Brokers gaining traction, but banks catching up

Brokers gaining traction, but banks catching up

Brokers gaining traction, but banks catching up A new report suggests bank reps are gaining ground in their ability to convert first time homebuyers into clients.

The CAAMP spring survey report, compiled by the national organization between January 2013 and May 2015, found mortgage brokers were able to take 64 per cent of first-time buyers from ‘consult to sale’ – that is, from prospect to client. Bank representatives, meanwhile, were able to convert 63 per cent of first-time buyers from consult to sale.

But brokers still have a lot of work ahead of them: 75 per cent of first-time buyers consulted with a bank rep, compared to just 61 per cent of first-time buyers who consulted with brokers.

But brokers on the ground say the fact that more than half of Canadian homebuyers are consulting with a mortgage broker at all is quite remarkable.

“I think you have some fundamental challenges there,” says mortgage veteran, Dustan Woodhouse. “(Banks) have the opportunity that we don’t have. Potential first-time homebuyers already have an existing relationship with that financial institution. So how does a broker fight that advantage?”

Woodhouse says the Internet has certainly helped given that more than 40 per cent of buyers are between 18 and 34 years of age.

“First-time homebuyers are the Internet generation,” he says. “So they’re researching and they’re coming across mortgage brokers and realizing there’s an independent agent who will work for them for free.”

To read the full report, click here.
 
18 Comments
  • John B 2015-06-10 9:35:41 AM
    Interesting that all of the current job postings on CAAMP's CMT website are for bank road reps. Have a look at it here: http://www.canadianmortgagetrends.com/canadian-mortgage-jobs
    Nice to see that CAAMP is helping the banks fill their road rep needs so they can compete with us.
    Our membership dues hard at work!
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  • Ron Butler 2015-06-10 9:42:25 AM
    CAAMP takes everyone's dues, if Bank Reps want to sign up they will take there money and banks are corporate members. Bottom line here is that banks and their sales forces are well funded, formidable competitors, mortgage brokers should quit bitching about it, get to work, give the consumer a better deal than the banks and win by offering better value.
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  • Kim 2015-06-10 9:43:46 AM
    What happened to CMHC's report that says 55% of first time homebuyers have closed using Brokers Vs banks? Where are you getting these 61%/75% numbers from?
    Post a reply