Brokers aren't convinced by big bank offering

by |
Brokers aren’t buying what one big bank is selling. But customers may be.

“My wife works at RBC (10 years now), there was no such thing and she never heard about it,” Walid Hammami said of the Royal Bank of Canada’s “employee pricing” mortgage promotion. “This is just another marketing gimmick. This one was borrowed from the auto industry.”

And it appears that the majority of the mortgage broker industry agrees.

In a recent poll an overwhelming 85 per cent of voters believe such marketed product is merely a marketing ploy by the bank, which aligns with the overwhelming opinion being aired by industry players in the publication's comments section.

Still, RBC is pumping the tires of the promotion, telling customers that it is the first of its kind.

“This is a first for RBC, and a first for the big banks,” says Sean Amato-Gauci, senior vice-president of home equity financing at RBC. “Home buying season is competitive and cluttered, and it’s not just rates that get you noticed.”

And it’s no surprise one of the “big fives” is using this tactic in a bid to gain market share of its competing banks and the thousands of mortgage brokers across the country.

Canadian banks have been battling for mortgage market share – often a gateway to other banking services — with a variety of low-rate enticements, such as a recent 2.99% rate on a five-year fixed-rate closed mortgage at Bank of Montreal.
  • Jerry Quigley on 2014-05-13 11:34:50 AM

    Wow! Hard to believe that 85% of our brokers have their heads tightly buried in the sand. Isn't all marketing a "ploy" to get customers in the door? I don't like the Royal's operations and my personal experience with them is very poor customer service, almost arrogrant, they do know how to market and have the bucks to do it.

  • Ron Butler on 2014-05-13 2:33:03 PM

    Biggest bank in Canada, 9th largest in the world. I respect the fact you may not like them but as business people we need to accept that many people do like them and plan around that fact.

Broker news forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Name (required)
Comment (required)
By submitting, I agree to the Terms & Conditions