Are You Getting The Best Deal?

Do you want to improve the returns on your savings account, lower the cost of borrowing, or perhaps reduce your banking service fees?

All Canadians would be happy to achieve some or all of these objectives. The challenge for most people involves working with their local banker or bank manager to accomplish each goal. For instance, it is possible to negotiate a better-than-posted mortgage rate or GIC rate. However, two factors can create problems in the negotiation process:

1. Most people find it difficult to challenge a banker across the desk in an effort to obtain better rates.
2. The ability of your local banker to provide more favourable rates on all deposits and loans at the same time or within the same household could create a conflict of interest.

The Bank Manager's Dilemma

Banks generate profit by maximizing service fees and interest rate spread (the difference between a GIC interest rate and a mortgage interest rate). Therefore, if your local banker were to offer you the best rates, terms, conditions, etc. on every product or service, it would affect the bank's profits. If a consumer is fortunate enough to obtain a higher GIC interest rate, then it is safe to assume that the next person may not have the same access to these benefits. That next person could be you.

At IPC, part of our role is to develop a financial plan that includes your cash management and borrowing needs. As part of this service, our team shops the wholesale market each day to negotiate competitive interest rates, lower fees, and favourable terms and conditions on your behalf. This means you do not have to negotiate! We do the work and avoid the bank manager's dilemma by placing your banking business across multiple financial institutions. This automatic service minimizes the banks' interest rate spread and maximizes your savings.

Banking Relationship Review

We encourage you to challenge your current banking relationship by going through a unique process we call The Banking Relationship Review. This simple tool will help us:

• Measure your cash flow requirements to service your debts
• Allocate your short term cash effectively
• Minimize your debts faster or make them tax effective
• Maximize your short term savings rates
• Lower your borrowing costs

Our clients have saved thousands of dollars by obtaining better rates, negotiating optimum terms and enjoying superior service. Until recently, this type of service was reserved for wealthy individuals with private banking relationships. Our company has streamlined this process to help all our clients live their financial dreams.

If you would like to take advantage of a Banking Relationship Review, please contact our office for a consultation. One hour of your time could save you thousands of dollars.