Win/win for big bank?

Win/win for big bank?

Win/win for big bank? Following news that many lenders are fleeing the northern markets, one broker believes the latest bank to do so will benefit.

"With many lenders pulling out (of the market in Canada's North) TD is probably getting most of the business out there with or without the broker," Bud Jorgenson wrote on "This means that at the end of the day the client is either going to come to TD through a broker or walk in. If they eliminate the broker they are still keeping the client and when they do TD doesn't have to pay the broker. That sounds like a win win."

One broker -- who does a great deal of business in Northwest Territories, Yukon and Nunavut -- is questioning lender loyalty after a number of them have ceased broker network operations in the North.

Susan Zanders of Verico Zanders & Associates has been lending in Northern Canada since 1998 but is finding it more difficult to fund deals as lender partners flee from the frigid areas.

“As a broker, we started out with ten lenders up there but National Bank pulled out of the market, Firstline pulled out, RMG left and, in some cases, we had live deals (that could not be fulfilled),” Zanders told

According to Zanders, a number of other lenders have also left the market – the most recent being TD Bank.

“I emailed TD and I can’t get answers; they were the most versatile in the market,” she said. “We’re down to a very few lenders and that’s bad for the consumer.”

According to CREA’s most recent sales statistics, the Yukon (225 sales YTD) and Northwest Territories (112) have recorded the least amount of sales in Canada. Meanwhile, the province with the third least amount of sales, Prince Edward Island, has more than doubled their collective number, with 1,141 sales.

Some may argue that this low level of activity could be reason enough for lenders to leave these markets but Zanders isn’t sold. And for her, it’s a matter of loyalty.

“The refinance business is huge and not reflected in CREA’s numbers,” Zanders said. “Lenders ask for loyalty but what about the loyalty to brokers?”

Zanders estimates she has done close to $125 million of business in Northern Canada. 
  • NMH 2014-11-11 12:50:49 PM
    No doe no go thats the way the lenders work only thing they are loyal to is profit and low risk !
    Post a reply
  • Tom 2014-11-11 1:38:53 PM
    I'm sure they all take client investments, as in, GIC's, RRSP, Mutual Funds, etc. from this area!!!!
    Post a reply
  • Susan Zanders 2014-11-12 12:01:58 AM
    TD has a branch in Whitehorse. Yes, they still do mortgage business at the branch. it is just the broker channel that has been pulled. We cannot place any mortgages for properties located in Whitehorse, Dawson City, or anywhere throughout the Yukon or NWT or Nunavit with TD. If they can pull the broker channel there, then what about the smaller towns around the country? As a mortgage broker specializing in the Yukon and Territories we brought choice to the consumer and got the rates lowered. When we first started lending in the Yukon, the banks where charging clients posted rates. We introduced competition, superior service and choices. Never thought a big bank would pull the channel in the Territories. Two weeks notice in the broker kit. No more mobiles, modular homes, new construction and no mortgages anywhere in the Territories. This is very concerning to open up the idea, it they did it there, where else might they pull next? No loyalty from TD. Not even a phone call in advance to notify us.
    Post a reply