You may have seen the ads from a bank declaring “Employee Pricing” for your mortgage. Before we get too caught up in the Hype, let’s take a closer look. Years ago, this particular bank may have given some mortgage perks to their employees. It looks like those days are gone. The “employee pricing” is really just a marketing gimmick to make something that is below average seem better than it is. I don’t mean to pick on the car dealerships, but employee pricing is a gimmick they have been using for years. It makes you think of other ways the banks and car lots are starting to look the same. Let’s play a game called “Dealership or Bank.” I’ll make a stereotypical statement, and you try to figure out if it belongs to a car dealership or a big bank!
Dealership or bank?
– They will try to sell you a bunch of extras, you probably don’t need.
– Read the fine print, you don’t want to get nickel and dimed to death
– Only suckers pay the listed price.
– You can get Employee Pricing for a limited time.
– The deal is so good, we can’t advertise it on our website. Come on down and I’ll take care of you.
The last statement is because the bank is waving the employee pricing flag, but if you go onto their website it doesn’t say what that rate actually is. It just says to contact them. I always question deals that are so good, they can’t tell you what you really get. Maybe I’m getting cynical in my old age, but when someone says, “I can’t tell you what the deal is, but trust me, it’s a good deal.” It turns out that isn’t always the best deal for me.
To the best of my knowledge the rates for the so called employee pricing is 2.99% for a 5 year and 2.79% for a 4 year term. These rates are not horrible. But still pretty far off from what mortgage brokers are offering. Feel free to check out my website at any time to see where my rates are at. We are currently 20 to 30 basis points below that mark. Not to mention how the bank calculates penalties if you break the mortgage mid term. See my previous blog “Not All Mortgage Penalties Are Equal” for more details on that subject.
We’ve all known for years that the car dealers are out to maximize their bottom line, now we see the same gimmicks from the bank, with the same goal. It’s good to see the banks are finally showing their cards. Let’s face it, If it it looks like a Goose, and Sounds like a Goose, be careful where you step because we all know what goes though a Goose.
Maybe the next time you go to the local branch they will have a “Wacky Waving Inflatable Arm Flailing Tube Guy” Thanks “Family Guy” for giving those things a name that’s fun to say.
Of course if you just want the best mortgage for you and your family, without all the cheesy gimmicks, call Mike Trollope (204) 573-3938. That offer goes out to the bank employees as well.