Good News For The Canadian Mortgage Market
November 1, 2010 § Leave a comment
Deloitte released their latest mortgage market report “Winning Strategies In The Brokered Market Place” in mid-October. It provided an overview of the evolution of Canadian mortgage brokers from a “last resort” to a “go-to” for many consumers.
It’s interesting to see that the Canadian broker channel in no way reflects that of our U.S. counterpart. In the 2006 the U.S. brokers originated 65% of mortgages. That numbers tanked to only 15% in 2010.
The reasons for this plummet has been discussed and talked about for two years now, and Canada’s legislation has taken measures to insure that the industry is highly regulated in order to prevent such an event from reoccurring.
As for Canadian brokers – they have enjoyed a increase from 23% of mortgage origination in 2003 to 38% in 2009. Due in part to this increase of broker presence, the Big 5 banks are forced to compete with smaller mortgage financing companies. In other words, the balance of power has shifted from financial institutions to the mortgage consumer.
Now more than ever Canadians have a wider selection when looking at mortgage options. Between mortgage brokers, online sources, bank branches and mobile mortgage specialists, consumers can expect a more customer-friendly service and increased product offerings.
Individuals who were previously faced with very few options due to their circumstances such as new immigrants, the self-employed and those with credit challenges are especially benefiting from the new found access to specialized lending services that brokers can provide.