Mortgage Market Share — Top 10 Lenders

Big-BanksBanks control three out of four mortgages in Canada’s $1.1 trillion mortgage market, and their share has been growing.

We recently spoke with someone who makes it his business to track mortgage market share, David McVay of McVay and Associates Ltd.

Being incorrigible mortgage data addicts, the figures David shared were fascinating. We’ll convey the highlights over the next week.

First off, since everyone loves a good top 10 list, here are the top 10 Canadian mortgage lenders by market share…

The Big Hitters

Rank Lender Mortgage Book Market Share 12 Mo Chg
1 RBC $186.3 billion 17.08% +32bps
2 TD Bank $157.0 billion 14.40% +87bps
3 CIBC $148.7 billion 13.64% -9bps
4 Scotiabank $145.7 billion 13.36% -15bps
5 Desjardins $81.3 billion 7.46% +5bps
6 BMO $71.2 billion 6.53% -38bps
7 First National $40.8 billion 3.74% +27bps
8 ING Direct $30.2 billion 2.77% +3bps
9 National Bank $29.3 billion 2.69% +22bps
10 HSBC $19.7 billion 1.81% -12bps

 

Market share figures are estimates based on data from OSFI, the Bank of Canada, and McVay’s proprietary sources. Data is as of November 2011 (there is a lag in reporting). These statistics reflect both off-balance sheet securitized mortgages (prior to IFRS) and mortgage securitization retained on balance sheet as securities.

Some quick takes:

  • Canada’s Big 5 banks hold two out of three mortgages (65% market share).
  • The growth leader has been TD (Yes, despite criticism for its collateral charge mortgages). McVay says: “Collateral charges are a trend I expect to see right across the industry, as a way to secure customer relationships.” That’s because collateral charges generally make switching lenders more costly.
  • BMO has shed significant mortgage share since exiting the broker market (more on that this weekend), and also because of its strategy to build share in HELOCs.
  • National Bank has been doing well, says McVay, “largely from mortgage portfolios that it’s been buying, its broker association and its Power Financial linkage.”

 


SourceMcVay and Associates Ltd.

McVay and Associates is a source of market intelligence, strategies, tactics and monthly market share data in retail banking. Founded by David McVay, a 30+ year veteran in financial services, McVay and Associates produces two widely-referenced industry reports: The Banking Personal Market Report and The Credit Union Report.


Rob McLister, CMT

 

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