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Mortgage Broker News | 01 Sep 2011, 10:00 AM Agree 0
It’s an indication of just how committed RBC is to winning this year’s rate wars, with the mega bank taking on 1,000 new branch employees in the last 14 months – a large percentage of them mortgage specialists and five times as many new workers as it took on the previous year.
  • Mortgage Calculator | 02 Sep 2011, 04:04 AM Agree 0
    In my opinion, in the absence of value there is price (ultra low rates). Mortgage Advisors or Mortgage Planners must strive to add more value to the relationship. RBC seems to be going the rate way that may work in the short term but it is not a good long term option.
  • Wes | 02 Sep 2011, 07:05 AM Agree 0
    RBC is the main lender I run into that is bending the rules to its own gain. They constantly match or beat my rates and clients tell me they are not requireed to provide income or down payment documents, so they go there because it is easier for them. Not good business. RBC is the closest we have in Canada to the unregulated US banking system. Bush league! double meaning...
  • Ron Butler | 02 Sep 2011, 08:14 AM Agree 0
    RBC has been the number one mortgage originator in Canada for over a decade, so I don't understand how their approach is "not long term"

    Also I have been hearing from other brokers that RBC writes "bad business" for the 15 years I have been a broker but their default rate is really no different than the other Big 5 banks.

    Why don't we all just admit the truth: the are the most powerful competitor, end of story.

    Suck it up and fight, don't cry, there's no crying in the mortgage business.
  • alberta | 02 Sep 2011, 09:24 AM Agree 0
    let me tell you a secret about RBC. if you want to beat them, do as I do. I had clients where I could not properly proof their down payment. royal bank had no problem with the down payment. The client told me that RBC would give them the mortgage but a higher rate than I was able to offer, as much as 1% higher, the client said he had no choice. I told the client to go ahead and take that mortgage, two months later I was able to rewrite the mortgage as a refinance and got the client the proper rate he was looking for and wanted. the penalty to break the mortgage was very little, because the way RBC calculates the Pre-penalty. You want to beat RBC. learn everything they do including how they calculate their Pre-penalty and once you know and tell clients how they calculate the pre-penalty. client will think twice before to go with them. --EDUCATION IS THE KEY, LEARN,OBSERVE,AND YOU WILL WIN
  • SW Ont Broker | 10 Sep 2011, 03:45 AM Agree 0
    RBC can hire as many road warriors as they want! They are so far from being "Specialists" it is too funny. Any of the big banks will take our best rate deal and send it to the powers to be and have it matched ! They will never do what we do - they only wish ! If clients want to wait for 7 - 10 days for approval - let them cause that's what the big 5 do - "Makem Wait" ...
  • Brad Geisler | 10 Sep 2011, 04:06 AM Agree 0
    If in fact RBC has a similar default rate as other big banks even with their liberal underwriting (and I know from personal experience for a fact that they have happily approved deals with fraudulent income), then really the lesson is that the other lenders are overly cautious with the guidelines. I more suspect that when a file defaults, one possibility is they review it before submitting a claim to CMHC and if the file is incomplete, they absorb the loss, or more likely, they submit the claim to CMHC and CMHC pays regardless of the condition of the file (I had a CMHC rep tell me once they would never decline a claim). This could have some validity considering the amount of business a bank like RBC would generate for the insurers. What's a few "bad" files in the scheme of things? The conclusion, though, is that RBC rights overall profitable business and wants more! I think the other banks should learn from this and ease up a bit.
  • Elshain | 10 Sep 2011, 04:07 AM Agree 0
    We need to educate the public... Way too many uninformed buyers out there.
  • Derek Rowley | 10 Sep 2011, 05:43 AM Agree 0
    With regards to RBC, I had a situation some time ago where my clients did not qualify and so they went to an RBC Mobile Specialist who did not disclose all their dents including 2 major debts and then she fudged the income big time and WHAM - clients got the mortgage. I went back to the clients and told them that RBC made it look good on paper with no challenge from CMHC, the reality is that they could not afford the mortgage and that was the bottom line. Especially when the TDS was over 70% but it fell on deaf ears. As I was leaving the home I said that I would give them a year tops and they would loose their home, and left. 5 months later their realtor called me and said that the clients had been foreclosed by RBC. After this i was at a CMHC sponsored seminar and mentioned this deal and was plainly told by the CMHC representative that RBC is their biggest client and what RBC wants and does, they get.
    Welcome to the twilight zone.
  • Paresh Desai | 11 Sep 2011, 12:08 AM Agree 0
    What this means that RBC keeps on writing bad loans and CMHC keeps on paying if clients default, the cost is passed on to general public in form of taxes. Taxpayers are unaware of this scam going on, but ultimately they foot the bill. Same situation like US mortgage crisis
  • Tanya B. | 12 Sep 2011, 03:58 AM Agree 0
    Another example of who ever has the MONEY makes the RULES. Banks are powerful entities anyone who thinks differently are fools.
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