According to the 2017 Mortgage Consumer Survey done by the Canada Mortgage & Housing Corporation, mortgage brokers are enjoying a bigger share of the renewal mortgage market. The broker’s market share has grown by 9% not only in Bradford, but the rest of country as well. It went up to 35% in 2017 from 26% in 2016.
Referrals and relationships play a very significant role in the mortgage lending business. This is according to CMHC VP for Client Relationship Management Nathalie Fredette. Mortgage professionals can use the results of the survey to better manage their businesses by providing their customers with improved services overall.
The mortgage broker share in the refinance and recent buyers markets continued to remain stable at 40% and 44% respectively. The figures are based on reports released by Crown Corporation.
It is worth mentioning that first-time home buyers have continued to opt for the services of local mortgage brokers, instead of their own banks. Currently, brokers have a good hold of the market segment at 55%.\
One interesting result is the tight split between buyers who put more premium on getting the best deal or rate over valuable recommendations and advice, 58% versus 52%.
Area Where Brokers Outdid Banks
In terms of broker experience, a significant chunk of the clients (72%) confirmed they were happy about the services they got. One particular area where brokers did much better than banks is in communicating with their clients after the funding.
The CMHC report was based on survey responses from 3002 participants comprising of 3002 consumers who have recently taken out a mortgage. Results showed that 54% of all clients who hired the services of a mortgage broker were contacted by their respective brokers after the transaction. In contrast, 31% of the respondents said that follow up communication was initiated by the lenders.
Area Where Brokers Can Improve On
According to the report brokers need to improve in one critical area, and that is in the quality of information they provide their clients.
In retrospect many of the respondents said they wished they were armed with more information on different crucial aspects. This was mentioned by CMHC in the report.
Following are the topics where clients said they needed more information on:
Interest rates (53% of broker clients, and 24% of lender clients)
Types of mortgages (46% of broker clients, and 25% of lender clients)
Tools that can help manage their mortgage (46% of broker clients, and 27% of lender clients
What to do when presented with financial issues (45% of broker clients, and 26% of lender clients)
Quick Facts about the 2017 CMHC Survey
Survey was conducted in March 2017. It has been done since 1999.
3002 were surveyed; participants are main decision makers in their households who had taken a mortgage within the last 12 months.
65% availed of mortgage renewal.
15% availed of refinancing.
20% bought a home with mortgage financing.
The CMHC Survey is the most comprehensive and biggest of its kind in the country.