Promo to win clients

THINK OUTSIDE THE BOX:  Bank offers may not be as good as they appear?

Banks have become known for their unique promotional mortgage offers, and one of the big five is at it again – but this time with something a little more conventional.

CIBC, which has become known in the mortgage world for its unique advertising efforts and promotional programs, is now offering clients a chance to win a hefty chunk of cash that can be put toward his or her mortgage.

“How long can your mortgage rate go?” the promotional collateral for the campaign reads. “Get a rate of 2.59% for three years. Plus a chance to win $25,000 toward your mortgage.”

Not the most earth-shattering limited time offer, especially considering the bank’s recent campaigns.

Last September, CIBC ran an advertising campaign that promised clients could switch their mortgages over for free. And earn some cash.

The campaign – which was being pushed online and in print advertisement, including A-frame boards outside branches – told potential clients that, for a limited time, they could switch their mortgage to CIBC for free, and get up to 5% cash back.

And just last month ScotiaBank offered potential clients the chance to switch their mortgage over – and earn 24 free movie passes for their trouble.

That deal would have amounted to about $355 worth of free movies, based on ticket prices at downtown Toronto’s most central Cineplex.

In most cases, broker rates beat the promotional rates on offer by the banks and CIBC’s most recent one is no exception.

That three-year 2.59% pales in comparison to rates as low as 2.08%, 2.09%, and 2.19% — all rates currently being offered by Toronto-based brokers on RateHub at the time of this writing.

Justin da Rosa      Mortgagebrokernews.ca      February 8, 2016

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