’s annual fall mortgage industry report indicates that broker market share has fallen on a year-over-year basis, a large chunk of which has gone to the big banks.
“For all current mortgages on homes that were purchased during 2014 up to the time of the survey, 61 per cent were obtained from a bank,” the official report states. “Mortgage brokers had a 31 per cent share. Credit unions were the source for six per cent of these mortgages, followed by two per cent from life insurance or trust companies.”
These numbers represent a significant change from the mortgage origination breakdown of just a year ago. In 2013, up until the date of last year’s publication, banks accounted for 42 per cent of mortgage market share, while brokers accounted for 40 per cent.
This year’s report also includes the percentage of mortgages sourced through a credit union (6 per cent) and trust or life insurance companies (2 per cent).
It seems that big bank advertising and brand loyalty prevailed in 2014, as 76 per cent of homebuyers who purchased in 2014 consulted a mortgage professional within a bank. Conversely only 47 per cent of consumers consulted a mortgage broker.
The report also investigated the breakdown of fixed versus variable rates among current mortgage holders.
69 per cent of mortgage holders (3.9 million) currently have a fixed rate, while 24 (1.35 million) per cent have a variable rate; interesting stats considering the record-low rates that have made variable rates an attractive option for homebuyers.