9 June 2014
And today, when everything can be found online, it’s a big mistake to be shy and complacent. Shopping around is simple and it can save you a lot of money, Moreover, you’ll be prepared for talking to your bank if you do your homework.
As a rule, Canadian consumers turn to the Big Six banks for absolutely everything: chequing and savings accounts, mortgages, credit cards, investment advice etc. Credit unions can boast of a loyal following, but they are more popular in the West than Ontario.
In the end, the banks just tie their clients with silk ribbons, providing cross-selling services with high fees. And the idea of getting untied is so exhausting that most clients don’t even think about it. So the banks get more profit from such inertia and passive behaviour.
A 2011 Bank of Canada survey showed that existing bank clients don’t receive the best deals when renewing mortgages. Instead, new customers and first-time buyers do. New customers give banks a chance to sell more products, so they want to attract them. Meanwhile, existing customers believe they will get the best deal due to their loyalty, so they don’t shop around. In the end, their discount is minimal.
If you are too lazy to do mortgage research on your own – at least visit mortgagelegko.com for best offers or talk to your mortgage broker, we do the job for you!