MLN NewsStream

Rocket Mortgage Canada, the Canadian sibling of U.S. lending giant Rocket Mortgage, will soon allow 3rd-party brokers to submit deals.

The company is launching its new broker division, dubbed Rocket Mortgage Pro, next week. It's doing so with brokers from a single firm to start: BRX Mortgage.

The move is just the latest in a trend of direct-to-consumer (DTC) discount lenders diversifying their originations into the broker channel.

What follows is MLN's take, along with a deep dive into what makes Rocket Mortgage Pro tick.

5% cashback mortgages are the Rodney Dangerfield of lending—they get no respect. Critics pan their higher rates and the fact borrowers have to pay back the cash rebate (typically pro-rata) if they break the mortgage early.

Yet, for the right borrower, these maligned products are a sleeper hit. In fact, cashback mortgages are probably undersold. Here's why.

When employment's on fire, mortgage rates can catch the spark. And while today's jobs report may not have been a raging inferno (growth is expected given massive population growth), it was hot enough to take yields up and kick borrowers' rate-cut dreams into July.

Here's how it shook out: