“…We’ve been at the forefront of a significant change in the structure of the Canadian residential mortgage market…With the success of this mortgage we have seen above average credit quality and importantly, the proportion of mortgages approved that are ultimately closed have also risen. We’ve attracted new customers and established a foundation for productive long-term relationships.”
Frank Techar, BMO’s President and CEO, Personal and Commercial Banking Canada, adds:
“We benefited because we now have customers who are going to be with us for a while and we saw a significant increase in new customers coming to BMO through the campaign as well. So, putting a fine point on it, our market share went up 21 basis points in Q3, so we did more business than some of our competitors. It’s obviously an important product to us…”
Techar says BMO is “going to compete really strongly going forward,” and the mortgage industry should believe him.
The question is, will BMO’s Big 6 competitors see its strategy as a big enough threat to launch fierce pricing of their own.
While we wait for that answer, smaller lenders and brokers will undoubtedly run specials of their own, generally with less restrictions than BMO’s offer.