The first quarter of 2019 found some leaders losing ground in the mortgage broker-mortgage lender market share.
As reported by Canadian Mortgage Trends, “the top five lenders reportedly accounted for the lowest combined market share in two years.”
In 2019 Q1, Scotiabank, MCAP/RMP, First National, TD Canada Trust, and Home Trust Company took the top five positions, respectively. However, Scotiabank, MCAP/RMG, First National, and TD Canada Trust all fell compared to a year-over-year change.
Home Trust Company, Street Capital, Equitable Bank, and MERIX Financial, on the other hand, all rose on a year-over-year basis.
Canadian Mortgage Trends noted that Equitable Bank achieved its highest market share ever. CEO Andrew Moor was quoted as saying that alternative and prime single-family mortgages grew 15% and 48% respectively last quarter.
By province, Alberta was up 2.1% year-over-year, Ontario increased by 2.0%., and B.C. year-over-year volume fell by 2.7%.
Both lenders and brokers are using more technology to increase margins and agility and are focusing on deals that are more likely to close vs. those that that will not.
A great way to do this is to find more information sooner — including the property value.
One example of how to capture this data as quickly as possible in the application phase is through an automated valuation model (AVM). AVMs enable lenders and brokers to validate the quality of a deal faster, which can stop bad deals from progressing further than they should. By knowing more upfront, lenders and brokers alike can rely on accurate data vs. guesswork, and ultimately close more deals
Technology like this can level the playing field. It provides mortgage brokers with the ability to be more competitive while also strengthening alignment with their lenders because of higher quality, better underwritten deals.
Learn more about AVMs from Purview today and how both brokers and lenders can benefit from incorporating them into the mortgage application process. Call us at 1-855-787-8439 or visit www.purview.ca.
Purview is just one of Teranet’s Financial Services Solutions; stay tuned for our upcoming portfolio unveiling!