Big bank makes unique offer to try to entice clients to switch

Big bank makes unique offer to try to entice clients to switch

Big bank makes unique offer to try to entice clients to switch Scotiabank is currently offering potential clients the chance to switch their mortgage over – and earn 24 free movie passes for their trouble.

Not the most enticing offer – it will save avid movie goers $355, based on ticket prices at downtown Toronto’s most central Cineplex.

However, the bank claims the switching process is easy and that it would even cover transfer and discharge fees.

A fee-free chance to for a client to switch their mortgage and earn free movie passes?

Not quite.

“Discharge and transfer fees – which are usually a couple hundred dollars -- are separate form penalties,” Anson Martin, a broker with Verico Fair Mortgage Solutions, told “Prepayment penalties can be in the thousands.”

Scotiabank does mention prepayment penalties on its website for the promotion. In the fine print, at least.

“Prepayment charges with your existing lender may be applicable if the mortgage has not reached the maturity date,” the bank writes.

This promotion is the latest in a long tradition of big bank ploys to entice other lenders’ clients.

Last September, CIBC ran an advertising campaign that promised clients could switch their mortgages over for free. And earn some cash.

The campaign – which was being pushed online and in print advertisement, including A-frame boards outside branches – told potential clients that, for a limited time, they could switch their mortgage to CIBC for free, and get up to 5% cash back.

A disclaimer did state that the “free” switch doesn’t include existing lender fees.

  • dupedbyCIBCpromo 2018-06-05 11:07:24 PM
    i did that CIBC switch and was told "all penalties are taken care of by the money you get, so you'll come out way ahead". too good to be true, well it was. in fact, at the end of the year i noticed my CIBC beginning loan value was higher than my previous year's loan value with the other bank. how's that possible, well CIBC took the $3,500 penalty from the other bank and added it to my principal mortgage debt. so now i am paying them front end interest on the penalty monies which basically wipes out any of that money they 'gave' me to switch and break my other mortgage. yep, i was a sucker for the fancy sign outside the branch. slight chance maybe i came out ahead a few dollars or more likely i lost money? who knows because it's not calculated and given to you to see the math. now i am stuck with them and forsure i will switch when my renewal is up because i feel like i was fooled. nobody said anything about adding $3,500 to my mortgage debt, i would never of agreed to that.
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