In what one industry player is referring to as a “great example of bank greed,” one big bank has tacked on a monthly fee to one of its most popular programs among brokers.
“This will have a big impact on [National Bank
’s broker business]; the only reason most brokers use them is for this All-In-One [banking product]. Now with this fee attached this will be a problem for sure,” one broker, who asked to remain anonymous, told MortgageBrokerNews.ca. “To be honest, this was the only reason we used National bank. The majority of the deals we sent them were for this All-In-One.”
National Bank’s All-In-One is an award winning financial product that allows clients to tie their mortgage together with other banking products, including lines of credit and bank accounts. It has, heretofore, 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 new pricing will also apply to existing All-In-One clients.
“The bigger issue is we all have sold this product in the past without fees and these past clients will now be hit with this,” the broker said. “I suspect there will be a lot of unhappy National Bank clients starting May.”
Brokers are already anticipating a push-back from clients who may be deterred by the additional fees.
However, National Bank’s All-In-One product has long been viewed as the mortgage broker’s answer to Manulife’s One program. And with Manulife’s product costing $14 per month, mortgage clients may not be so quick to balk at National Bank’s cheaper fee.