Lenders highlight features other than rates as competition intensifies

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With the busy spring buying season kicking off mortgage lenders are keen to be seen as having the best deal but it’s not necessarily all about the rates. BMO and TD Bank both recently announced headline-grabbing ‘special’ rates but RBC is this week launching its marketing for ‘employee pricing’ on new loans, essentially offering a staff discount to customers. Although that would mean a rate of 2.69 per cent, beating those advertised by BMO and TD, the bank is not advertising the numbers. Sean Amato-Gauci, RBC’s senior vice-president of home equity financing told The Globe and Mail:  “We all know there is so much more involved in the home-buying decision and taking on such a large debt. To keep the conversation focused on just the rate does a disservice to consumers.” Meanwhile Scotiabank will be highlighting other elements that make a mortgage product better; being able to break the loan early or make additional payments. The bank is publishing results of a consumer survey showing that 84 per cent say rates are important but a large number also care about other features. Read the full story.

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