Mortgage Centre sells to DLC

After months of speculation it has been officially announced that Mortgage Centre has been sold to Dominion Lending Centres (DLC).  As franchise owners of Mortgage Centre we knew that there were three potential purchasers for Mortgage Centre including Pacific Mortgage Group and Dominion Lending Centres and it is now apparent that DLC put forward the most attractive plan for CIBC.  The sale transition is set to be completed on June 21, 2013.

This looks like it is CIBC’s final step in their rather short sighted plan to remove themselves as a significant player in the mortgage industry.  The steps have been:

• Significantly reducing the operations of CIBC’s wholly owned brokerage – Home Loans Canada
• Increase in rates through their President’s Choice mortgage channel to reduce volumes
• The Neutering of the top broker channel lender in Canada – Firstline Mortgages – followed by its ultimate death
• And now the sale of a very profitable and long standing asset – Mortgage Centre to Dominion Lending Centres.

It is clear that the direction that CIBC has transitioned to in the past couple of years is a very insular and inward looking approach, only time will tell if it is the best decision for them.  They have removed their outward reaching and profitable  mortgage divisions in lieu of a very inward looking strategy to promote the CIBC brand to their existing customer base.

Mortgage Centre brokerages are not entirely sure what the future holds with the sale to DLC, however sometimes the only constant is change.   I for one am very optimistic and excited for the future of our industry, love working with our clients, and as always am happy to embrace future highs and lows.