Have you ever dealt with GICwealth.ca ? | GIC discussions | Discussion forum

Yes. I have bought 4 GICs through them over the years. I have also been at their offices in north Toronto and met one of the VPs. They act strictly as a broker, usually for Ontario based CU.

I believe their main line of business is mortgage brokerage (GIC Wealth is a division of the larger entity).

As I said back in December, I have used them quite frequently with no issues. Having said that, there are still other options for dealing with institutions directly. For example, Accelerate Financial in Manitoba and Omnia Direct in southern Ontario are currently offering some better GIC rates. Also, the broker rates are sometimes lower than contacting the institution directly, although some institutions will only deal with brokers. GIC Wealth has been very good to me for service and reliability. I have no problem recommending them. Do your "rates homework" and then decide which route to take.

A few comments.

First, when I look at rates I generally look at the longer terms because I ladder my investments to get the best long term rates at the time. 2.85% for 5 years is about the best rate GIC I know about right now.

Second, it has been advantageous to have a broker because he/she may call you to let you know of unadvertised specials that their suppliers have going. That doesn't mean you cannot also make investments on your own. It's the best of both worlds.

Third, there is no logic in why some institutions will give the broker a better rate for their clients than the institution gives direct to the public or, in the case of credit unions, their members. I have had numerous discussions with the credit unions and one particular bank about this, stating that the members should get better rates than third party investors. One credit union actually listened to me and changed their policy, agreeing that the members should have first crack at the special rates. Another one was very adamant that they knew what they were doing by forcing members to deal with brokers in order to get better rates. There actually have been occasions when my broker had a good rate and I called the institution directly and asked them for a better non-broker rate, and they gave it to me. Never hurts to ask.

To me there is no logic to paying a broker to give better rates to outsiders rather than paying better rates directly to your members or previous investors. The only advantage to the institution in dealing with the broker seems to be the farming out of the application process.

Loonie said
...... It's a very inexpensive form of advertising and it is capable of bringing in a large amount of money in a hurry - ........

Question; When the broker calls you about unadvertised specials, do they offer you deals that are different from what they send you in email alerts?  

I read on one broker's website the finder's fee a broker receives from the FI on GIC's is 0.25%

The two brokers from whom I currently receive email alerts advertise the "rate specials" but do not indicate the issuer's name in the email. They disclose the issuer in a phone call.

The detail that is not advertised, however, is that some FI's will match the high rate offered by a competitor, through the broker. I've been able to use that advantage a few times with my principal GIC broker.

I just become a GIC Wealth Management client, and was very impressed (I visited their corporate office in Toronto). Kevin, one of the two partners, spent a lot of time with me and we talked about various GIC issues and strategies. He's a nice, smart guy who clearly has a lot of respect for the different reasons that people invest in GICs.

His firm is currently brokering a 5-year GIC @3% for a CDIC-backed firm in Toronto. Minimum investment is $50k. I believe they're offering 2.95% for min. $25k. And there are competitive rates for 3 and 4-year terms as well.

Aside from providing me a rate that I couldn't get on my own, there are 3 other things about this firm that matter to me (and might matter to some of you):

1. They're 'vendor agnostic.' Yes, I'm sure they have stronger relationships with some FIs compared to others, but they aren't restricted to a limited number of products. There's a 3-4 page list of FIs they work with.

2. There are no fees. They make their profit from the FI. It doesn't come out of my end.

3. They work with some FIs -- such as Equity Financial, also based in Toronto I think -- that doesn't sell directly to consumers. Currently, Equity Financial (also a CDIC member) is offering a 3-year GIC at 2.71%.

Anyway, this isn't an ad for this firm -- I'm just a client, but did want to chime in because my experience so far has been positive. Plus, I wanted to tell this community about the 5-year 3% deal. I just learned about it the day before yesterday through an email.