There's a lot of money to go around in Canada's mortgage market -- more than $500 billion, according to recent estimates. Although the housing market is expected to cool from the record-setting pace of 2003, next year's mortgage market will produce about $40 billion in new mortgages, according to Patricia Aresnault of Clayton Research in Toronto.

Aresnault told a recent gathering of the Canadian Institute of Mortgage Brokers and Lenders (CIMBL) that growth in Canada's mortgage market has more than doubled since the 1980s, and will continue to climb. She says about one-in-ten current mortgage holders plans to refinance their loans in the next 12 months, mostly to pay for renovation work or to help consolidate their debts.

She also told the mortgage brokers that niche markets, such as financing vacation homes and investment properties, are on the rise. She says about one in 13 Canadian households currently owns a vacation home, and the demographics of the aging population indicate that the market will grow in the next few years. About one in 10 households already owns a rental property, she says, representing another mortgage niche for brokers.

An annual survey conducted for CIMBL by Canada Mortgage and Housing Corp. (CMHC) shows that mortgage brokers have more market share than at any time during the last five years. Brokers currently own 26 per cent of the market, up from 21 per cent last year. It's a significant jump from when the first survey was taken in 1999, when mortgage brokers had just 14 per cent market share.

Most Canadians are still loyal to their current lenders, with more than 60 per cent of home buyers and 90 per cent of those renewing mortgages opting to stick with their current financial institutions.

But the survey says that 30 per cent of first-time buyers reported using a mortgage broker during the last year, and 58 per cent of first-time buyers are using the Internet as a source of mortgage-related information, up from 44 per cent in 2002. That gives mortgage brokers hope that they can break the strangle-hold that large financial institutions have on the market. Aresnault estimates that about half of all home sales are to first-time buyers.

Mortgage brokers have worked hard to improve their public image after a series of high-profile mortgage company failures made headlines a decade ago.

"CIMBL, which was formed in 1994, now has more than 5,000 members across the country. One of the association's major goals is nearing reality as it works toward developing a formal certification process for its members. The Accredited Mortgage Professional designation is being developed as 'a logical and necessary step as the mortgage industry seeks to become self-regulating,” says new CIMBL president Colin Dreyer.

"When financial services regulators are considering industry self-regulation, they want to ensure that there is adequate consumer protection in the form of professional qualifications and enforcement of ethical standards,” Dreyer says.

The CMHC survey also shows that more than 80 per cent of consumers agree that mortgage brokers should be nationally certified and registered.

The CIMBL program will include development of standardization of mortgage industry licensing courses; mandatory participation in professional development programs, and ongoing continuing education.

"Accreditation will bring the mortgage industry into line with other financial services sectors, such as Certified Financial Planners, who have already developed professional designations,” says Michael Beckette, CIMBL's past-president. Some other highlights from the CMHC mortgage survey:

Published: December 4, 2003

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Jim Adair is editor of REM: Canada's Real Estate Magazine, a business publication for real estate agents and brokers. He has been writing about Canadian real estate, home building and renovation issues for more than 30 years. You can contact Jim at .