Brokers at par with banks on new mortgages - CAAMP.

by |

Broker gripes aside, the new mortgage rules may have helped them grow market share, with CAAMP’s latest report suggesting brokers are now even Stephen with banks in terms of new mortgage originations.

Of consumers who consulted mortgage professionals, 47 per cent of 2,000 respondents obtaining mortgages this year did so through a bank, while 47 per cent went with mortgage brokers, according to the CAAMP-commissioned online poll by Maritz Research.

Banks, however, enjoyed a substantial lead over brokers in renewals, cornering 70 per cent of the business as opposed to brokers’ 15 per cent and credit unions’ 12 per cent.

In the aggregate, for all current mortgages (regardless of when they were obtained), 58 per cent of respondents obtained their loans from a bank, with 25 per cent from a mortgage broker. That’s down from the 27 per cent overall share brokers enjoyed last fall.

Still this fall’s new originations represent real growth for brokers, growing from 32 per cent in fall 2011.

Nonetheless, many brokers have complained that lending guidelines and rule changes introduced by the Harper government have been overkill for a market already in slow-down mode.

“The government was putting out a fire that was already dying,” said Paul Sobieski, of The Mortgage Group in Vancouver in an earlier interview.  “We were headed for a correction anyway.”

But there’s some indication they have also encouraged more consumers to turn to brokers for new originations, if not yet renewals and refis.

  • Chris on 2012-11-21 4:08:52 AM

    I would propose that if a Broker does his job correctly there should be little reason to move the client at renewal...We are supposed to be working in the clients "Best Interest", not our own. When my clients come up for renewal I will look at the offering from the lender I placed them with, if it is not competitive I will call the lender and suggest they match my best offerings, or I will take the client elsewhere. 99% of the time the original lender will provide my client with the best rate at renewal with no work, cost or effort involved.
    No, I don't get paid again, but I'm not doing this for me...
    My client is happy, the lender is happy, & I have built a long lasting realtionship with both the client and the lender.
    Sure, there are times when a switch or a move at renewal is warranted, but if you are moving every client at renewal just to make a buck I would suggest you ARE NOT working in your client's best interest, no matter how you try to justify it.

  • Ed on 2012-11-21 5:16:59 AM

    Chris, why don't you hang up your license and go work for the banks. If that is your attitude and your business model, why don't you walk all your clients to the bank and have them match your rate. That way your client is happy, your happy, and you did little or no work, like you said. What a contradicting comment and slap in the face for brokers across the board.

  • Jim A. - Toronto and Durham Broker on 2012-11-21 5:52:22 AM

    Chris...I do not like to tell fellow mortgage brokers/agents what to do. But you must be careful what you do and how you justify what you are saying.

  • Jeff W on 2012-11-21 6:37:43 AM

    Wow...did you guys actually read Chris's post? Sounds like a pretty honest broker to me, Ed kinda sounds like those old mechanic stories where you take the car in for a tune up, and he replaces the whole engine, even though there was nothing wrong with it. Honesty is the best policy guys...

  • John Dearin RPA,. AMP. on 2012-11-21 10:17:39 PM

    I applaud cris for this. He must originate a hell of a lot of mortgages to be able to do this, or he's got rich sugar momma/daddy in the background. Our refi's bring in a good chunk of our income and I could not afford to do what he is doing

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions