According to a report from Mortgage Professionals Canada (MPC), the market share for brokers increased to 63% from 59% the previous year. This increase was due largely to the continued strength of the Canadian economy and the low mortgage rates offered by lenders.
The report highlights that the broker-lender market share has grown significantly since 2009, when it was just 53%. This is an indication of the growing popularity of brokers among Canadians looking to access financing. The report also noted that broker lenders were the main source of finance for more than 80% of purchases and refinances in the first half of 2012.
MPC also reported that the mortgage origination rate has increased to 5.9% in the second quarter of 2012, compared to 4.7% in 2011. This suggests that Canadians are increasingly looking toward brokers to obtain financing.
In addition, the report also revealed that the average loan size for broker-lenders has decreased slightly over the past two years. Although this may indicate a slight cooling off of the market, it could also be a sign of Canadians opting for longer loans in order to take advantage of lower interest rates.
Overall, the strong performance of broker lenders in the second quarter of 2012 speaks to the overall health of the Canadian economy and the continuing popularity of brokers among Canadian borrowers. With mortgage rates at record lows, borrowers are taking advantage of broker lenders to secure financing for their purchases and refinances. It is also possible that Canadians may be opting for longer-term financing in order to keep their monthly payments low.
The mortgage market in Canada continues to be a competitive one and brokers are essential to helping Canadians secure the best possible terms for their financing needs. The market share of broker lenders has grown significantly since 2009, and this growth reflects the increasing popularity of brokers among Canadians. Furthermore, the average loan size has decreased slightly in recent years, which may be a sign of Canadians opting for longer-term financing. As long as the economy remains strong and mortgage rates remain low, it is likely that the popularity of broker lenders will continue to increase.
This article was contributed on Jul 12, 2023