Brokers own a larger share of the mortgage pie, according to recently released statistics.
Mortgage brokers funded 33% of mortgages currently held by Canadians, according to Mortgage Professionals Canada’s Annual State of the Residential Mortgage Market in Canada
That’s up from 30% in both 2015 and 2014 respectively.
Brokers increased their share of purchases in 2016 to 43% -- up from 42% a year ago. They did, however, concede a chunk of the renewal and refinance business this year, owning 25% (-2% year-over-year).
“For all current mortgages on homes, 56% were obtained from a bank,” Will Dunning, MPC chief economist, said in the report. “Mortgage brokers had a 33% share, credit unions were the source for 7% of these mortgages, followed by 2% from life insurance or trust companies and just 2% reported obtaining their mortgage via an ‘other’ source.”
Despite brokers increasing their share by 3%, bank representative share remained relatively unchanged at 56% -- down from 57% last year.
Credit unions, however, continue to see their share dwindle.
Those financial institutions have seen their share fall from 9% in 2014 to 8% in 2015, and finally to 7% this year.
“Measured as a share of total mortgage principals, for purchases during 2016, banks account for 49%, mortgage brokers for 45%, and the other categories of mortgage professionals account for 6%,” Dunning said.