Brokers disappointed by big bank change

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Brokers are voicing their displeasure with a recent change made by a big bank that will affect past and future clients.

“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, Ron Butler of Butler Mortgage wrote on MortgageBrokerNews.ca. Even when the product offers advantages, those are tough optics.”

National Bank’s All-In-One financial product -- which allows clients to tie their mortgage together with other banking products, including lines of credit and bank accounts – had, until recently, 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 changes will affect future clients who sign up for the product, as well as those who are already National Bank All-In-One customers.

And while many industry players are frustrated that they will have to explain the additional fees, others see it as an opportunity to reach out and become top-of-mind to clients once again.

“If you ask me this fee increase is a great opportunity for Brokers with National Bank clients to reach out and connect with their clients again,” Scott Peckford of Mortgage Architects wrote on MortgageBrokerNews.ca. “Who knows what other problems you can help your clients solve; as a wise friend once told me: Change equals opportunity if you are paying attention.”

Related:
National Bank announces changes to broker compensation
 

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