The move by channel lenders to take on “Schedule 1 Bank” status may continue to build, with the head of one trust company sharing his own perceptions with MortgageBrokerNews.ca.
The move by channel lenders to take on “Schedule 1 Bank” status may continue to build, with the head of one trust company sharing his own perceptions with MortgageBrokerNews.ca.
“We have given it some thought; more thought lately,” says Home Trust president Martin Reid. “We’re in a dwindling group of lenders, with fewer and fewer trust companies out there and everyone making the move to full bank status.”
Canadian First Financial was the latest channel player to announce its newly acquired banking status at noon Friday. That follows a similar move by Equitable Trust, now Equitable Bank, effective July 1.
For Reid, he expects more discussions on the subject to be had at upcoming Home Trust board meetings.
“I wouldn’t be surprised if we apply, if we apply sometime soon,” he told MortgageBrokerNews.ca. “I will bring it up at our next board meeting.”
Reid understands the move by financial institutions to become a Schedule 1 bank, as Canadians seem more predisposed to banks, finding a greater comfort and trust level historically.
“Banks seem to be better understood by the customer,” he says. “The older generation in particular seem more comfortable.”
While many in the broker channel are speculating about who will be next to make the move to bank, Reid does have one prediction on another popular topic: mortgage rates.
“Everybody’s watching the movement in rate,” he says, “but I’m not convinced it will be a fast move upwards. I think we’re in a better place in the housing market – certainly the Vancouver market is showing some pretty good activity. I believe we will see a slow and measured rise in interest rates.”
