Breaking news for the broker channel – CIBC has sold Mortgage Centre Canada, their mortgage broker franchisor, to Dominion Lending Centres. The sale means CIBC has stepped away from the broker business completely, an exit that started with the shutdown of FirstLine Mortgages, their internal brokerage arm, last June. Prior to its shutdown, FirstLine had been the largest mortgage brokerage in Canada.
An Attempt to Connect to Consumers
The acquisition is a big boon for Dominion, as Mortgage Centre’s broker network and locations are expansive, given that the organization’s brokers stick around after the buy. The move is allegedly part of CIBC’s plan to move more mortgage business to their in-house reps, and strengthen their relationships with mortgage customers.
What About Consumer Choice?
Mortgage brokers provide invaluable service for home buyers by researching and shopping the mortgage market on their behalf. Brokers often have access to rates from a wide variety of lenders – but CIBC rates are likely now off limits. Interested consumers may now only have the option of approaching the bank directly and work with one of their in-house mortgage professionals to sign a CIBC rate.