Broker channel mortgage volumes continue to grow, but somewhat slower than the industry average. Overall broker-originated mortgages rose 4.4% in Q2 versus the same quarter in 2015.
Bank share of the broker market fell another 4.1% y/y. That’s on top of the 3.4% y/y decline in Q1. Banks now hold just 30.8% of the broker segment, the least since we began covering this survey (and down from almost 60% in 2010).
Here’s a look at the reported market share for all top 10 lenders in the broker business, as of second quarter 2016…
TD Canada Trust
Scotiabank extended its losing streak, shedding another 130 bps of market share year-over-year. It’s now just 110 bps in front of First National, its slimmest first-place margin since Q3 2014.
If you combine MCAP with its RMG brand, the company has the second biggest share at 15.4%.
Equitable Bank posted the best year-over-year gain at +160 bps. It’s offering some preferential pricing to certain brokers and that (in part) seems to be paying off.
National Bank sunk to just 2.3% share, down 150 bps y/y. That’s its worst showing since we started tracking these stats in 2010. Its peak was 6.1% share two years ago. The bank’s steady decline is a worrisome trend that (we hate to say this) makes one question the top brass’s commitment to the channel.
Monoline lenders have never had a bigger presence. They now lead the broker market with 47% share.
Among the provinces, B.C. once again posted the biggest year-over-year gain in submission volume, up 3.8%. And once again Alberta posted the biggest drop, down 2.5%.
Data 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 countMorWebvolumes (D+H’s smaller competitor) and leave out a few lenders who D+H doesn’t report, like CMLS Financial.
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