Welcome to another insightful edition of Make Money Count, where we pull back the curtain on the Canadian banking system and reveal how the institutions we trust with our money are, quite literally, profiting off us every single day.

In this episode, Marcus Tzaferis & Justin dive deep into Net Interest Margins (NIMs), a term that might sound like boring financial jargon but is central to how banks make billions annually at the expense of everyday Canadians.

What Is a Net Interest Margin?

A Net Interest Margin (NIM) is the difference between what banks pay you to hold your money (like in a GIC or savings account) and what they charge you to borrow it (through mortgages, lines of credit, etc.).
For example, if you’re earning 2% on your GIC but being charged 6% on your mortgage, the bank is pocketing the 4% difference. Multiply that by millions of Canadians, and you’re talking massive profits.

The Numbers That Should Make You Angry

Let’s start with a stat that might just ruin your day: Canada’s big six banks earn over $1,500 in profit annually for every man, woman, and child in the country. Let that sink in. These aren’t revenues — these are profits.
And this profit is earned on the backs of Canadian consumers, especially when capital markets slow down. When corporations aren’t buying other companies or issuing debt, banks turn to you — the average consumer — to make up the difference.

Current Net Interest Margins by Bank (As of Q2)

• CIBC – 1.51%
• Scotiabank – 1.54%
• RBC – 1.61%
• BMO – 1.64%
• TD – 1.67%

These are proudly published in their quarterly reports as indicators of success. The higher the NIM, the more profitable the bank. And yes, the more money they’re making off of you.

Why Banks Don’t Want You Working with Mortgage Brokers

Banks love “sticky” customers — people who have multiple accounts, loans, investments, and services all with the same institution. Why? Because the more products you have with your bank, the more they can charge you in interest. In fact, according to the Bank of Canada, loyal customers often end up paying higher interest rates than those who shop around.

They don’t want you to go to a mortgage broker. Why? Because mortgage brokers negotiate on your behalf, leveraging bulk volume and market insights to get you the best rate, and potentially take you away from the bank entirely.

At Cannect, we negotiate the lowest possible mortgage rates for our clients — and not just once. We ensure your rate stays low over the life of your mortgage, helping you avoid penalties, unnecessary fees, and bad advice.

Penalties: The Hidden Profit Machine

Another dirty little secret? Prepayment penalties. When you break a fixed-rate mortgage early, banks often charge enormous penalties. But here’s the kicker: most of those penalties are miscalculated.
If your bank is throwing around a $50,000 penalty to scare you from refinancing, ask for the formula. Most won’t provide it. We have it — and we can plug your real numbers into it. Often, the amount you owe is far lower than what they claim.

The Retail Goldmine

Marcus highlights a TD Bank quarterly report that shows 30% of their total revenue — over $6 billion — comes from Canadian retail operations alone. That includes everything from chequing accounts to your mortgage. It’s also their most profitable segment.

At RBC, personal banking brought in $1.6 billion in income last quarter. Wealth management added another $1 billion. This is no accident — it’s a carefully engineered system designed to keep you comfortable, loyal, and quietly overpaying.

How to Fight Back

Here’s the truth the banks won’t tell you: everything is negotiable.

You have the power to:

• Shop around for a better mortgage rate
• Work with a broker who understands the system
• Challenge penalty calculations
• Ask your bank to justify fees and interest rates

If they push back or refuse to help — that’s where we come in.

At Cannect, We Help You:

• Refinance without paying massive penalties
• Negotiate the best mortgage rates — now and in the future
• Avoid hidden fees
• Structure your loan to be flexible and affordable
• Leverage your financial position like a pro

We help Canadians get smarter with their money — and stop overpaying just to sit on the “green couch.”

The big banks are doing just fine. Their shareholders are doing even better. But that doesn’t mean you have to keep playing their game.

It’s time to stop being comfortable and start being informed.

If you’re ready to renegotiate, refinance, or just get honest answers about your mortgage, Cannect is here to help.

Let’s make your money work for you, not the bank.

Need help now?

📞 Call us or visit Cannect.ca — no pressure, just real help.