Reconsidering Home Mortgage Competition Strategy: Banks’ New Approach
Some Canadian banks say they’re starting to question how aggressively they go after mortgage customers amid intense competition.
Speaking at the Scotiabank Financials Summit, RBC chief executive Dave McKay says the bank is being more careful of when it competes for mortgage business in a “ruthlessly competitive” market.
He says the bank is being more hesitant to try to win customers who are just shopping for the lowest rate, with RBC focusing more on clients with other products at the bank or other reasons to fight for their business.
Scotiabank chief executive Scott Thomson has made multi-product sales a key focus of his strategy at the bank and that’s playing out in its mortgage business.
He says the bank has reduced its share of customers with only a mortgage product and will likely not compete aggressively on rates for those clients.
The shift comes as elevated interest rates has slowed growth in the mortgage business, making lenders have to compete more for customers.
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