The titans of the broker business stayed on top in 2015.
Scotiabank and First National have been the #1 and #2 lenders in our space for 18 straight quarters. In fact, the last time they weren’t first and second, FirstLine was in business.
The only way their dominance in the broker market could possibly be challenged near-term is if they unexpectedly pulled back from the channel, and don’t bet on that.
Here’s a look at the reported market share for all top 10 lenders in the broker segment, as of fourth quarter 2015…
| Rank | Lender | Market Share* | 12 Mo Change |
| 1 | Scotiabank | 17.0% | +140 bps |
| 2 | First National | 13.9% | -50 bps |
| 3 | Home Trust | 8.5% | -70 bps |
| 4 | Street Capital | 8.1% | -200 bps |
| 5 | TD Canada Trust | 7.9% | +10 bps |
| 6 | MCAP | 7.5% | -50 bps |
| 7 | Merix Financial | 7.4% | +180 bps |
| 8 | B2B Bank | 4.5% | +260 bps |
| 9 | Equitable Bank | 4.3% | +0 bps |
| 10 | National Bank | 4.2% | -100 bps |
Quick takes:
- Q4 broker channel volumes rose 6.2% in Q4 2015.
- B2B Bank’s near-prime product offerings and 2014 VERICO partnership contributed to its major share gains in the last 12 months.
- Merix Financial posted record share, helped in part by strong performance from its Lendwise brand. A few years ago Merix wasn’t even in the top 10, with market penetration only in the 2% range.
- Street Capital shed two points of share y/y. It seems to be operating more conservatively in the lead-up to its OSFI bank licence.
- Outside the top 10, credit unions are making a move. Meridian Credit Union moved into the #12 spot with 1% share. That might not sound like much, but its volumes were up almost 500% year-over-year. In B.C., Coast Capital Savings grew 127% y/y.
- Provincially, B.C. had the biggest y/y gain in submission volume, up 4%. Alberta posted the biggest drop, down almost 3% courtesy of depressed oil prices.
- Data Source: D+H puts out a terrific non-public report called Lender Insights, which compiles lender market share data in the mortgage broker industry. We receive data from that report via third-party sources and have quoted it here. The data above is not confirmed, but is believed reliable. Note: These market share figures do not count MorWeb volumes (D+H’s smaller competitor) and leave out a few lenders who D+H doesn’t report, like CMLS Financial.
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Last modified: March 27, 2016
