Special Options and Coercive Tied Selling
(forced purchases)

When you buy a house, you may be shopping around for more than one financial product. In addition to a mortgage, you may be looking for house insurance, life or disability insurance, a line of credit, etc.

Most financial institutions can offer products and services to complement your mortgage. Some lenders may even offer you better conditions on your mortgage if you take mortgage life insurance through them, or if you transfer your investment portfolio to them. Although such offers may seem interesting, it is a good idea to get quotes from other providers of these services and products, to ensure you get the best deal.

Remember that if you renew your mortgage or transfer your mortgage to another financial institution, the special options (e.g., your life/disability insurance) will not automatically be renewed or transferred with the mortgage. You might have to re-apply for these options.

Also, don't forget that, in accordance with federal law, a federally regulated financial institution cannot apply undue pressure on you to buy another of its products as a condition for accepting your mortgage application. If you have experienced this type of "coercive tied selling" at a bank, do not hesitate to contact FCAC.

Find out more about the New Concept Mortgages.

Source: FCAC
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