There’s a new sheriff in town. First National has taken over the coveted #1 lender position in the mortgage broker channel, at least according to D+H data.
It’s an honour that Scotiabank has held for three years (since Q2 2011).
We don’t know how much volume each lender did on MorWeb last quarter, so this title isn’t definitive. But D+H is the dominant origination platform so First National’s position is nonetheless noteworthy.
Here’s a rundown of other lenders’ broker market share performance, as of Q2 2014:
| Rank | Lender | Market Share* |
12 Mo |
| 1 | First National | 18.1% |
+80 bps |
| 2 | Scotiabank | 17.5% |
-70 bps |
| 3 | Home Trust | 9.7% |
+300 bps |
| 4 | Street Capital | 8.8% |
-360 bps |
| 5 | TD Canada Trust | 8.3% |
-90 bps |
| 6 | MCAP | 6.7% |
-170 bps |
| 7 | RMG Mortgages | 6.1% |
+370 bps |
| 8 | National Bank | 4.4% |
-70 bps |
| 9 | Merix Financial | 3.4% |
-70 bps |
| 10 | Equitable Bank | 2.6% |
+50 bps |
Quick takes:
- Notable share gainers were:
- First National (up 80 bps …) – It’s had an impressive run since it was “only” 12.3% of the market at the end of 2012, coming close to #1 but never closing the distance, until now.
- Home Trust (up 300 bps …) – Home Trust better send the banking regulator a Christmas card this year. OSFI’s B-20 guidelines stoked Home’s alternative business while the regulator’s favourable ruling on interest-only strips made securitization more cost effective, revamping Home’s “A” mortgage business.
- RMG Mortgages (up 370 bps …) – RMG posted one of the biggest quarterly share gains we’ve seen, thanks in large part to its genius Low Rate Basic product. That mortgage should be a case study. RMG is now threatening to overtake its parent (MCAP) in market share. But MCAP’s new and exceptionally priced Value-Flex mortgage may beat back those advances.
- Notable droppers included:
- Street Capital (down 360 bps …) – Street is still a broker favourite at #4 but it’s been sadly out of the market on rates.
- MCAP (down 170 bps …) – More than ever, being uncompetitive with pricing will kill a quarter. But MCAP is turning things around and (as noted above) its new Value-Flex mortgage couldn’t come at a better time in this hyper-rate sensitive market.
* 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)
Last modified: August 7, 2014
