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Broker Lender Market Share – Q2 2018

A whopping 89% of broker volume was routed to the top 10 lenders in Q2, according to reported Finastra data.

That’s the most on record, going back to when we started tracking lender share in 2010. Much of it is thanks to Desjardins being included in Finastra’s market share report for the first time.

Here’s a look at how all the top 10 broker lenders fared in Q2:

Rank  Broker Channel Lender Market Share
Q2 2018*
12 Mo Share
1 Scotiabank 22% -470 bps
2 MCAP / RMG 16.3% +210 bps
3 First National 13.9% +120 bps
4 TD Canada Trust 9.9% +130 bps
5 Merix Financial 5.5% +100 bps
6 Desjardins 5.2% +250 bps
7 Street Capital 5.1% -120 bps
8 Equitable Bank 5.0% +50 bps
9 Home Trust Company 4.2% +60 bps
10 Manulife Bank 1.9% +80 bps

The Highlights:

  • Scotia came back down to earth in Q2, not because it can no longer dominate the broker market, but because it chose not too. Its rates were purposefully less competitive in Q2 in an apparent effort to “right-size” its broker market share and elevate margins.
  • MCAP/RMG posted record share, largely on the back of league-leading insured/insurable variable rates. MCAP/RMG has almost singlehandedly helped brokers out-price aggressive non-broker competitors (like HSBC) putting it in/near the lead for 2018’s MVL (most valuable lender).
  • Desjardins was the big winner in this report. Not only did it debut on Finastra’s report this past quarter, but it catapulted 250 bps to secure sixth spot. The Quebec-based lender’s executive team has a mission ramp up share in our channel, and that’s exactly what it did last quarter, thanks largely to sharp uninsured pricing.
  • Manulife Bank leads all top lenders year-to-date with 93.3% growth.
  • B2B Bank almost fell off the charts completely, plunging from 3.6% share last year to 0.2% in Q2. Now that Laurentian Bank (its parent) has completed the review of its mortgage loan portfolio, B2B’s pricing is slowly improving and it will start moving back up the ranks.

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 certain Newton or MortgageBoss volumes (Finastra’s smaller competitors) and leave out a few lenders that Finastra doesn’t report by name, like CMLS Financial.