New evidence points to an increase in market share, following CAAMP
’s less optimistic numbers released in the fall.
“Mortgage broker market share is trending upwards for most market segments. This is particularly evident among repeat buyers where market share has increased from 32 per cent in 2012 to 42 per cent in 2015,” CMHC wrote in its recently released Mortgage Consumer Survey. “Over this time period broker share has also increased among First-time buyers (48 per cent to 55 per cent) and refinancers (27 per cent to 33 per cent). Among renewers, broker share has remained stable at around 21 per cent.”
The Crown Corporation conducted a survey of 3,510 mortgage consumers in March – all of whom had attained a mortgage within the prior 12 months.
Of those surveyed, the vast majority (79 per cent) were satisfied with their broker experience; 47 per cent “totally agreed” they were satisfied and 32 per cent “somewhat agreed” they were satisfied.
It’s positive news that contradicts the national broker association’s data.
According to CAAMP’s annual mortgage industry report, released in November, mortgage broker share has shrunk, year over year, with much of that lost business being absorbed by the big banks.
For all mortgages purchased up until the release of the survey, 61 per cent were funded by a bank. Meanwhile, brokers only accounted for 31 per cent market share.
Of course, it should be noted that CMHC’s data is more recent.
And market share is a hot topic for brokers these days.
Some 52.38 per cent of brokers who took part in CMP’s Broker Sentiment Poll admitted to worrying about shrinking market share, which isn’t surprising considering the sobering statistics about which industry players own most of the country’s mortgage business.