Originally Posted by
mmonster
It is a very straight forward calculation to me, interest that you earn from mortgage is a lot more than the so-called annual fee. I could jump from one promotion to another without any issues. There are always something out there and I really hate banks that do not want to listen.
Although IMO a home loan is more profitable for a bank, it is not a very straight
forward calculation. Not all the interest you pay on the home loan is 'profit' to the bank, there are cost of funds, risk, overhead etc that a bank has the profit margin can be quite small, under 1% depending on the rate and the current market rate....of course offset by the high home loan balance. CC users who pay off the monthly balance do not earn the ban much, the banks receives a small bit of revenue from the issuer for each transaction, of which the bank must cover all their costs including any rewards scheme they have.
But as
Etham said different products and product owners so less likely to take a whole of customer point of view.