Marketing mortgage is an interesting field. There are many effects and side effects of mortgage marketing and we are going to look at an interesting one.
Recently BMO blew a bang in the mortgage market with its 2.99% five years fixed. Not sure how many really went in and took a mortgage from them but it kept people talking about it. Banks like TD, CIBC and RBC had to come up with their version of a counter offers. (brokers were and are offering lower rates though)
BMO’s aggressive marketing strategy produced unknown results but its chief got a pay cut recently.
The effect this marketing strategy had – was on the on-line search volume.
During this time of the year usually search volume start to pick up and reaches its peak by mid or late April (this varies place to place). Fortunately this year – the banks marketing effort – jump started the season at-least on-line.
Do you see the jump in the search volume?
Now check the other one out – Search volume for “first time home buyer” It did see a jump and then immediately died out.
You think the bank did not know this? They sure did.
This low rate offer will all but disappear when the real buying season starts. It was nothing but a marketing effort targeting the buyers who will enter the market later when the real season starts.