Personal Finance

Advice On Multiple Bank Accounts - Home Ownership

  • Last Updated:
  • Apr 9th, 2015 2:01 pm
Tags:
None
[OP]
Newbie
Apr 7, 2015
1 posts
New Westminster, BC

Advice On Multiple Bank Accounts - Home Ownership

Hey everyone,

recently i was thinking of opening a second bank account to have some of my money out of reach and reaping some benefits from a different banks benefits. Alongside i thought it was would be smart to have a relationship built with a second bank in-terms of money coming in and out as eventually i will want to buy a home.

Currently for most of my life i have been banking with one big five bank (canada) which has everything, credit card, chequing , tfsa, line of credit etc.

Would it be smart to open for a example a chequing account in another bank and either close or leave the one i have currently inactive (reason is other banks have zero fees alongside building new rep) or would this hurt my chances of getting a home later as incoming paychecks wouldn't show on my main bank account anymore. (would simply have tfsa and credit card).

what is everyone's advice or current situation with one to many banking situations. (nothing specific needed as it can be personal)

thanks!
10 replies
Deal Addict
Jul 28, 2012
1041 posts
475 upvotes
Trois-Rivières, QC
Moneytasker88 wrote: recently i was thinking of opening a second bank account to have some of my money out of reach and reaping some benefits from a different banks benefits.
Why do you need to have money out of reach?
What kind of benefits are you looking for?
Moneytasker88 wrote: Would it be smart to open for a example a chequing account in another bank and either close or leave the one i have currently inactive (reason is other banks have zero fees alongside building new rep) or would this hurt my chances of getting a home later as incoming paychecks wouldn't show on my main bank account anymore. (would simply have tfsa and credit card).
Look at this way: you can get a mortgage loan from any financial institution willing to provide it to you. They have other ways to check your income (your T4 slips, letter of employment, etc.)
Banned
May 12, 2004
9756 posts
4131 upvotes
Ottawa
Moneytasker88 wrote: Alongside i thought it was would be smart to have a relationship built with a second bank in-terms of money coming in and out as eventually i will want to buy a home.
Relationship? The only relationship you'll have is an abusive one so get a hot deal on some lube my friend. You don't think they see you coming as an easy target/fool if they handle all your money already?

I've had 6 mortgages and EVERY.SINGLE.TIME my bank was far from the best rate. If another bank has a chance to make you switch they'll dangle that carrot with great rates. When they offer the world to new customers ($300, ipad, other tablet) and don't give jack squat to their existing customers that have been their slaves for years...why would mortgages be any different?

I can't believe people think they can 'have a relationship' with a bank in 2015, anyone anywhere has access to your credit and banking history. You are nothing more than an account number and monthly income for your bank.
Sr. Member
Jun 1, 2006
992 posts
215 upvotes
Like everyone says, there is no benefit for loyalty anymore.
In fact, it seems like most banks actually favour new customers more than existing customers. There really are no benefits to being an existing customer...you do not get preferential rates, preferential pricing, etc.

The ONLY benefit there could be is if you have a good relation with someone who works at the bank. I have a good relation with my Financial Advisor, and he has the ability to wave a lot of fees, etc. that I have asked for. OTher than that, there is no benefit for staying loyal.
Deal Fanatic
Apr 23, 2009
5159 posts
692 upvotes
South of Ottawa
Whenever you do buy a house, I'd highly recommend not doing your daily banking with whoever is holding the mortgage.
Banned
May 12, 2004
9756 posts
4131 upvotes
Ottawa
exstasie wrote: The ONLY benefit there could be is if you have a good relation with someone who works at the bank. I have a good relation with my Financial Advisor, and he has the ability to wave a lot of fees, etc. that I have asked for. OTher than that, there is no benefit for staying loyal.
That's the only caveat and I was going to write that. If they're holding on to a couple 100K of your money they ewant to hold on to it so you're more important to them than Johnny Checking Account. When you do use it to your advantage and milk the living daylights out of them. Ask them to waive any fee you pay, ask for complimentary tickets to events they sponsor (usually vip and aycd), your banker has a 'profitable customer' spending account so they might also give you free dinners...that's when you want a relationship. By that time you'll likely be mortgage free and won't have to call the 1-800 number like the other mortgage holders.
Member
Dec 2, 2007
292 posts
11 upvotes
Beachdown wrote: Whenever you do buy a house, I'd highly recommend not doing your daily banking with whoever is holding the mortgage.
What is the reasoning for this?
Deal Fanatic
Apr 23, 2009
5159 posts
692 upvotes
South of Ottawa
Z Tuned wrote: What is the reasoning for this?
If you have a collateral mortgage, they can access any funds you have with them without your permission (there's a clause in the mortgage documents that no one reads), they will put a charge on title that covers off every debt you have with them (ie. visa, loc), etc.

I just went through a horrendous nightmare with RBC who basically owned me (mortgage, insurance, car loan, some investments, loc). A small mistake on their part snowballed into a near disaster. Because so much of my financial life was tied up with them it was unbelievably easy for them to mess it up and very difficult to get them to fix it.
Deal Fanatic
Apr 23, 2009
5159 posts
692 upvotes
South of Ottawa
Cas77 wrote: Great bedtime read for anyone that is getting/renewing a mortgage:
http://www.bankofcanada.ca/wp-content/u ... wp11-3.pdf
I just skimmed through that and wondered why a study of discounting doesn't include even a mention of higher IRD for prepayment. The lawyer I spoke with said that the banks keep their posted rates high and offer discounts because that discount plays into their hands perfectly.
Member
Dec 2, 2007
292 posts
11 upvotes
Beachdown wrote: If you have a collateral mortgage, they can access any funds you have with them without your permission (there's a clause in the mortgage documents that no one reads), they will put a charge on title that covers off every debt you have with them (ie. visa, loc), etc.

I just went through a horrendous nightmare with RBC who basically owned me (mortgage, insurance, car loan, some investments, loc). A small mistake on their part snowballed into a near disaster. Because so much of my financial life was tied up with them it was unbelievably easy for them to mess it up and very difficult to get them to fix it.
Yikes! That sounds like a nightmare. I do not have a collateral mortgage nor do I ever plan on getting one. I just so happened to get the best deal from my main bank for my mortgage so I pursued it. So far so good though...*knocks on wood*

Top

Thread Information

There is currently 1 user viewing this thread. (0 members and 1 guest)