An explosive fourth quarter for two growing monolines suggests smaller non-bank lenders are increasingly the little engine that could.
MonCana’s share of broker business for the last three months of 2012 went through the roof, increasing by 868 per cent year-over-year.
For its own last quarter of 2012, Radius
Financial leaped by 125.8 per cent from the 2011 period, making for a year where it realized 155.7 per cent growth from the previous 12 months.
Radius Financial introduced its RateWise Mortgage in October, hoping its 2.94 per cent on a five-year term would entice new business, despite more restrictive prepayment allowances. These latest fourth quarter numbers from D+H seem to have proved this true.
"The Radius Financial RateWise mortgage gives brokers a competitive advantage when servicing clients," says Suzanna Stefanec, VP of national sales for Radius told MortgageBrokernews.ca. "This product offers brokers the ability to service different markets and compete on rate while still rewarding customers with mortgage privileges, this is a true value add to the Radius product line up."
Like Radius, which just expanded its reach outside the Mortgage Architects
family, MonCana is a relatively new name for most mortgage professionals.
MonCana started out of the gate strong by attracting hundreds of brokers and nearly $200 million mortgages only eight months into the channel. Upon clearing the last regulatory hurdles in September 2011, the bank signed up with 625 brokers.
With business that comes primarily from Alberta and Ontario, the Calgary-based bank dangled a 50-basis-point renewal fee on top of standard upfront compensation.