Brokers are concerned about shrinking market share, but they aren’t intent to sit idly by without putting up a fight. We spoke to a number of industry players to get their take on what the industry can do to win back its piece of the pie.
Some 52.38 per cent of brokers who took part in CMP’s Broker Sentiment Poll admitted to worrying about shrinking market share, which isn’t surprising considering the sobering statistics about which industry players own most of the country’s mortgage business.
According to CAAMP
’s annual mortgage industry report, released in November, mortgage broker share has shrunk, year over year, with much of that lost business being absorbed by the big banks.
For all mortgages purchased up until the release of the survey, 61 per cent were funded by a bank. Meanwhile, brokers only accounted for 31 per cent market share.
Below are a number of strategies put forth by brokers who participated in the annual Sentiment Poll.
“I believe communication is very important in order to … educate (consumers) about the broker community, so they understand what a mortgage is and the benefits they can bring to the public. This is the personal, hands-on service they will receive from the broker community.”
“Give clients questions that their banker won’t know how to answer, but any broker would: ‘What are the top three rates right now?’ ‘I’m self-employed – how do you support me?’”
Help from lenders
“I believe non-bank lenders need to improve their funding/closing habits to make them equal to, if not better than, the banks’ requirements.”
“More advertising (on TV/social media, and more notifications letting consumers know who the bad guys are who are not licensed under FSCO.”
“Collaborative marketing campaigns among national associations.”
“Lobby the government to level the playing field. When banks can claim an existing relationship means different rules, it’s unfair to brokers and, in the long run, injurious to (customers).”
Do you have your own ideas about how the mortgage industry can win back market share? Share them in the comments section below.