'We are all doing it': Employees at Canada's 5 big banks speak out about pressure to dupe customers

The three main fibs I've seen over the years for mortgages:

1. "Mortgage insurance is required to get the mortgage". 

This is false. It's not required at all. 

2. "Fixed rate mortgage only has a 3 month interest penalty if you break it"

This is false. There is an interest rate differential penalty involved.  

3. "We can easily transfer your mortgage to another property"

This is false.  Most of the time you have to re-qualify for the transfer. 

What my advise would look like for the above three: 

1. Mortgage insurance is crap.  Get it for the time being while you apply for a term policy direct from an insurance company. Once approved cancel the mortgage insurance. 

2. Use a lender that has a cheap interest rate differential penalty calculation for penalties.  Avoid all big bank fixed rate mortgages like the plague.  

3. Generally you can't, banks want you to re qualify again for the transfer.  Therefore, do not sell your property, until we have a new approval for you. 

http://www.cbc.ca/news/business/banks-upselling-go-public-1.4023575