One big bank is crediting its employee financing campaign with helping to drive impressive mortgage growth.
The biggest of the big banks has been borrowing an advertising initiative from the auto industry to drive mortgage business for years, and it crediting that campaign for helping to grow that segment.
“The simplicity of our employee pricing campaign coupled with employee referrals helped drive sales,” David McKay, president and CEO said during the company Q3 earnings conference call.
“This quarter we also saw a client switch out of unsecured lines of credit into mortgage products to take advantage of lower rates which also contributed to mortgage growth.”
RBC reported record quarterly earnings of 5% last quarter, crediting its mortgage business – which saw that balance grow 6% year-over-year -- as one of the main drivers.
And its employee pricing campaign, coupled with seasonality and record-low rates, helped achieve those impressive gains.
And RBC was not the only bank to enjoy impressive mortgage business growth in Q3.
’s own residential mortgage portfolio grew 9% year-over-year.
“Consumer loans increased by 5%, primarily due to home equity lines of credit and personal loans,” National Bank
writes. “Rising 7%, residential mortgages also grew since October 31, 2014.”
Not to be left out, BMO funded over $104 billion in residential mortgages during the third quarter of this year, and the bank expects its mortgage business to show higher percentage growth than its consumer credit lines for the rest of the year.
“Growth in residential mortgages is expected to remain steady near 5% this year, while consumer credit should grow close to 3%,” BMO writes in its Q3 investor’s report.
Meanwhile, TD Bank – the latest bank to reveal its quarterly earnings – boasted 5.8% year-over-year percentage growth for its mortgage portfolio. The company funded $180 billion in mortgages last quarter.