For the time being, Scotiabank has shut the door—and double-bolted it—on discretionary broker-channel rate discounts.
Brokers are stuck quoting off Scotia's rate sheet, and any sweeter deal comes straight out of their own commission cheques via buydown.
But that's just the half of it.
On top of the freeze on discretionary pricing, brokers see Scotia’s retail reps quoting numbers well under what the broker channel is allowed to offer.
We just saw one three-year fixed quote come in 29 bps lower, for example.
"Max buydowns don't even get you close to branch discretionary rates," one broker told MLN.
In fact, complaints about Scotia’s recent pricing are piling up from brokers, and that naturally raises two questions:
- Why is Scotia operating with policies that foster discontent?
- What should brokers do about it?
We spoke with a range of opinionated sources to understand both sides of this dilemma. It turns out, it's an issue that requires perspective.
If you rely on Scotia as a broker, here's what you have to know.
