Mortgage Market Share – Q4

Market-share-mortgageIt’s been a while since our last lender market share update. In this instalment we’ve included non-broker channel lenders as well, courtesy of data from David McVay and McVay and Associates.

As you’ll see, the last 12 months have been a boon to some lenders and rather punishing to others.

Below are the largest federally regulated lenders (based on mortgages on balance sheet). This data is as of January 2014…

Rank  Lender Market Share*

12 Mo Change

1 RBC 17.0%

+11 bps

2 Scotiabank* 15.5%

-56 bps

3 TD 15.3%

+42 bps

4 CIBC 12.3%

-33 bps

5 Desjardins 7.5% +7 bps
6 BMO 7.3%

+40 bps

7 National Bank 3.0%

+9 bps

8 HSBC 1.5%

-12 bps

9 Home Trust 1.4%

+2 bps

10 Laurentian Bank 1.2%

-3 bps

  * Includes ING Direct, which Scotiabank acquired

Quick takes:

  • BMO’s Low Rate Mortgage continues to drive its market share growth. Despite its restrictions, it remains the lowest advertised 5-year rate of any major bank.
  • ING’s and CIBC’s market share drops largely reflect the volume losses that resulted from leaving the broker channel.

Here are the current market share leaders in the broker space, as of Q4 2013…

Rank  Lender Market Share*

12 Mo
Change

1 Scotiabank 18.9%

+10 bps

2 First National 15.7%

+350 bps

3 TD Canada Trust 12.0%

+360 bps

4 Home Trust 9.1%

+160 bps

5 Street Capital 7.9% – 170 bps
6 MCAP 5.6%

– 460 bps

7 National Bank 4.6%

– 50 bps

8 Equitable Bank 3.4%

+80 bps

9 Merix Financial 3.0%

– 40 bps

10 RMG Mortgages 2.4%

+50 bps

Quick takes:

  • Overall broker channel volume fell 2.4% in Q4, year-over-year.
  • The big news is credit union growth. While still a small slice of the broker market (3.7% according to D+H), credit unions posted 41% volume growth in Q4, year-over-year.
  • Notable movers included MCAP (down a whopping 460 bps of share), First National and TD (up 350 and 360 basis points respectively).
  • Laurentian Bank moved from 8th to 15th and saw a 70.7% drop in volume year-over-year. That was largely due to B2B Bank’s temporary withdrawal from the market while it integrated AGF’s broker operations.
  • ATB Financial, which operates only in Alberta, rocketed from 17th to 11th place in the market share standings.

* Broker Market Source: D+H puts out a terrific non-public report called Lender Insights, which compiles lender market share data in the mortgage broker industry. We receive data from that report via third-party sources and have quoted it here. The data above is not confirmed, but is believed reliable. Note: These market share figures do not count MorWeb volumes (D+H’s smaller competitor).


Rob McLister, CMT

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