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Loyalty: Does it Always Make Sense?

Loyalty: Does it Always Make Sense?

In general I think loyalty is a great quality. I consider myself a loyal person and I value when others are loyal to me. I hope that I am also teaching my daughters about loyalty.

However, there are times when I don’t think it makes sense to be loyal, and that is when it isn’t reciprocated. In my industry, I don’t believe the banks have much loyalty to their clients anymore, especially when it comes to mortgages.

In our case, when our mortgage was coming up for renewal, the bank sent us a letter with various options that were terrible interest rates compared to what the market place was offering. So I talked to my mortgage broker and she found much better rates, with better options on a new mortgage at a different bank.

A few days before we were set to go, my first bank called me. When I told them about our plans to switch, they came back with better options, that were in fact slightly better interest rates than what my mortgage broker had found. It annoyed me that this is the way they operate, and the higher mortgage cost with the new bank was minimal so we moved anyways. It would have been really disloyal to the mortgage broker too who had done a lot of work to find us a better offer.

Has this happened to you?

That is why I think mortgage brokers are the way to go with mortgages. They can find you the best deal, and they’ll be loyal to you because that is how they get compensated.

This article was prepared solely by Laura Chanin who is a registered representative of HollisWealthTM (a division of Scotia Capital Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada). The views and opinions, including any recommendations, expressed in this article are those of Laura Chanin alone and not those of HollisWealth.
TM Trademark of The Bank of Nova Scotia, used under license.

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