Rewarding clients for switching their mortgage is an old big bank trick, but this one is just too weird to work … right?
Scotiabank is currently offering potential clients the chance to switch their mortgage over – and earn 24 free movie passes for their trouble.
Not the most enticing offer – it will save avid movie goers $355, based on ticket prices at downtown Toronto’s most central Cineplex.
However, the bank claims the switching process is easy and that it would even cover transfer and discharge fees.
A fee-free chance to for a client to switch their mortgage and earn free movie passes?
Not quite.
“Discharge and transfer fees – which are usually a couple hundred dollars -- are separate form penalties,” Anson Martin, a broker with Verico Fair Mortgage Solutions, told MortgageBrokerNews.ca. “Prepayment penalties can be in the thousands.”
Scotiabank does mention prepayment penalties on its website for the promotion. In the fine print, at least.
“Prepayment charges with your existing lender may be applicable if the mortgage has not reached the maturity date,” the bank writes.
This promotion is the latest in a long tradition of big bank ploys to entice other lenders’ clients.
Last September, CIBC ran an advertising campaign that promised clients could switch their mortgages over for free. And earn some cash.
The campaign – which was being pushed online and in print advertisement, including A-frame boards outside branches – told potential clients that, for a limited time, they could switch their mortgage to CIBC for free, and get up to 5% cash back.
A disclaimer did state that the “free” switch doesn’t include existing lender fees.
Not the most enticing offer – it will save avid movie goers $355, based on ticket prices at downtown Toronto’s most central Cineplex.
However, the bank claims the switching process is easy and that it would even cover transfer and discharge fees.
A fee-free chance to for a client to switch their mortgage and earn free movie passes?
Not quite.
“Discharge and transfer fees – which are usually a couple hundred dollars -- are separate form penalties,” Anson Martin, a broker with Verico Fair Mortgage Solutions, told MortgageBrokerNews.ca. “Prepayment penalties can be in the thousands.”
Scotiabank does mention prepayment penalties on its website for the promotion. In the fine print, at least.
“Prepayment charges with your existing lender may be applicable if the mortgage has not reached the maturity date,” the bank writes.
This promotion is the latest in a long tradition of big bank ploys to entice other lenders’ clients.
Last September, CIBC ran an advertising campaign that promised clients could switch their mortgages over for free. And earn some cash.
The campaign – which was being pushed online and in print advertisement, including A-frame boards outside branches – told potential clients that, for a limited time, they could switch their mortgage to CIBC for free, and get up to 5% cash back.
A disclaimer did state that the “free” switch doesn’t include existing lender fees.
