Brokers actually grew market share during this year's hyper-competitive rate wars, according to CAAMP's fall market report, although that didn't come at expense of the banks.
“Homeowners with mortgages were asked ‘when you took out the mortgage that you currently have on your residence, which of the following mortgage professionals did you consult with?’” writes CAAMP Chief Economist Will Dunning in the November report, drawing on a online survey of 2,000 Canadians, conducted late last month. “The 2011 data show a small shift towards mortgage brokers (to 27 per cent versus 25 per cent a year earlier).”
Those market share gains appear to have been taken from credit unions and other originators and not from the banks themselves, which maintained a 55 per cent cut of the action.
The survey, conducted by independent pollster Maritz, allow delved more deeply, breaking down broker market share for new mortgages as well that for renewals and refinancing. With new originations, 52 per cent ultimately used a bank, with 32 per cent relying on a mortgage professional to arrange the mortgage. Broker cut falls to 19 per cent for refis and renewals, compared to the banks’ 67 per cent.
The numbers are essentially unchanged from Maritz’s spring reading of consumer trends, with brokers holding that same overall market share of 27 per cent.
Still, the October survey suggests brokers have largely held their own against the banks in what industry veterans are calling the most competitive year in a decade.
A large part of that has been the Big Six’s move to beef up their road rep numbers and to use mortgages as a loss leader in order to win new clients for their expanding suite of services, charge brokers.
Mortgage professionals have also expressed concerns about a possible increase in the number of clients consulting with brokers only to win commitments that then allow them to get better rates from the banks. This fall’s report may challenge that perception.
While 45 per cent of homeowners said they consulted a mortgage broker before signing off on the biggest purchase of their lives, sometime in the last 12 months, that is, in fact, down from April’s 55 per cent.