Mortgage price optimization for better market positioning

Mortgage price optimization for better market positioning 
 
OPPORTUNITY/ISSUE  

A leading mortgage business sought a transformative pricing approach after recognizing the need to stay competitive. 

Our client’s market was dominated by 5-6 major national players, with some competing heavily on price. This situation often leads to price wars that do not create value for any of the market participants. The absence of a well-defined pricing and product strategy, coupled with a lack of analytical expertise, left our client vulnerable in the market. 
 
Meanwhile, the mortgage market was undergoing significant regulatory changes. These included tighter mortgage qualification criteria and the introduction of stress tests for both high-ratio and low-ratio mortgages meant to improve the quality of mortgage lending and to reduce the number of highly indebted borrowers.  

It was therefore crucial for…