An ultracompetitive market has emerged in 2025 as brokers and banks battle for purchase and renewal clients
Uncertainty about the economy and labour market fears are keeping plenty of would-be borrowers on the sidelines in Canada’s mortgage market – and that’ s leading to fierce competition between brokers and banks for both renewal and purchase business.
A hoped-for market resurgence has failed to materialize in 2025 so far, thanks mainly to the chaotic trade war launched by US president Donald Trump earlier this year and the prospect of a sharp contraction in Canada’s economy as a result.
While purchase activity remains sluggish, scores of mortgages are coming up for renewal this year and next, with leading banks taking a combative approach as they bid to snag business and attract or retain clients.
That means a hypercompetitive rate environment as Canada’s banking giants bring down the lowest rate they can offer clients at renewal time, although Vancouver-based broker Anthony Zhang (pictured top) of DLC Clear Trust Mortgages highlighted other ways brokers can win out over banks.
“Some big banks offer very low interest rates for promotion and we feel the competition every day, especially with the bigger banks,” he said. “It is what it is. They want business and they definitely lower the rate.
“It’s something that we can’t compete with, rate. So for myself, I tend to be more service-oriented as a broker since we work with the client from day one and provide more information customized for the client – as well as focusing on the response time.”
Where brokers have the upper hand over banks
The ability of brokers to deliver a faster turnaround for clients is a key strength compared with the banking space, according to Zhang, while the tailored solutions they can offer are especially important in the current challenging climate.
“I do manage to have a short turnaround time for the client – especially when the client is doing a resale purchase with a subject removal period,” he said. “I’m focusing on the experience and the service that the bank may not be able to provide and doing more customized service. That’s something I’m looking at for now.”
Brokers trying to go toe-to-toe with banks on rates will likely lose that battle, Zhang said – and he underlined the importance of communicating to borrowers that the lowest rate is not necessarily the only factor to consider in their choice of mortgage.
Thousands of Canadian homeowners are tightening budgets as mortgage renewals loom with higher payments. A TD Bank survey shows 73% plan to cut spending, and nearly half expect increased payments. https://t.co/uMzLRO0WCh
— Canadian Mortgage Professional Magazine (@CMPmagazine) June 17, 2025
Putting the service element front and centre has proven a winning formula in eking out business even in a difficult market.
“I feel I do lose some business to the bank because of rate,” he said, “but the majority of the time, the client does appreciate what I provide and what I control – the turnaround time.
"So it makes their homebuying process smooth, makes the renewal process smooth, and the client does appreciate that. I feel like there’s competition there, but we do have our niche. We have something that we can focus on to make our business OK.”
Brokers taking strategic approach to renewal war
While the ability of the banking giants to offer the lowest rates is nothing new, it’s been a key strategy as they bid to retain clients at renewal time throughout this year.
Even in cases where it’s clear a borrower will gravitate towards a bank for business, Zhang said it’s sometimes in the broker’s best interest to help them along that path because of the chance that the client will keep them in mind for future deals.
“We do hear that some [bank] rates are very, very low on the promotion side if they really want to keep the client,” he said. “That’s something that we face challenges on. The majority of the time, when people come to renewal, I do encourage them to see what rates the banks can currently offer.
“I know that when some banks want to keep the client, they can offer some rate that even the mortgage specialist in the bank doesn’t have access to. So that’s the approach I’m taking – I’m trying to help the client. Even though I don’t get the business, I try to be the consultant for the client because there might be some business that they’ll offer us in the future.”
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