HSBC Bank Canada announced today that they will no longer be originating mortgages via brokers. This is effective immediately.
Along with this, they will also be winding down and closing their outside mortgage sales force department.
All future mortgage origination will be done via their branch network.
Although HSBC has never been a major player in the broker market this a big blow to the community. As they operate on a global scale HSBC was a great lender for foreign clients buying in Canada. This was a niche that they were very good at. With this source now gone for brokers, and with foreign buyers increasing, it is hoped that another lender will step up and fill the void.
