BMO follows through on something that makes good sense.  This move eliminates internal competition for the same mortgage product, and allows the bank to focus on optimising the process for acquiring mortgages, once.  Previously, broker mortgages were understood to comprise a significant percentage of all mortgages acquired.

The bank is no longer buying third-party mortgages and in the past month it decided to stop using mortgage brokers, Frank Techar, the bank’s head of Canadian personal and commercial banking, said at a conference.

Bank of Montreal said it will stop using brokers because their business, although profitable, brings in the lowest spread, and because it confuses consumers who see BMO-branded mortgages offered at different rates.

Source: Canadian Banks & Insurance