Big bank makes major change to broker program

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In what one industry player is referring to as a “great example of bank greed,” one big bank has tacked on a monthly fee to one of its most popular programs among brokers.

“This will have a big impact on [National Bank’s broker business]; the only reason most brokers use them is for this All-In-One [banking product]. Now with this fee attached this will be a problem for sure,” one broker, who asked to remain anonymous, told “To be honest, this was the only reason we used National bank. The majority of the deals we sent them were for this All-In-One.”

National Bank’s All-In-One is an award winning financial product that allows clients to tie their mortgage together with other banking products, including lines of credit and bank accounts. It has, heretofore, been on offer without any monthly fees.

However, in a communication sent to brokers Thursday night, National Bank announced it will now charge clients $6.00 per month to use the product.

Additional accounts tied to the product will also be charged $6.00 per account per month. The previous fee was $2.50 per account per month.

The new pricing will also apply to existing All-In-One clients.

 “The bigger issue is we all have sold this product in the past without fees and these past clients will now be hit with this,” the broker said. “I suspect there will be a lot of unhappy National Bank clients starting May.”

Brokers are already anticipating a push-back from clients who may be deterred by the additional fees.

However, National Bank’s All-In-One product has long been viewed as the mortgage broker’s answer to Manulife’s One program. And with Manulife’s product costing $14 per month, mortgage clients may not be so quick to balk at National Bank’s cheaper fee.
  • Jerry Quigley on 2015-03-06 12:28:37 PM

    You can't sell $6 per month????? Time to lock the friction door!

  • Ron Butler on 2015-03-06 12:32:39 PM

    National Bank is correct that Manulife charges fees but Scotia does not charge fees for it's multi-part STEP product. That being said National Bank offers strong compensation on the AIO product which we use to produce incentives for consumers to switch lenders such as free legal fees and rebated discharge costs. I think the difficulty will be explaining to customers who currently pay nothing on their Secured Lines of Credit that will now pay $6.00 per month even if the balance is ZERO, even when the product offers advantages, those are tough optics.

  • OkanaganBroker on 2015-03-06 12:36:36 PM

    But why bother selling their product? Credit Unions have the CreditMaster, Scotia has the STEP, etc etc...all without fees.
    I actually have a National "All In One" myself, but dealing with National for approvals is far more painful than many other lenders... I can't be bothered to use them when better options now exist. (though they were awesome when I got mine many years ago)

  • OkanaganBroker on 2015-03-06 12:38:46 PM

    Though I am pretty pissed they now want me to pay $6/mth....Hmmmmm

  • OkanaganBroker on 2015-03-06 12:38:48 PM

    Though I am pretty pissed they now want me to pay $6/mth....Hmmmmm

  • Broker on 2015-03-06 12:42:35 PM

    Jerry, you are short sighted and miss the point. It is not about being able to sell the fee to the client. Its about getting your client the best deal possible and not wanting your client to pay this fee.

  • Chris Richards on 2015-03-06 12:43:17 PM

    Agreed - AIO is a great product, offering future flexibility and options for the client, often not immediately apparent to them. Explaining they now have to pay $6/mo for this "optionality" likely a tough sell. I think it would be more palatable if $6/mo only applicable if using the LOC portion.

  • LondonBroker on 2015-03-06 12:45:16 PM

    Not so bothered by the fees as long as client go into the deal knowing. But for existing client, this sucks. They will be really upset

  • Gary on 2015-03-06 1:10:07 PM

    There are lots of non fee options available.
    This is just another reason to avoid NBC.

  • Jerry Quigley on 2015-03-06 1:13:16 PM

    @Broker Why don't you try to get your clients interest free products. Now your talking!

  • Ron Butler on 2015-03-06 1:20:33 PM

    I can tell you there have been a ton of tiny fee upticks banks have made in last year. From every bank really. I had one set of fees go up twice in 6 months. The low interest rates have an impact on banks profits when they reach these rock bottom levels.

    I don't think there is any point to say NBC is a bad lender, they do a ton of broker business year in and year out. The optics of this particular move are not great and we as brokers will hear it from some clients that we told the SLOC with NBC would be no cost if they never used the SLOC.

  • Jennifer on 2015-03-06 1:22:46 PM

    Good lord - what is $6/mo when you are using it for interac/debit transactions, still cheaper than a bank chequing account?? that is nothing..

  • Ron Butler on 2015-03-06 1:31:05 PM

    Jennifer, your business card clearly would not say "consumer advocate". The vast majority of broker sold AIO products are just mortgages and SLOCs there is no bank account attached, the clients bank elsewhere. So now thousands of people across Canada who have a mortgage and a SLOC with a ZERO balance will be charged $6 a month for what they would rightly consider to be NOTHING. They have no balance on the SLOC!! They are being charged for the "option" to borrow money some day. That is why the optics are bad.

  • LanceH on 2015-03-06 1:54:49 PM

    I use National for lots of other stuff. In fact, don't think I've ever sold a SLOC. They're anal on paperwork, is true, but they've done deals no one else will entertain. Particularly large deals!! Maybe Brokers need to look at them a little differently?

  • Bob on 2015-03-06 1:57:45 PM

    How come no one is up in arms about this product being a collateral mortgage? Funny how that becomes irrelevant when it suits brokers. I can see that the banks look at these unutilized LOCs as a loss of revenue & want to recoup some of that with the increase/new fee.

  • Bev Gay on 2015-03-06 2:05:40 PM

    You made it sound like a broker based fee. Good grief..!!! who care about $6. manulife is $14.

  • DeJong on 2015-03-06 2:12:05 PM

    A question for those more familiar with the "all in one"-type products: If the mortgage is structured as a collateral charge with a HELOC behind it, and if a client misses a mortgage payment, will it accrue on the HELOC automatically? If so, it seems like nice "insurance" in case a borrower's cash flow is weak one month.

  • Ron Butler on 2015-03-06 2:24:35 PM

    Honesty Bev Gay Good Grief on you!!! Who cares about being charged $6 a month for NOTHING if you have a zero balance on your HELOC and no bank account include in the AIO?? Every mortgage broker should care.

    What else are we here for except to get good deals for the consumer and $6 a month for nothing is the furthest thing from a good deal. I have nothing against NBC. They are a good lender, they have done many goods deals for me and treated me very well but we all have to understand as brokers we are consumer advocates and $6 a month for nothing is not a good deal for the consumer.

  • OkanaganBroker on 2015-03-06 5:23:19 PM

    Really? I can't believe some of the comments here...C'mon people...Ron is 100% right...why use a lender with a fee when others have NO FEE for the exact same product? As for being a Collateral Mortgage, that has already been beat to death elsewhere..., We are Mortgage Brokers, Our job is to properly inform and advise our clients and get them the very best product and rate to suit their needs, Be it a Collateral Charge or otherwise.
    If you pick your clients lender simply on what they pay you, OR if have to "sell" your clients on a product & fee when better options are available from other lenders, SHAME ON YOU!

  • OkanaganBroker on 2015-03-06 5:26:13 PM

    Dejong, good question...but NO...clients have payment requirements on HELOC as well, missed payment on fixed does not accrue to HELOC..

  • Mr.Mtg on 2015-03-06 5:36:42 PM

    Valid points. Keep it simple and stay with the big banks and dont use a broker. Then you wont have ANY of these issues. TD for example does not charge any fees for a Flexline/Mortgage combo. Funny how that works. :-)

  • OkanaganBroker on 2015-03-06 5:43:17 PM

    Mr Mtg...really? sounds more like Mr TD Banker...?? By the way I was a banker for many, many years, and had to play the game of trying to get cients to accept higher rates, and buy additional products to increase branch profits...As brokers we get better rates out of many of our lenders than the branch staff can offer their very own clients, So NO, don't stick with the "big banks" and ALWAYS use a Mortgage Broker.

  • Mr.Mtg on 2015-03-06 5:49:32 PM

    I would never recommend a broker to anyone. Just at all the stanky hot air coming off of all of these brokers? Rah rah broker? Meh not a fan, unless you want unethical advice, being "shuffled" between lenders so that the broker can get paid every 5 years and no guarantees that the lender can renew at maturity. Stings a bit, I know.

    Yours Truly,

    Mr. Banker ;-)

  • LanceH on 2015-03-06 5:56:26 PM

    @Mr.Mtg. Forgive me sir, I hope you get the promotion you're bucking for on here, (are you sure your boss read this?) but this is for Brokers, wankers not required!!

  • OkanaganBroker on 2015-03-06 5:57:37 PM

    Dear Mr Banker...being a banker for 15 years myself I can assure you that a GOOD Mortgage Broker is ALWAYS the better option. Believe it or not, not all Brokers play the 5 yr shuffle game..doing anything that is simply for the Brokers benefit is totaly wrong, I couldn't agree with you more. In 25 years of lending I have never heard of a lender NOT renewing, unless the client was in default?? Unethical advice...yep...seem that from both bankers and Brokers, don't paint us all with the same brush.

  • Scott Peckford on 2015-03-07 10:39:39 AM

    First of all it troubles me that people will comment in a public forum but not use their name. If you have something to say, man up, or woman up and use your REAL name.

    I think it is unfair for NBC to compare their $2.50 cost to Manulife's $14 a month cost.

    Manulife will pay for legal fees and appraisals in most cases. In my mind, the higher fee of Manulife is justified, when you are getting in for free.

    Of course NBC can't pay for legal fees and appraisals and pay us brokers. Which makes sense from a business perspective.

    If they want to raise fees that is their business. Just like it our business to recommend a different institution when appropriate.

    If you ask me this fee increase is a great opportunity for Brokers with NBC clients to reach out and connect with their clients again.

    Who knows what other problems you can help your clients solve.

    As a wise friend once told me. Change = Opportunity if you are paying attention.

  • Wayne Campbell on 2015-03-08 1:37:31 AM

    Frankly, if someone does not have the courage of his convictions sufficient to state his name then we shouldn't have to read his drivel and his comments should be deleted!

  • Ernie on 2015-03-08 4:36:31 PM

    Well ..that is disappointing. I just signed up a client to this program, and now this fee? If they are going to impose this on existing clients, they should have the courtesy to allow them to go to a regular mtg - and cancel the LOC - these people just wanted it as security - it is one thing to be charged the fee if you are using it - but if it is zero? come on ..

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