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Broker Market Share – Q4 2014

We just got our paws on year-end market share data for lenders in the broker channel. One stat jumped out in big neon lights.

According to D+H data obtained from a source, the mortgage broker channel funded about 25% more volume in the fourth quarter of 2014 than one year prior. That’s a massive swing. What accounts for this surge, we can only speculate. Playing at least some role is the fact that broker rates were exceptional vis-à-vis the banks.

Just as notable, banks took only 33.6% of the broker market in Q4. That’s down from 51.8% three years ago, when CIBC and ING Direct were still in the channel.

Here’s a look at the market share leaders in the broker space in 4th quarter 2014…

Rank  Lender Market Share* 12 Mo
1 Scotiabank 15.6% -330 bps
2 First National 14.4% -130 bps
3 Street Capital 10.1% +220 bps
4 Home Trust 9.2% +10 bps
5 MCAP 8.0% +240 bps
6 TD Canada Trust 7.8% – 420 bps
7 RMG Mortgages 5.7% +330 bps
8 Merix Financial 5.6% +260 bps
9 National Bank 5.2% +60 bps
10 Equitable Bank 4.3% +90 bps


Quick takes:

  • The top 5 lenders captured 57.3% of the market in Q4, the lowest total since the start of 2012.
  • TD Canada Trust’s share plunged 420 basis points y/y as it prepared for a cutover to its new underwriting system. Expect a sizable rebound in the first half of 2015 as the new platform ramps up in Ontario and Western Canada. Add in fixed rates that are more competitive than usual, and fewer bank options in the channel, and TD’s broker volumes should take care of themselves.
  • Scotiabank shed 330 basis points but we can’t make definitive comments because there’s no way to know how much of its volume is running through D+H competitor MorWeb.
  • RMG Mortgages and MCAP jumped 330 and 240 basis points, respectively. That’s attributed largely to the success of their “less-frills” mortgages, which boast some of the lowest rates in the business.



* 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).