BIG SIX BANKS REPORT ‘OBSCENE’ RECORD $34.8 BILLION IN PROFITS FOR 2015...AND STILL COMPLAINING! This heading is from ‘CanadaMortgageNews.ca’ and we think, is really a headline that deserves some deep thought. “RBC reported a $10 Billion annual profit for 2015, almost a third of the whole, gigantic profit pie. Yet they are crying the blues and warning of troubled times ahead. (uh, that’s the same speech they’ve made for the past 10 years) this article points out. “Year after year after year the BIG SIX BANKS continue to report record profits and then raise our banking fees, hire foreign temporary workers and fire Canadian employees, and then use off-shore staff to cut their overhead and increase profits further.” All the while, year after year raising ‘outlook’ concerns and the likelihood of rising rates. Research shows that in fact BIG BANK PROFITS have grown collectively from $19.5 Billion in 2010 to over $34.88 Billion last year. This is a mind boggling increase of $15.3 Billion higher or approximately 75 per cent in just five years. Our BIG BANKS ARE SO POWERFUL now that they ignore Bank of Canada efforts to stimulate the struggling economy, but not passing on reductions in prime rate. We suggest to you that a big part of this almost sickening profit scenario comes from MORTGAGE PENALTIES. Such penalties used to be equal to 3 months interest. Today through years of manipulation, bank mortgage ‘break’ penalties are roughly 4 times more. Let’s think of this as a 400% increase shall we. Ten years ago we were used to seeing penalties of $2,000, $3,000, $4,000. Today it is not unusual to see $10,000, $15,000 even $20,000 plus. Can you imagine this happening to you? Well it happens every day! You see, people do not expect they will need to break their mortgage within the term (most are 5 years) but life happens...job transfer, job loss, divorce, personal credit problems, a better opportunity to move up (or down), and yes, death in the family. We see it all. Consequently upwards to 40% need to break their mortgage AND OUCH!!! Because BIG BANK PENALTIES ARE NOW SO HIGH, many have no choice but to stay in the mortgage. Others are less fortunate get nailed. Big time! Folks, your best protection against getting hosed is to seek out a reputable mortgage company such as ours. Our lenders are both fairer and more competitive in terms of rate and terms. For your next mortgage need, please call us first!
BIG SIX BANKS REPORT OBSCENE RECORD 34.8 BILLION IN PROFITS FOR 2015…AND STILL COMING DOWN
Posted by: Tracy Luciani Price