Canadian Tire Financial Services announced recently that they would be saying farewell to their Mortgage Department.
In a press release, Canadian Tire stated they would be selling their mortgage portfolio of about 1000 mortgages to National Trust, in a transition that will take place early next year.
For a national company, 1000 mortgages is three years is a relatively small number, so it makes sense that Canadian Tire would let it go and focus on the stronger elements of their financial services offers. The Canadian Tire MasterCard, for example, is the most popular credit card in Canada. They’ve also been notably aggressive in savings and GIC rates.
The mortgage business is tough, so while it’s understandable Canadian Tire would exit the arena, it’s a little disappointing. The offer of the One and Only account was a sound premises that I was hoping would kick start a mortgage revolution. Using your everyday banking to beat back interest on a mortgage is a great resolution for Canadians who are more prone to spending than saving.
Alas, with Canadian Tire’s announcement, that leaves Manulife and National Trust to dominate the market of interest offsetting mortgages.
