Why Loyalty to Your Bank May Cost You

by Shannon Babcock

If there is one thing we hear from clients all the time when they come to talk to us looking for other options is their reluctance to switch banks. Saying “But our bank has been so good to us, we’ve been clients for years” based on the quality they have received. However, there are some things that banks aren’t telling you.

We want to shed light on why considering alternatives such as working with a mortgage broker can be a game changer when securing your mortgage. We understand that staying with your bank is comforting especially since it involves your assets. Loyalty is important, but when it comes to your mortgage it is essential to recognize that your bank can only provide services and rates within its offerings and shopping around has a higher chance of saving you money.

Browne Mortgage works with over 30 lenders which allows us to search within our network of major banks, credit unions, trust companies and more. This means that a mortgage broker can provide you with more options while also doing all the heavy lifting you you.

Why You Should Shop Around

We understand you are hesitant to leave your bank because you feel they’ve been good to you over the years – and maybe that’s true, but here’s what the banks aren’t telling you:

You’re not being offered their best rate upfront. The banks will try to get away with charging you a higher rate so they make more money.
Every bank/lender offers different rates.
Every bank/lender has different rules. If your bank says no, you may qualify elsewhere.
The bank loan officer is not obliged to offer you the best discount on their posted rate. You have to work for it. In certain cases, some bank employees get paid more if they can charge you a higher rate.
Doing a mortgage with the financial institution that carries your day-to-day banking can be a detriment. They can look at your daily transactions and make decisions based on your history.
Some institutions charge fees for simple changes on your mortgage.
PENALTIES: This should be one of the biggest features of your mortgage. The Big 5 banks in Canada have made sure that you pay them the biggest penalties if you leave. The average Canadian redoes their mortgage in month 33 so this comes up quite often.

Working with Browne Mortgages + More means transparency on what the best rates are for you. We are honest throughout the process and will tell you if you should continue being loyal to your bank or help you save money by switching lenders. Let us guide you towards a mortgage solution that aligns with your financial goals.

Why Loyalty to Your Bank May Cost You (brownemortgage.com)