National Bank Exits Broker Chanel

[TimLacroix]

National Bank announced Dec 1 it will be closing their internal broker channel effective December 9th.

Announcement (http://business.financialpost.com/news/fp-street/national-bank-exiting-direct-broker-channel-leaving-only-td-and-scotiabank)

National Bank has outsourced their origination to MERIX Financial (http://www.merixfinancial.com/) to leverage their solid industry reputation in the mortgage broker channel as well as all underwriting and servicing.

MERIX Financial is one of the top 10 Mortgage Lending Institutions in Canada.

More info to follow... it is too early too tell whether or not some of their products will be offered through MERIX or not. It will take the next 6-12 months to see how these changes and the mortgage rule changes play out.

[ExtraSlow]

So they aren't marketing mortgages directly any more?

[TimLacroix]

Originally posted by ExtraSlow
So they aren't marketing mortgages directly any more?

That has not been confirmed but good question. Let me connect with them to confirm whether their branches will still be doing mortgages. Cheers.

[Xtrema]

Originally posted by ExtraSlow
So they aren't marketing mortgages directly any more?


Rob McLister, founder of ratespy.com, said it’s never positive when the industry loses a major bank’s product. “For example, National Bank’s highly popular all-in-one HELOC (home equity line of credit) will only be available from the bank,” he said.

Sounds like they are not playing the broker game. If you want their products, you just have to talk to them directly.

So seemingly, brokers will less likely to get you products from banks going forward.

[TimLacroix]

Originally posted by Xtrema




Sounds like they are not playing the broker game. If you want their products, you just have to talk to them directly.

So seemingly, brokers will less likely to get you products from banks going forward.

Brokers will still have access to bank mortgage products. The National Bank products are going to be available directly and for NOW not through the broker channel.

The All-In-One product was popular. The broker channel still had comparable products through various other lenders including:
Scotiabank
Manulife
ATB
Servus CU
MCAP

This is not a significant loss as HELOC business is very small compared to the number of mortgage transactions that occur each year. The availability is still there and in many cases, will be cheaper as National Bank charged a monthly fee for each product in the All-In-One.