Dec 2, 2016, 12:04 PM by Mortgage Professionals Canada

Mortgage Professionals Canada Responds to National Bank’s Withdrawal from Broker Channel

We are disappointed with the December 1 announcement that National Bank will withdraw its brand from the mortgage broker channel in Canada. In its statement, National Bank states it will, however, continue to fund mortgages through Paradigm Quest Inc.

“The timing of this announcement is very unfortunate, especially given that the new federal changes to mortgage insurance and eligibility are just coming into force,” said Paul Taylor, President and CEO. “The impact of these changes on the marketplace are still being determined, but in times of increased uncertainty and technical changes of this nature, consumers will be more inclined to seek the expert advice they will receive when working with a mortgage broker.”

We believe now more than ever, the mortgage broker channel is poised to grow, so the withdrawal by National Bank is an ill-timed move. The continued funding of broker-originated loans through Paradigm Quest Inc. is good news, however, National Bank will miss out on their branding value in the market. Additionally, National Bank offered some specific products through brokers that will discontinue.

As an association whose members promote choice to Canadian consumers, the reduction of available options always has an impact on overall competition. That said, our members are innovative, resilient and are always working in the best interest of the Canadian mortgage consumer. It is this focus that will ensure the broker channel remains strong, vibrant and competitive long into the future.