Bank products superior to monolines'

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Brokers often prefer sending business to their monoline partners rather than to one of the big banks and CMP’s forthcoming Brokers on Lenders survey will provide those partners with details on how to better compete.

The main reason brokers choose to send deals to banks over monolines is due to a more comprehensive product offering, according to preliminary results. The number of brokers (50 per cent) who cite product offering as the main differentiator has ticked up eight per cent  compared to last year’s result.

According to one pollster, access to lines of credit and non-resident and new to Canada programs through the banks are some of the reasons he chooses to send certain deals to that channel.

According to CAAMP’s most recent report, banks currently account for 47 per cent market share compared to mortgage brokers’ 39 per cent share.

Another obstacle facing monoline lenders, according to 28 per cent of participants, is client bias.

“Clients feel more comfortable with the bank that is recognizable then one they have never heard of before,” one broker who took the poll said.

Overall, the Brokers on Lenders survey is viewed as barometer of broker satisfaction with their most important partners. The CMP research is also the most straightforward and influential message mortgage brokers will send to their lenders, say industry professionals.

That’s all the more so with increasing competition from the banks and a number of credit unions across the country. The survey and comments aim to offer valuable advice on how lenders can better position the industry.

Click here to take part.
 
  • Dave on 2014-08-05 11:53:39 AM

    Yes the banks have an IRD calculation that is superior to monolines....just ask your last bank client what they paid in penalties lol

  • Jay on 2014-08-05 2:06:07 PM

    I assume you're being facetious? Banks IRD is anything but superior. Monolines, without their POSTED rates, offer greater advantages without a doubt

  • Glen G on 2014-08-05 2:38:54 PM

    Don't forget automatic Collateral Mortgage/Charge registrations...

  • Jon on 2014-08-05 3:56:02 PM

    weird how so many people on this and other broker sites criticize the big banks, but 2 out of the top 5 by volume market share are Scotia & TD. If brokers dont want to send deals to banks then dont, but there's an awful lot of you sending them clients

  • Jay on 2014-08-05 5:14:47 PM

    ^^^ Maybe you're not understanding the responses here, or perhaps you just like to be argumentative. The points made were regarding the big banks penalty structure (IRD) - which DOES merit criticism. The banks have their place just like any other lender, but there can be vast differences that make monolines look more attractive.

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