First-quarter market share data is in and the numbers are strong. Volumes in the mortgage broker channel are up 21% from the same time last year, according to D+H data provided by sources.
The split of variable-rate mortgages increased noticeably as well, to roughly 28% of brokered mortgages at the end of March. That’s almost a three-year high. Variable mortgages had their biggest share back in May 2011 (our records go back six years), when roughly 44% of broker customers chose floating-rate mortgages.
Here’s a look at the market share for leaders in the broker space as of first-quarter 2015…
TD Canada Trust
The market titans, as a group, aren’t producing like they used to. Overall market share by the top 5 lenders continued to fall, reaching 54.9% in Q1. That’s down from 57.3% in Q4, and the lowest total since we started tracking this data in 2010.
If you combine MCAP with its RMG Mortgages division, it amounts to the #2 lender in the broker channel. Both lenders are still on a tear, up 170 bps and 220 bps, respectively. They continue to benefit from the success of their “less-frills” mortgages, which continued to boast some of the lowest rates in the business.
Home Trust slipped significantly thanks to a 38% plunge in its Accelerator prime mortgage business (caused in part by mediocre rates).
TD Canada Trust’s share also continued to dive. It is now almost half of its 12% mark in Q4 2013. But TD’s vastly improved underwriting system is not yet live nationwide. Once it is, it should combine with TD’s improved rates, better buydown system and new compensation promotion to regain share.
Outside the top 10, the biggest movers were B2B Bank (190% growth y/y) and XCEED Mortgage Corp. (415% growth y/y)
* 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).