Broker Lender Share – Q1 2014

Market-share-mortgageMortgage broker volumes inched 1.9% higher in the first quarter, according to data from D+H. That data also showed that non-deposit-taking lenders have taken the lead back from banks in broker volume.

The ones racking up market share gains weren’t deposit takers, however. Non-prime and credit union lenders took that distinction, posting 17.4% and 12.6% broker volume growth respectively, year-over-year.

Here’s a rundown of the other Q1 market share data:

These are the current market share leaders in the broker space, as of Q1 2014…

Rank Lender Market Share*

12 Mo
Change

1 Scotiabank 18.2%

-120 bps

2 First National 14.6%

+150 bps

3 Home Trust 10.1%

+180 bps

4 Street Capital 10.1%

-260 bps

5 TD Canada Trust 8.1%

+70 bps

6 MCAP 6.6%

-320 bps

7 National Bank 5.1%

+100 bps

8 RMG Mortgages 4.1%

+190 bps

9 Merix Financial 3.6%

-40 bps

10 Equitable Bank 3.5%

+100 bps

 

Quick takes:

  • Notable share gainers were:
    • RMG Mortgages (up 190 bps thanks to excellent rates, a popular Low-Rate Basic product and its semi-exclusive 35-year amortizations)
    • Home Trust (up 180 bps due partly to market-wide growth in alternative mortgages and, to a lesser extent, its re-emergence in insured lending)
  • Notable droppers included:
    • MCAP (down 320 bps of share — It has been far out of the rate market)
    • Street Capital (down 260 bps, which we can’t explain)
  • Outside of the top 10, conspicuous movers included Canadiana Financial (which got back in the game, up 70 bps) and Bridgewater (which has sunk to an almost irrelevant 0.2% share).
  • In the last year, the ratio of fixed-rate mortgages has slid considerably. As of Q1, 71-72% of brokered mortgages had fixed rates. That compares to the peak of roughly 93% in June 2013.

* 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 are not perfect because they don’t count MorWeb volumes (D+H’s smaller competitor).


Rob McLister, CMT (email)

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