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…
Rank | Lender | Market Share* | 12 Mo Change |
1 | Scotiabank | 16.3% | -130 bps |
2 | First National | 15.2% | 0 bps |
3 | MCAP |
8.6% | +50 bps |
4 | Street Capital |
8.4% | -180 bps |
5 | Merix Financial |
6.9% | +100 bps |
6 | RMG Mortgages | 6.8% | +50 bps |
7 | Home Trust |
6.7% | +30 bps |
8 | TD Canada Trust |
6.7% | -40 bps |
9 | Equitable Bank | 4.6% | +160 bps |
10 | B2B Bank | 2.3% | -40 bps |
Quick takes:
- 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 count MorWeb volumes (D+H’s smaller competitor) and leave out a few lenders who D+H doesn’t report, like CMLS Financial.
If I was a broker who used National Bank I wouldn’t worry about hitting status. They won’t be around long.