Big bank makes major change to broker program

Big bank makes major change to broker program

Big bank makes major change to broker program 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 MortgageBrokerNews.ca. “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.
 
28 Comments
  • Jerry Quigley 2015-03-06 12:28:37 PM
    You can't sell $6 per month????? Time to lock the friction door!
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  • Ron Butler 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.
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  • OkanaganBroker 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)
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