CMT – Another Commission Squeeze

If you weren’t sure whether mortgage broker commissions are trending down, you can be sure now.Downtrend

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.”

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