Firmwide Data From DLC

As the largest mortgage broker firm in Canada, Dominion Lending Centres (DLC) collects loads of valuable statistics. So when we asked for data on how mortgage rate buydowns are affecting brokers, we were very happy it obliged.

Here is some of the information the company provided to CMT. Note: These figures do not include Mortgage Centre Canada, which is owned by DLC:



The above numbers highlight some notable trends:

  • There’s been only a slight downtrend in broker compensation per deal, suggesting pressure on brokers to buy down mortgage rates has been less than first thought. Since the bulk of successful brokers are older and more experienced at selling value (not just rate), and since online rate comparison is still not mainstream (at least according to Maritz data), it could potentially take 2-5 more years before we see widespread material drops in average basis points per deal. That reflects this author’s best guess only.
  • DLC and Mortgage Centre set volume records this summer, as did multiple other industry firms. That’s likely due to internal growth initiatives to some extent, but we can’t ignore that the mortgage market is exceeding expectations yet again. BMO Capital Markets says mortgage growth is almost back to 6% year-over-year. That’s the highest in two years and 100-200 bps above most analysts’ expectations at the start of the year. This rising tide is lifting more boats throughout the mortgage industry, thanks to astoundingly low rates and non-stop house appreciation in the major metros.
  • DLC’s average volume per agent is up 77% in five years to $7.86 million. That compares with anecdotal industry estimates that range from $4.5 to $5.5 million. DLC has clearly brought on more productive brokers in recent years, and worked hard to train existing brokers how to be more productive. Quality training is not only in the agent’s best interests, it’s vital to a company that relies on a 5% royalty from every commission.

We stress that these numbers should not be extrapolated to the industry as a whole, but they’re thought-provoking nonetheless. Brokers just getting into the business, for example, might find them helpful for benchmarking purposes, as might competitors looking to improve their own production.