Clinton Wilkins joins CityNews with Rob Snow to talk about the latest Bank Of Canada Update for January 2024. Clinton provides some insight on what no movement of interest rates means for mortgage lenders
Talking about Financial Literacy Month
Talking About Financial Literacy Month. Don’t feel like listening? Check out the audio transcript below.
Todd: [00:00:00] Jim how are you.
Jim: [00:00:01] Good thanks. Actually my question is more really along the lines of a comment and seeing if I can get Clinton’s insight on it. I’m curious that when the banks sends you out your mortgage renewal you call them and ask them as a preferred client if they can do any better. At the call centre they always say no. You go into the branch and you ask them, No sorry that’s our new rate. And then you go across the street to another bank and they offer you a more competitive rate. You go across the street. Let them know that you’re moving your mortgage and all of a sudden magically they can match your rate. How come they do that?
Clinton: [00:00:39] You know what, I think it’s bad business. Personally, I think that everyone should get the best rate right out of the get go. And I know with us in our office we always give everyone the lowest rate right at the start. And I think if a borrower comes to an unbiased mortgage professional they are going to have someone who is going to be on their side. We start talking to our clients about renewal four to six months before it even happens. So, we’re able to get something in the queue to make sure that they’re going to be protected.
Am I getting the best rate?
The banks and these lenders today are treating the new customers better than they’re treating the existing. Every individual at the branch wants to sell the very highest rate because that’s how they get their sales revenue and their targets. For me, I get paid the same amount no matter what rate you take. We get paid on the volume of the mortgage, if anything I want you to borrow more money.
You know, it puts a bad taste in my mouth when I see these renewals and some of the rates that they’re offering. I don’t think it’s healthy for borrowers and I think every single time your mortgage comes up for renewal you need to review what the rate offering is in the market and seek the unbiased advice. You know the mortgage professionals just give them a call.
Jim: [00:01:54] Clinton, you know, thanks for your professional answer. It’s almost akin to when a few years ago that the banks were talking about the fact that there was no hidden fees in their mutual funds and that the private sector was taking advantage of them. Until the disclosure rules came in place and then all of a sudden magically Oh yes we do have the fees but we try to keep them lower. You know, I just I guess I’m tired a little bit at the top five banks continuously manipulating their truths anyhow, I’ll let you guys go.
Todd: [00:02:27] Thanks Jim, appreciate the call.
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