The results are in, and as expected, big lenders, with the conspicuous exception of TD, have successfully divvied up FirstLine’s spoils.
The 2012 Q2 lender market share report indicates that broker volumes jumped by 8.2 per cent for the period over 2011, but more importantly for the channel’s biggest lenders are individual gains in market share.
Scotiabank, First National, MCAP and Street Capital are among the most chuffed. Overall, Scotia leads the pack posting 20.2 per cent market share, with a 2.6 percentage-point rise year-over year.
Not so for TD, with its share of broker business falling 5.7 pps, year over year, to come in at 7.8 per cent.
Also worth noting is that First National saw it originations skyrocket in Q2 rising 48 per cent or $4.4 billion from $3.0 billion by the end of June.
Here’s a roundup of the top five market share winners:
Scotiabank – 20.2 per cent market share, +2.2 pps YOY
First National – 18.9 per cent market share, +6.1 pps, YOY
TD – 7.8 per cent market share, -5.7 pps, YOY
Street Capital – 7.7 per cent market share , +1.5 pps, YOY
MCAP- 7.7 per cent market share, +1.5 pps, YOY
A couple of months ago, MortgageBrokerNews.ca reported that lenders have already started to court brokers with well-established ties to FirstLine soon after CIBC began winding down the company`s operations.
At least one seasoned broker has rightly foreseen that other lenders would divvy up FirstLine’s market share. This latest D+H report suggests that process started in the second quarter, before the company closed down July 31 this year.
“Scotia, First National, Street and MCAP should benefit equally from this,” said Ron Butler, of VERICO Butler Mortgage Inc. “It is very unlikely that one of the four would instantly take over the bulk of the FirstLine share.”
The rundown of market share for other lenders is as follows:
Home Trust – 5.6 per cent, +0.8 pps, YOY
National Bank of Canada – 4.5 per cent, +0.3 pps, YOY
ING Direct – 4.1 per cent, +0.3 pps, YOY
FirstLine – 4. 0 per cent, -10.5 pps, YOY
Merix Financial – 2.9 per cent, +0.1 pps, YOY