Royal Bank made headlines recently with its “employee pricing” spring promotion. Most of us have seen this type of marketing before but not in the mortgage industry. The idea behind the promotion is to offer the general public the same rates and terms that are offered to employees of RBC. Based on my experience in talking with RBC Mortgage Specialists there is no such “employee pricing”.
The promotion is very simple. RBC is offering 5 year fixed mortgages at 2.99% and 4 year fixed mortgages at 2.79%. Both very competitive offerings in the marketplace. The concern I have with this promotion is the clients needs and goals tend to get lost in the shuffle. The focus moves to the promotion and the rate, losing sight of what is much more important and that is a long term strategy that is best suited for the specific client.
The idea of this blog post is not to be negative about this offering but simply to remind you that rate is an important aspect when shopping for a mortgage but there is much more to the mortgage and the experience of shopping for a mortgage than ONLY rate.