Street Capital is among those offering brokers an additional 10 basis points on some fixed mortgages, the move helping build an increasingly competitive and lucrative market.
Effective, Jan. 22, the monoline is offering an "extra 10 bps commission on 5-year fixed-rate high-ratio, paying up to 115 bps," reads a communication recently sent to its broker partners.
That "up to" depends on the plan, with the Loyalty Program Upfront model sitting at the top end of the compensation scale. All deals must be CMHC-insured and represent new business, says Street. They are alos subject to other requirements.
Street's move runs parellel to steps first taken by MCAP and followed by First National to sweeten the pot for brokers, now fighting to maintain, if not grow, originations in a slower market.
The extra compensation also comes as some mortgage professionals scout about for an alternative to ING, which will formally leaves the channel next month.
The heightened competition this time around is an about-face of sorts, say some brokers, from what happened when FirstLine packed its bags last year and some other lenders moved to cut finder's fees.