Scotia Mortgage Authority says it is now the top lender by volume in the mortgage broker space, with a market share of 19.4%.
The numbers are based on Davis + Henderson’s latest Q2 Mortgage Broker Market Share Report.
Scotia Mortgage Authority’s market share is up 4.5% year-over-year.
The lender previously in the top spot was FirstLine, the broker division of CIBC.
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Last modified: April 26, 2017
Thanks Rob, Could you possibly provide a link to the Market Share Report?
Hi Trevor,
Would love to but unfortunately Filogix doesn’t release it publicly. :(
Rob
Could this be a media spin? As in they are number 1 in a certain market so they say they are #1?
Like automobile manufactors do with fuel econonmy? they cant all be best in thier class.
Hi Jason,
SMA’s ranking is based on the volume of mortgages it has closed in the broker channel. The numbers are provided by Filogix, the technology company that processes the vast majority of mortgage broker applications in Canada. There’s not too much spin there that I can see.
Rob
With all my respect to Scotiabank, those numbers are troublesome for our industry – since when you send a deal to Scotia you can say your clients “God-bay”… and at some point in the nearest future Scotia will switch to the BMO model without saying “Thanks” to brokers or even accusing brokers for all crappie business happening at branch level.
Its strange that you would say that about Scotia; when the previous #1 lender was also a chartered bank. Branches at any bank are notoriously bad at keeping their clients which is why the broker business is able to flourish. The added value that a good broker provides cannot be matched by a bank branch or bank mortgage rep only selling 1 institutions products with little or no understanding of the competing products.
The broker business is a big market for Scotiabank,about 40% of the total portfolio.
True ,you can say “god-bay” to your client,but so far Scotiabank is the only Bnaks that support the Broker Channel !! against RBC,BMO,….and also TD Canada Trust….a good broker has to do also business with a Bank….
Some clients only care about rate and let’s face it; Scotia undercuts SMA at branch level all the time. They can wave their magic wand and waive a penalty to keep a client too. I had one case where the mortgage actually funded with Macquarie (in the lawyers trust account) but the branch pulled the deal back by waiving a 12K penalty and matching the rate. All banks do it — not just Scotia. Unless “we” as the whole broker industry, support our trailer-fee lenders, we stand a very good chance at losing a client forever.
That’s unfortunate, I believe they used to release it a couple of years ago.
Scotiabank and Firstline won’t be leaving the broker channel. They rely on it too much. TD is another story. I bet it will be gone in a year. TD’s broker rates are horrible and its turnaround times are attrocious in my experience.
Actually Deon, TD`s preferred broker rate is right inline with the market and at this moment better than Scotia`s at least on 5 yr fixed.
So Scotia has a market share of 19.4% in the broker space. What are the market shares for other lenders?
SheL
I also have to point out that on our version of Filogix, that even when a deal is ‘approved’ with SMA, it still shows as in progress in Filogix. One must manually ‘approve’ the deal if it gets approved, and then close the deal once done. In the numbers provided by D & H does it take into consideration all those files that are left “in progress” as they were declined or the broker went to a different lender and didn’t need to mark the status in filogix for the Scotia app?
My understanding is that the D&H report is based on funded volume.
Mike: I heard similar stories from other agents at our office about sending their deals to Scotia. I never sent a deal over there and probably never would. Same goes for TD. Just too much bull*&%$ from them. I’d rather send business to more broker-friendly lenders. Besides, so far neither Scotia or TD have given me any incentive to send deals over there — not on the rates, not on the service, and the fact that a $30,000 a year personal banker can steal a client on renewal by waiving a magic wand is the real deal breaker for me.
How are they supporting the broker channel?
1) If the client already spoke to an “adviser” at the bank before coming to you, you won’t be paid for the deal if it goes through the same institution.
2) They intentionally resort to a variety of cheap tricks to steal a client and inflict damage on the broker that delivered the client to them (as Mike noted below).
3) Why work with a lender that has two hands in the cookie jar? On one hand, they claim to support the brokers, on the other hand they have an active sales force that’s undermining the broker channel by having the ability to offer lower rates than what their top brokers are offering?
4) Other banks are still doing through the broker channel. BMO, for example, owns 40% of MCAP, which is one of the most broker-friendly lenders out there. RBC is one of main wholesalers for Merix which is currently offering the most attractive rates. So even though these banks don’t do business directly with brokers, they do have some exposure to the broker channel. And let’s not forget that some institutions do Alt-A/sub-prime exclusively through the broker channel (i.e. Firstline Access and TDFS).
“The lender previously in the top spot was FirstLine”
Maybe if Firstline was competitive they wouldn’t have fallen from their perch. Take variable rates for example. Firstline has been out of the market on variable rates for months and Scotia has been kicking their butt. Yet Firstline still expects brokers to send them business and meet their status targets.