When it comes to refinancing or restructuring your debt, most people trust their bank to guide them in the right direction. After all, banks are supposed to have your best interests at heart, right?

Unfortunately, that wasn’t the case for one Canadian couple who ended up in a costly and completely avoidable financial mess. In this recent episode of Make Money Count, Marcus and Justin discuss a shocking story from The Globe and Mail about a couple who turned to their bank for help, only to get… let’s just say, seriously burned.

The Setup: A Simple Debt Consolidation Plan

It started innocently enough. The couple approached their bank, CIBC, to consolidate their unsecured debt. The goal was straightforward: reduce interest payments, simplify finances, and get into a healthier financial position.

The bank said all the right things. “We’ve got your back,” they told the couple. Legal fees? Covered. A better mortgage package? No problem. Even a streamlined closing process through their affiliated closing service. Sounded great, right? But that’s where things went sideways.

The Twist: A Surprise Payoff No One Asked For

During the closing process, the bank’s closing service decided, without the couple’s knowledge or consent, to pay off a 0% interest loan they had from the First-Time Home Buyer Incentive (FTHBI) program (sometimes referred to as a CHC or CMHC loan).

This loan wasn’t even included in the signed mortgage commitment. It wasn’t costing them anything in interest. But it was suddenly paid off using the new mortgage funds, increasing their overall debt and wiping out a key financial advantage.

And the worst part? The couple didn’t realize what had happened until after everything was finalized.

Who’s Responsible? No One

When they tried to get answers, everyone involved pointed fingers elsewhere.

• CIBC said it’s standard procedure to pay off those types of loans when refinancing, especially if the new mortgage pushes the loan-to-value (LTV) over 80%.
• The title company and closing service? Silent.
• The couple? Left paying off a debt they never wanted to touch.

No one took responsibility, and the couple was stuck with the consequences.

The Real Lesson: Don’t Go It Alone

This story isn’t just a one-off horror tale. It’s a reminder that banks are not financial advisors, and they certainly don’t always act in your best interest.

If the couple had worked with a mortgage broker, this never would’ve happened. A broker would have:

• Reviewed the commitment carefully
• Flagged the 0% loan for what it was, an asset, not a burden
• Worked with your best interest in mind, not the bank’s

When You Need a Mortgage Ally, We’ve Got Your Back

At Cannect, we do more than just shop rates. We advocate for you. We make sure every move benefits your financial future, not the bank’s bottom line. Whether you’re looking to refinance, consolidate debt, or access your home equity, don’t make the mistake of going it alone.

Talk to a Mortgage Expert Who Works for You

Don’t let a poorly structured refinance wipe out your savings or set you back years. If you’re thinking about making changes to your mortgage, get in touch with Cannect today.

📞 Book a free consultation and let us help you make a smart move, not a costly mistake.

Watch our Make Money Count videos to gain more insights.