Recent statistics show that Canadians are choosing mortgage brokers instead of the banks, much more often these days, and that is a good thing for the consumer. Read on, and find out ‘Why’Our overall industry market share in 2000 was 17%, in 2008 it was 25%. Today it has grown to 38% representing approximately 4 of every 10 mortgages, with 44% of First Time Buyers opting to choose a mortgage broker first. It is predicted that our industry will have a 50%+ market share versus the powerful Canadian banks in the next 5 years or so.
This trend is the result of the consumer recognizing the value of the mortgage services of a mortgage broker, particularly giving them much greater choice of mortgage products and generally lower rates than the banks. The internet has also become a big factor as well in our growth, in that more and more people research the internet first before deciding on the source of mortgage financing, and with some 20,000 independent mortgage consultants offering their services across the country. So the choice of choosing a mortgage consultant versus one of the big 5 banks, is huge.
Why should you support our industry and choose a mortgage broker as opposed to your bank? Well, frankly, we could write a book on this subject, suffice to say that, if our industry were to be decimated as it was in Australia with the credit crunch in the past two or so years, mortgage brokers all but disappeared and ‘guess what’, the 4 big Australian banks jacked up interest rates, and profits soared because they no longer had any competition from ‘non bank’ lenders whom the consumer could only access via mortgage brokers. All the banks hiked their rates, believe it or not, ‘simultaneously’, claiming at the same time, that there was no ‘monopoly-like’ power. Could/would such few banks ever act together for their own benefit in this country? Well, Yes. We weren’t borne ‘yesterday’ were we?
So the moral of this story, dear readers, is that, because of our industry, there is considerable competition in the mortgage marketplace. And this is healthy very healthy. Without us there would not be any ‘non bank lenders’ for us to send your business to, to get you a better ‘deal’ and financial ‘solution’. Our ‘beloved banks’ would have a virtual monopoly. Hence our ‘great’ Canadian banks would have a ‘hey dey’ and their profits(which are already insane)ould soar to the heavens without a doubt.
Case in point: Check out this rate comparison.
Bank Rates Our Rates
1 Year Open 6.7% 6.49%
6 Mths Closed 4.45% 3.95%
1 Year Closed 3.35% 2.44%
2 Year Closed 3.60 2.89%
3 Year Closed 4.25% 2.90%
4 Year Closed 5.19% 3.54%
5 Year Closed 5.44% 3.49% WOW
7 Year Closed 6.09% 4.75 WOW
10 Year Closed 6.40 5.15% WOW
5 Year Variable 2.75% 2.3% WOW
You might be interested to know, that we also do business with the big banks, and when we do, we often get better rates from our client’s banmks, After, they have approached them first, and are not satisfied with the rate, terms, or service, they come to us.
For your next mortgage please call, ‘THE PRICE TEAM’ first for all your mortgage needs!