HSBC Closes Doors to Mortgage Brokers

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After a move to deal only with its top 100 brokers was initiated last year, HSBC Canada has decided to end even those arrangements and handle mortgages solely online or over the phone directly through their own employees. The bank will, however, honour all agreements with mortgage brokers currently in existence.

“We plan to concentrate on growing our business through our network of over 140 bank branches,” HSBC Bank Canada spokeswoman Sharon Wilks said.

Two years ago BMO decided to make the same move. The result appears to be a loss in market share but a gain in profit margins.

Most likely, mortgage brokers will not be overly affected by this move. HSBC mortgage products were often attributed lengthy turnaround times, and only put forward occasional rate promotions.

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