CAAMP’s new spring report is the second this month to suggest brokers are growing their share of renewals against an onslaught of bank competition, with mortgage professionals handling 22 per cent of those transactions last year.
“That figure represents a very good news story for brokers in that they’ve been steadily growing not only their share of new mortgages but renewals and refinances,” CAAMP president Jim Murphy told MortgageBrokerNews.ca. “That growth suggests that brokers have been focused on their databases and staying connected to past clients, allowing them to move beyond new mortgages.”
According to the report “Confidence in the Canadian Mortgage Market,” released Wednesday, some 22 per cent of respondents who renewed or refinanced an existing mortgage in 2011 and first four months of 2012 obtained it through a broker. That’s up from the 19 per cent who did the same during the year-ago period.
Brokers were also rewarded for their efforts in terms of growing their share of new mortgages, says the report.
“For new mortgages, 50 per cent were obtained from a bank, 31 per cent from a mortgage broker, and 19 per cent were obtained from other types of mortgage representatives,” reads the CAAMP report.
That, too, represents progress compared to the year-ago period when brokers claimed 27 per cent of new mortgage transactions.
Data for this year’s report was obtained from online survey of 2,000 Canadians, including 800 homeowners with mortgages. It was conducted by Maritz Research and adds weight to the findings of a CMHC report issued last week.
It suggests some 27 per cent of mortgage consumers used a mortgage broker to arrange their mortgage, a 4 per cent point rise over last year’s 23 per cent.
“In the past year, brokers have made further inroads among mortgage renewers, with one in five relying on a broker,” reads the report. “Key reasons for using a broker continue to be getting the best rate or deal, and receiving excellent service.”
Brokers may, in fact, have had some help in moving the bar forward, with the current low-interest-rate environment encouraging renewing and refi consumers to seek out the professional guidance of independent mortgage professionals as a way of securing the best rate.
That strategy appears to have worked.
“The average mortgage rate in 2011 is 3.64 per cent,” reads the CAAMP report, authored by economist Will Dunning, “down from 4.04 per cent a year earlier.
“For mortgages on homes purchased recently, the average rate is 3.48 per cent.”
Click here to access the full report.