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2 Jun



Posted by: Tracy Luciani Price

This is but one of many adages that suggests we avoid trying new things so that we stays with and keep the good old ‘status quo’. Another one is “Better To Be Safe Rather Than Sorry”.
In this hectic world today we are bombarded with messages of ‘Caution’. We are ‘fed’ a steady diet of reasons not to “Rock The Boat”creating a mindset which is based in ‘Fear’ and ‘Negativism’. For these reasons our human condition or tendency is to avoid change. In fact most people dislike ‘Change’ and even fear change.
These are people who continue to believe that “The Bank is their friend”. “The Bank Has Always Been Here For Me” they say. In reality they can only say this if and only if they have never had a problem that involved approaching their bank to help them, only then to find out that the bank is not their ‘friend’ any longer. The banks are always eager to ‘serve’ us but when we have a problem such as job loss, separation, divorce, injury, disability etc., we are seen as ‘risky’ to them. Then the response is “Sorry We Cannot Help”.
But it goes much deeper. We are all aware of the relentless cycle of banks to increase ‘Profits’. They are doing a great job of it aren’t they. We continue to see record profits year and after, pretty much without exception. What other industry can produce so much profit. Clearly our big banks have an unquenchable thirst to keep profits rising, seeming without fail. How can this possibly be? It is not ‘normal’ is it? It goes against conventional thinking does it not? They must be “Getting Away With Something” one might surmise.
The truth is that every bank’s ‘modus operandi’ is to maximize profit by getting as much from the customer as possible. Bank staff is trained to accomplish this and they are required to meet quotas designed to achieve this end.
Our role is to create consumer awareness of bank practices and products that are widely considered to be shall we say ‘Opportunistic’. Last week we wrote about excessive and punitive bank penalties (including how they are calculated) versus the much lower penalties our lenders require when a mortgage ‘investment’ is terminated before its contractual term/maturity. We have also written about bank collateral mortgage products that are also designed to extract maximum profit while at the same time giving the banks more control over the borrower than ever before, all this (apparently) without full and proper disclosure to the client. Such lack of disclosure is now commonly seen in the media.
Making a ‘change’ is a good thing to do when one has taken the time to understand the real benefits. ‘Informed’ Canadians are choosing mortgage brokers more and more as they realize we are looking out for your best interests and we can invariably provide you with the best solution and experience.
For your next mortgage, please call us first. You’ll be so glad when you do!