Here's why it doesn't pay to continue to give your business to the bank that you have been banking for many years. Unless you want to give them an extra $5,000 - 10,000 in extra profit each year.
Attached is what CIBC has given to their existing clients to TRICK them into renewing a mortgage with them. They offer a teaser rate of 1.99% for first 9 months and the remaining term gets a WHOPPING 2.92% on a 5 year term.
They only give 3 options and the 1st option is what people get corralled into choosing because the other 3 are artificially set higher to make the first choice the most obvious. The sad reality is that many other retail lenders (TD/Scotia/RBC/BMO) are offering even lower rates than CIBC. Other retail lenders are offering 2.69% for 5 year and 2.25% variable whereas CIBC has 2.92% and 2.85%.
Wholesale lenders that brokers like myself have access to have 5 year rates as low as 2.44% - 5 year fix term and 2.00% variable rate mortgage. Loyalty doesn't pay any longer. Matter of fact, it will COST you $5-10K!
