, elimination of MCAP’s “sale-only” breakage clause, and revamped products.
“In today’s competitive marketplace, service and compensation programs have to be there,” says Swift, “but we’ve also been trying to take advantage of pricing when windows of opportunity allow.”
On the rate side, MCAP has led the market on several occasions. The best part is that MCAP (like Merix and a few others) makes great rates available to all brokers—not just “status” brokers. With so many lenders imposing volume minimums, that is absolutely a service to the broker community.
¹ Davis+Henderson is the key source of market share data in the broker industry.
Rob McLister, CMT
Last modified: April 26, 2017
MCAP has done an awesome job of turning things around while continuing to offer great service. Today offering 3.79% Quick Close which now rivals Vancity 3.84% which has been our saving grace from losing everything to the Banks. We can also buy down the Prime -75 at MCAP to Prime – 80 and the client can make additional payments anytime whereas with the credit union it is on anniversary date only which defeats the low rate purpose. Job Well Done MCAP!! All we need is a Spring Market now!!
Would you mind posting the rest of the market share leaderboard, specifically the top 10 and preferrably the top 15 or 25 lenders?
Thanks so much!
Cheers,
Doug
6 – Street Capital
7 – National Bank
8 – Macquarie
9 – ING
10 – Merix
I don’t think it’s the banks who are the threat in BC. It’s the credit unions!
I am surprised that TD Canada Trust is in fourth considering now that they register there mortgages as collateral mortgages now. There is very little up side to have your mortgage registered as a collateral mortgage. TD is just building a bigger fence around its clients.
Don’t expect TD to fall out of 4th place for a while. There is a wide gap in volume between TD and MCAP who is in 5th place. TD actually picked up market share in the last year but I doubt that will continue for the reasons you mentioned.