This is a big year for Heather and I financially -- it's mortgage renewal time.
In October our current 5-year mortgage is up meaning we can renew or move our business elsewhere. We're in that 120 day period where we can renew if we stay with RBC and tomorrow we've got an appointment to see if the bank will make us an offer we can't refuse. Somehow I doubt we'll hear that offer.
I had an appointment with BMO the other week to see what that bank could offer us. I came out impressed as the rate they offered was 1.5 per cent lower than our current rate. That struck me funny as a recent message RBC left on our phone had an ominous tone, talking about the hikes in interest rates and about how it was important to lock in now. A hike in interest rates . . . is that bank code for we're going to screw you royally?
A colleague of mine recently told me she's never stayed at a bank for longer than one mortgage renewal period. She's always been able to get a better rate at another bank. If the same holds true for me I have but one question -- What happened to loyalty?
If a new customer can walk into RBC and get offered a rate of 4.1 per cent why can't a customer who has been with the bank for more than 10 years get offered the same rate? What about a 'loyal customer' rate? I can already hear the laughter emanating from the mortgage lenders as they read this blog.
Maybe I'm wrong. Tomorrow Heather and I could walk out of RBC with the lowest rate we've ever paid. Or not.
What's your experience with banks? Any suggestions? I'd like to know. I'll let you know how we do at RBC tomorrow.
I have no personal experience with RBC, but I have had friends and family who did have dealings with them and were very unsatisfied. My impression from them is that RBC is very much a "business-client bank" and not a "people-client bank", meaning they bow down to small and large business accounts, and care very little for the average Joe.
ReplyDeleteI have had great dealings with TD. But at the end of the day, banks are out to make the most for their shareholders and care little for "loyalty". If they lose your business, there is always another couple around the corner.
I wish you luck.
Hey Ian,
ReplyDeleteWe are doing the same thing- Up for renewal in October but doing our homework early. We are also with RBC. We have met with Scotiabank and they worked really hard to get our business - we also met with our bank and we were completely disappointed- felt like the lady who met with us just assumed she was going to sign us right up with them with no questions asked... They are supposed to call me back tomorrow with their best rate. I'm in real estate so I always get email blasts from Brokers and I'm not sure why the big 5 can't come down to their level but I was also dismayed to see RBC offering new customers 3.85%... I just think that you have to take all that info to them... I mean, if they won't offer you the "new client" discount, BMO, Scotia and CIBC will welcome your business.. That being said, I really like RBC and hope we can carry on a relationship with them... Good Luck! Sara