Wednesday, 2 December 2015

RBC Posts Record Profits...

Congratulations(I think...) to one of Canada's largest financial institutions(I won't name names here...) on achieving "Record Profits" in 2015!

Considering this has been a particularly uncertain year economically, they've somehow managed to buck the trend and keep right on growing. It's no surprise given their aggressive marketing tactics and their STEEP incentives(Read: IRD calculation HERE) to retain loyal customers. In their defense, they also have an extremely diverse portfolio of businesses and assets to manage, which allows them to minimize their exposure and risk to the more volatile markets in Canada.

Now I'm not going to dumb this dialogue down to "We are getting ripped off by the banks" as @UncommonSenses so eloquently put it in the CBC News comments section, but is it not worth considering that if your bank is posting record profits then are they really your best deal?

As one of the major players in consumer finances and mortgages, this bank plays a role in setting the standards and should act as healthy competition to the other banks, credit unions, and lenders. This role is particularly crucial given their massive marketing power, and their influence over their existing clients. I keep track of their mortgage offers quite closely and while on the surface they may seem to provide competitive rates, there is always a dark side(Star Wars pun intended, 18 days to go!).

A great discussion of the drawbacks of a mortgage with the larger institutions can be found in This Article. What you need to know is that although the rates might be competitive, the terms and penalties are most likely not. And with a large number of homeowners considering moving or refinancing within their original mortgage term, the reality is that you need to consider the penalties. This could mean the difference of thousands or even tens of thousands of dollars later.

When you're ready to discuss whether or not your bank is a good fit for your mortgage, take Yoda's advice and give me a call. Let's start the discussion. Or visit my website today to fill out a secure online mortgage application to get started right now. There are plenty of alternatives to consider that will save you money!

Share This Article
Follow Us

8 comments:


  1. There are two types of Mortgages in Canada, one is a Conventional Mortgage, less than 80% loan to value. The other is a High Ratio Mortgage, 80% to 100 loan to value. Within these two types there are several sub-types, such as Open, Closed and Variable Rate Mortgages.
    To know more visit- mortgage

    ReplyDelete
  2. All centennial celebrations have ended in Indy. The Indianapolis 500 race will take place on May 28, but the field will be officially established this weekend, with qualifying on Saturday and Sunday.

    Saturday's qualifying rounds will determine the Fast 9, and the nine drivers will eliminate him for the first nine positions on the field on Sunday after the No. 10 to No. 33 positions are determined.

    Both qualifying days can be viewed on ABC or via Indy 500 Live streaming.
    The Charlotte Motor Speedway and the USO of NC have teamed up to invite military ID card holders to the Coca Cola 600 race on Sunday, May 28, 2017.

    ReplyDelete
  3. Wisconsin Mortgage Corporation has been providing quality home loans across Wisconsin.Meet our loan officers. Please choose the loan officer that you were referred to view their personal page and apply online.Wisconsin Mortgage Each loan officer's page includes the following services.

    ReplyDelete
  4. Wisconsin Mortgage Corporation has been providing quality home loans across Wisconsin.Meet our loan officers. Please choose the loan officer that you were referred to view their personal page and apply online.Wisconsin Mortgage Each loan officer's page includes the following services.

    ReplyDelete
  5. Thank you admin......Mortgage default protection is a strategy which ensures your mortgage moneylender if you default on your installments

    More info:https://www.marylandnewhomepurchase.com

    ReplyDelete
  6. Nice post. I was checking constantly this blog and I’m impressed! Extremely useful info specially the last part I care for such information a lot. I was seeking this certain info for a long time.
    Mortgage Broker Altona Meadows
    Thank you and good luck.

    ReplyDelete
  7. Hi to everybody, here everyone is sharing such knowledge, so it’s fastidious to see this site, and I used to visit this blog daily.print profits Michael Shih bonuses

    ReplyDelete