TD: LTVs for Alberta soar above Ontario, B.C.

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TD's fourth quarter saw the average loan-to-value for Alberta outpaced the rest of the country, as brokers helped the bank pull in $73 billion in new business..

That mortgage growth for the three months ended Sept. 31 helped lead the bank to an overall increase in net income of $1.52 billion – up from $946 million reported for the same quarter in 2011.

Mortgage lending at the bank continued to outpace analyst projections, with the bank showing increased willingness to increase LTVs on those loans as competition grew.

While the average LTV in Ontario remained at 50 per cent, it climbed to 57 for both Alberta and Quebec. B.C., in fact, held steady at 48 per cent, with the other provinces recording a modest one percentage point climb, year over year.

The growing divide between underwriting practices in Alberta and that in B.C. and Ontario may speak to the difference in home prices, but also to the economic growth expected for Alberta.

Brokers in that province are already anticipating a significant spike in the number of clients looking for no-money-down loans and mortgage professionals from across the country are increasingly applying for licensing in Alberta – a way of capitalizing on that any resurgent activity there.

Just over 100 Ontario brokers have now asked FSCO to prepare the necessary paperwork to present to regulators in Alberta, a representative of the Financial Services Commission of Ontario told

That number dwarfs that for Ontario brokers looking for the same certification letters to present to industry regulators in B.C. Less than five mortgage professionals have made that request.

Broker-saturated B.C. isn’t the only market being snubbed by brokers looking to grow their books by expanding into new markets. Ontario, itself considered a province over-populated with mortgage professionals, has attracted only about seven applications from brokers in other provinces since recent changes to the Agreement on Internal Trade kicked in July 1.

Those amendments governing the way provinces trade and deal with each other have made it easier for individuals already licensed in Ontario, British Columbia, Alberta, Saskatchewan, Manitoba or Québec to win the equivalent licensing in any of those other provinces without in fact having to meet new education and experience requirements.

Bullishness on Alberta is also evident in TD’s higher LTV numbers, an underwriting decision likely supported by the province’s jobless numbers – on average 3 points lower than the national average.

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