CMT – Another Commission Squeeze
October 19, 2012 Leave a comment
If you weren’t sure whether mortgage broker commissions are trending down, you can be sure now.
Scotiabank, the biggest participant in the broker channel, is the latest major lender – after First National and MCAP – to cut broker finder’s fees.* The bank lowered its compensation today by five basis points on 5-year terms.
“The economics of the business are changing. We’re looking at what appears to be a sustained low-rate environment,” said David Stafford, Managing Director, Real Estate Secured Lending at Scotia. “All the banks are looking at compressed margins. As long as we’re in this sustained low-rate period, there has to be a bit of give and take.”