How to get a better rate when you renew with your bank
By Joe Busillo
I recently received a notice in the mail from one of the BIG SIX and it had nothing to do with Drake.
They were notifying me that my secured line of credit (LOC) rate was about to increase by .10% “to be in line with their competitors and market prices”. While the increase itself was not huge, I questioned the rationale and decided to do something about it.
I had two options:
- Simply “accept” the changes by not closing out the LOC, or
- Call to discuss the changes.
I chose option #2 – no surprise there. I reached a client care specialist immediately and she was very friendly. I let her know that I was concerned about the seemingly arbitrary increase in my secured LOC rate. And here is the important part, I highlighted that the Bank of Canada rates did not change, so “why was my cozy green couch becoming suddenly less comfortable?”, I said.
The Bank client care specialist read the carefully prepared talk track, let me know that I had every right to be upset and that I could go into my branch and get this reversed (if they deemed my case to be worthy). Although the conversation was pleasant, I escalated to talk to a supervisor to argue my case…
My argument focused on a few very basic things:
- I was qualified originally under an already existing stress test, have never missed a payment and have been a loyal client for over 35 years. Why should my rate go up?
- Why is this Bank’s Prime Rate higher than the other banks?
Is it for penalty calculations?
For example, am I supposed to feel better buying shoes at $100 discounted by 30% and paying $70; or buying the same shoes priced lower but with only a 20% discount?
Don’t trick me with an exaggerated discount or penalize me with an unfair return policy (beware of penalty calculations) - I need to see proof – show me which of the other big banks are offering a similar rate on secured lines
- What’s the advantage of taking the Variable Rate if the Bank is able to change the rate whenever they want?
- If I had taken a 5 year Fixed Rate, would the Bank have the same right to raise this rate? Would the notice read “…you did too good a job negotiating so we’re going to increase the rate by .10%”. Ha!
Accepting the rate change was not an option!
When you feel you are being taken advantage of, no matter how much, YOU can take a stand and make a difference.
It is a numbers game for them, don’t be their number. Shop around.
My rate will remain the same. I’m ready to negotiate on your behalf.
Call, text or email me today: https://yourmortgageyourway.ca/joe-busillo/
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