Quote:
Originally Posted by 8sPOT
Having worked in the banking industry for a long time up until recently. I understand that banks never offer the best rates right away, however, I always did. Customers are too educated nowadays. I would pull all my rates with the branch's max discretionary discounts. This had very little impact on myself, until recently. They started saying that certain products will essentially be worth more as far as sales go, so fee based VISA's, insurance, and less discounts has a bigger impact on the banker. Needless to say I was not a fan of this, it goes against the philosophy that we are making recommendations that are best suited for that individual client.
If you go to your bank and say I googled the special rates and I'm looking for a 3 year mortgage at x %, it will come down to your long term potential. Your income, how many products you have at that bank, are you a problem customer, etc. Banks will give good rates but only to customers they feel are worth hanging on to.
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I know this is how the banks operate, but the tied selling is not right. Saying that you need to have RRSPs, TFSAs and insurance with the bank for a loan or mortgage is just wrong IMO. I'm biased for sure, but you can get the same rates through a broker without those requirements. I want to say that tied-selling is illegal, and I think it is, but I hear about it so often that I could be wrong.