Here’s a new incentive that brokers may not be able to compete with: Scotiabank will offer $500 cash back when customers take out a Bank of Nova Scotia
mortgage. In Canadian Tire money, that is.
“This is very much a strategic deal for both Scotiabank and Canadian Tire,” said Robin Hibberd, head of Scotiabank’s Canadian retail products and services division, as reported by the Financial Post. “There is an investment component in their credit card company but this is really more about a partnership that is all around acquiring more customers for both of us.”
ScotiaBank paid $500 million for 20 per cent of the Canadian retailer’s banking portfolio.
Canadian Tire nixed its first foray into mortgages in 2009, deciding, at the time, to focus on its credit and debit card portfolios.
This deal – one that will open the door to a number of cross-selling opportunities -- for ScotiaBank, however, follows a not-so-similar acquisition in mid-2013 when the big bank scooped up ING Direct (now, Tangerine).
It was a move that had a big impact on the mortgage broker industry, as it marked the end of dealing within the broker channel for ING Direct.
"I wish to share with you some important news regarding the future of ING DIRECT’s mortgage business," Kim Luxton, director of broker sales for ING Direct Canada, wrote in a letter to brokers at the time. "Following the recent acquisition of ING DIRECT by Scotiabank we have completed a thorough evaluation of our mortgage business and have come to the decision that ING DIRECT will concentrate its origination efforts on its DIRECT channel and transition its broker business to Scotiabank."