In the wake of increased fees at Canada’s largest bank – including fees on mortgages – one professional believes its brokers who will benefit.
“Absolutely it will be a positive event for brokers – how quickly it comes about remains to be seen but certainly as banks add more and more fees to transactions people will be looking around for alternatives,” Mike Celuch of Mortgage Intelligence
told MortgageBrokerNews.ca. “They also made some changes to how they calculate penalties, so I think in the long-run this is definitely going to help brokers out.”
RBC is the most recent bank to draw criticism for its policy changes that will cost clients.
Starting June 1, Royal Bank
clients who have used their allotment of free transactions will be charged an extra $2-5 to make payments on loans, including mortgages, from savings accounts.
The sweeping changes don’t include just loan fees.
Students and children with young saver accounts will be charged a dollar for maxing out their allotment of transactions.
Further, seniors now have to be 65 – up from the original age of 60 – to qualify for a 25 per cent rebate.
Celuch, a former banker, believes the banks don’t properly outline fees and penalties to clients.
“The banks don’t inform the clients – it’s all written in the disclosures, but how many people will sit there and read a 10 page document,” he said. “And if they do, do they fully understand what it says? Most don’t.”
recently drew the ire of mortgage brokers when it implemented a $6-per-month fee for mortgage holders using its All-In-One product, which had previously been offered without a fee.
Now that the precedent has been set, the other big banks are expected to follow RBC’s lead.