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Broker Lender Market Share

Broker Lender Market Share – Q3 2017

Whaddayaknow? Scotiabank’s #1…again.

The broker channel’s most-used lender racked up even more market share in Q3, courtesy (in part) of Finance Canada’s competition-curbing mortgage insurance regime.

The top five lenders accounted for a stunning seven out of 10 brokered mortgages on the D+H Expert platform last quarter, the greatest ratio since we started tracking share in 2010. And with the prohibition on insured refis, insured rentals, insured 30-year amortizations and insured high-value properties, it’s no coincidence that most banks took a bigger piece of the pie while most non-banks coughed up share.

(Note: These numbers are not perfect proxies for the industry because they don’t include applications sent through Newton. But they’re close.)

Now we have the first quarter to look forward to, and likely gains for credit unions once B-20 is implemented. That assumes provincial regulators don’t rain on the CU parade. Ontario’s credit union regulator, DICO, reportedly told credit unions last week that it is “assessing the applicability” of certain OSFI B-20 guidelines as it updates credit unions’ mortgage underwriting guidelines.

In any case, here’s a look at how last quarter shook out in the broker market:

Rank  Broker Channel Lender Market Share
Q3 2017*
12 Mo Share
1 Scotiabank 28.3% +830 bps
2 MCAP / RMG 12.6% +30 bps
3 First National 11.9% -50 bps
4 TD Canada Trust 11.7% +300 bps
5 Street Capital 6.3% -330 bps
6 Equitable Bank 5.2% +30 bps
7 Merix Financial 4.9% -240 bps
8 B2B Bank 3.7% +180 bps
9 Alberta Treasury Branches 1.5% +90 bps
10 Manulife Bank 1.4% +110 bps

Quick takes:

  • Overall, banks seized 12.7%-points more share in Q3 compared to Q2 (bringing them to 53.8% of the broker market). Monolines lost 3.8%-points, leaving them at 29.8%.
  • Scotia’s broker share is the highest of any lender since 2010, when we started tracking this data.
  • Scotia’s arch rival, TD, grew healthily from Q2, capturing the #4 spot. With its solid refinance rates, it appears poised to knock First National and/or MCAP out of second or third place.
  • Home Trust continued its precipitous decline, falling out of the top 10 for the first time in 6+ years.
  • Having made its debut in the top 20 earlier this year, Manulife Bank showed no signs of letting up by breaking into the top 10 last quarter.
  • Among the provinces, Alberta (again) posted the biggest drop in submission volume, down 4.9%. And Ontario also shed market share, down 0.6% from a year ago. Quebec led the gains among the provinces, up 4.4%, followed by B.C., up 1.5%.

Data Source: Finastra puts out an excellent 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 Newton volumes (D+H’s smaller but growing competitor) and leave out a few lenders that Finastra doesn’t report by name, like CMLS Financial.