* ING broker business to be "transitioned" to Scotiabank
* Scotiabank cites overlap between broker channel businesses
* Scotiabank bought ING Direct from ING Groep last year
By Cameron French
TORONTO, Jan 16 ING Direct Canada will cease
selling mortgages through brokers next month due to overlap with
the larger broker-sourced mortgage business of its parent
company, Bank of Nova Scotia, a bank spokesman said on
Scotiabank, which has the largest Canadian broker-sourced
mortgage business, bought ING Direct from Dutch lender ING Groep
for C$3.1 billion ($3.15 billion) late last year.
ING Direct is Canada's No. 7 mortgage broker lender, and
will cease operating it next month, Scotiabank spokesman Andrew
"We're going to be transitioning the mortgage broker's
business to Scotiabank," he said.
It was unclear what impact the move would have on
Scotiabank's overall loan portfolio.
In addition to issuing mortgages directly to consumers, most
Canadian lenders also issue them through brokers, who offer
loans at cheaper rates. This gives the lenders access to a
larger customer pool for their mortgages, but cuts their overall
The move follows Canadian Imperial Bank of Commerce's
decision last year to shut down its FirstLine Mortgage
broker channel to refocus its business on bank-branded wider
However, unlike that move, Scotiabank will continue to offer
mortgages through brokers. ING will also continue to offer
mortgages through its direct channel.
Shares of Scotiabank, which is Canada's third-largest bank,
were down 28 Canadian cents at C$57.42 on the Toronto Stock