Coercive tied selling is when a lender makes you believe your mortgage will not get approved unless you agree to buy other products and services from that lender. This is illegal under Section 459.1 of Canada’s Bank Act.
This is not to be confused with “Preferential Pricing,” which is when a lender gives you a better mortgage rate in exchange for you buying other financial products. Preferential pricing is also called bundled pricing. It might be offered, for example, if you open a new chequing or investment account when getting your mortgage.« Back to Glossary Index