When Canadians first look for a mortgage, they’re choosier and shop around for the best rate, regardless of the bank they usually do business with. But once their mortgage is up for renewal, they tend to stay with whatever bank they’re already at, according to Canada Mortgage and Housing Corp.
A CMHC survey released last month finds that 89% of consumers renewing their mortgage stayed with the same bank, while 68% stay when they are doing a refinancing.
The banks are doing a good job at retaining us as customers with improved customer service, and many Canadians feel that it will be a big hassle to switch.
But homeowners should remember that they are in the position of power — not the bank. It’s in the bank’s best interest to retain an existing customer since it costs more to attract a new one. So either use that leverage to get a competitive rate, or consider shopping around for a new bank.