Market forces appear to be weeding out the number of Canadian mortgage brokers, according to industry news sources. Mortgage Broker News reports numbers from the Canadian Association of Accredited Mortgage Professionals (CAAMP) indicating there are 18,000 to 20,000 individuals holding mortgage broker and agent licenses.
Ontario is the most competitive market with approximately 10,000 licensed agents or brokers as compared to 6,000 in B.C. and Alberta combined, and 1,000 in Quebec. However, according to industry insider numbers, there are only 10,000 to 12,000 licensed mortgage brokers and agent nationally who are actively engaged in the industry.
These numbers have raised concerns in the industry that there are quite a number of recently licensed agents and brokers with little or no”practical, real-life training.” However, Jim Murphy, CEO of the CAAMP, reports that the expansion in numbers of brokers and agents over the past three years has “been relatively stable” over the last 12 months. Industry speculation is that a cooling housing market, rising interest rates and larger sales forces at commercial banks has effectively capped the number of agents and brokers for the near future.
Meanwhile, on the real estate front, analysts at propertyfundsworld.com report survey results that show “(n)early half of all Torontonians (43 per cent) said they would be likely to change their place of employment in order to lessen their commute. Increasing commuting times and price pressures in Toronto have boosted the attractiveness of the suburbs. Mississauga, Vaughn and Markham have been cited as the top three areas in the GTA outside where employers are likely to locate or relocate in the next three years.
Competition in the real estate and mortgage markets in the GTA mean that homebuyers should be selective in selecting an experienced, knowledgeable and well-resourced mortgage broker. Using a Toronto mortgage brokerage with experienced Mississauga, Markham and Vaughn mortgage brokers who are specialists can be key for homebuyers to finance their purchase in competitive markets.
