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Mortgage Broker News | 12 May 2014, 09:19 AM Agree 0
Here’s a new incentive that brokers may not be able to compete with: one big bank will offer $500 cash back when customers take out a mortgage. In Canadian Tire money, that is.
  • Angela Wong-Liao - Invis Inc | 12 May 2014, 12:09 PM Agree 0
    It appears big banks are consolidating their portfolio.
  • Lance | 12 May 2014, 12:34 PM Agree 0
    Maybe everyone in the mortgage business including the other large banks should not be spending their hard earned cash at Canadian tire which drives in profits so that they can afford to give our competitor Scotia bank a $500 cashback feature.
  • Robbie Ryan | 12 May 2014, 12:48 PM Agree 0
    So I wonder what their position will be for those mortgages that have been originated by mortgage professionals like myself. I can't see them excluding brokers from this arrangement for fear of the repercussions to their broker business. I am told that 50% of Scotia's mortgage business is originated through the broker channel.
  • Josh | 12 May 2014, 01:29 PM Agree 0
    $500 in CanadianTire money??? I can't see this as a selling opportunity, it would be a nice to receive, but not a game changer.

    It does beg the question though. We continually hear about tight spreads, reduction in comp for the Specialist whom work for the banks whom have to offer the discounted rates.

    However, the increases in incentives being offered all over would indicate contrary. For example: Employee pricing, $500 in CanadianTire money, Covering transfer fee's and appraisals, deposits back of $2 per $1,000 of your mortgage balance if you transfer, free ipads etc.
  • DM | 12 May 2014, 02:43 PM Agree 0
    I believe the consumer is not stupid and knows not one Bank gives money away for free. there is always a catch... I just make sure my clients know this and they do not give a second look at this type of marketing!
  • Ron Butler | 12 May 2014, 03:03 PM Agree 0
    Guys, this is really simple, Scotia bought a part of an existing Credit Card portfolio with the concept being that Scotia could punch up the marketing and sell more co-branded CT credit cards. Also Scotia gets their share of the profit on the existing CT Card book. End of story. Nothing about mortgages at all. Canadian banks believe mortgage growth will slow in the coming years so they want to pump up other business lines. TD bought a big chunk of CIBC's Aeroplan business and well as the name rights. Robin Hibberd is a very smart guy and he sees an opportunity here, Scotia levers off hockey in Canada so does CT, therefore decent synergies. So nothing really going on here for our side.
  • LanceH | 12 May 2014, 03:26 PM Agree 0
    Lance is not to be confused with LanceH. Two different ppl.
  • Joohan | 12 May 2014, 03:40 PM Agree 0
    Of course it affects the mortgage business but that probably means Scotia's rate will be less competitive or their margin a bit smaller, if the need arises and the rate is the same, we can either pay $500 of closing costs or appraisal or something to client and our margins will be bit smaller (when we have to) but that is business.
  • Ron Butler | 12 May 2014, 03:49 PM Agree 0
    Joohan, you clearly do not understand the tiniest thing about how banks actually work other then putting your card in the ATM machine.

    Seriously, you think if Scotia spends money on a half billion dollar strategic acquisition they automatically will be short of funds to the point they need to increase mortgage rates?? Really?? I mean: Really??
  • Robbie Ryan | 12 May 2014, 04:48 PM Agree 0
    Play nice.Save the mud throwing for the playground
  • race to the bottom | 12 May 2014, 06:50 PM Agree 0
    its these small moves in the market that will garner the banks more and more of the market and ability to cross-sell, further eroding the broker market share giving them back more control which is what they want.
  • Ron Butler | 12 May 2014, 07:00 PM Agree 0
    @ race to crazy town

    A strategic investment in a credit card business actually has nothing to do with mortgages, maybe you want it to but it does not. It is typical of anonymous troll comments on this site. Attack banks with a fake name because you are afraid of blow back. If Robbie Ryan wonders why I am not supportive of every uninformed, goofy comment that comes down the pike, it's because I choose rationality over blather, facts over fiction and reality over fantasy. This is a mortgage business news board not TMZ.
  • race to the bottom | 12 May 2014, 07:20 PM Agree 0
    do you get the $500 in spending money when one gets a new Scotia Visa? or is it when you open up a new Scotia bank account? The banks have a goal, retain and get new biz from wherever they can, along the way cutting expenses. The broker cannot thrive in this environment. The banks can approve the loans they want and throw money and lots of it at retention.
  • Robbie Ryan | 12 May 2014, 07:32 PM Agree 0
    You've made your point and we've beat this to death. Time to move on.
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