Mortgage Professionals Canada says that it is disappointed in National’s move, which means that only brokers under the Paradigm Quest brand will have access to its products, with additional third parties expected to be announced later.
"The timing of this announcement is very unfortunate, especially given that the new federal changes to mortgage insurance and eligibility are just coming into force," said Paul Taylor, President and CEO of MPC.
The organization believes that there is growth ahead for the mortgage brokerage industry and, although it welcomes the continuance of products through Paradigm Quest, it raises concerns over the impact on market competition.
"The impact of [the federal mortgage] changes on the market place are still being determined, but in times of increased uncertainty and technical changes of this nature, consumers will be more inclined to seek the expert advice they will receive when working with a mortgage broker," added Taylor.
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National Bank’s decision to withdraw from Canada’s mortgage broker channel has been criticized by a leading industry body.