This Wyth Financial review will tackle the different products that the digital bank offers and why using their services might just be the right one for you.
Evaluate Wyth Financial alongside the St. James’s Place Review 2023.
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Table of Contents
Introduction
You might have heard of Concentra Bank, which was founded decades ago in 1952. However, the name Wyth Financial may not immediately ring a bell. Nevertheless, they are one and the same financial institution. This is because Wyth Financial became the new trade name of Concentra Bank. It was relaunched just last year, in 2021.
Wyth Financial is considered the 13th largest bank in Canada when evaluated in terms of total assets. The teams running the financial institution are committed to upholding its tagline, “the bank that does.” This comes as no surprise since it has been listed as one of the best managed companies in the country for nearly two decades straight, or 18 years.
Read this Wyth Financial review to help you decide if this is the financial institution that meets your needs.
What Does Wyth Financial Offer?
Wyth Financial has different products for personal and commercial purposes. Let’s take a look at each one of them.
Wyth Financial Mortgage
Those looking to purchase a house to live in or rent out have the option of applying for a mortgage at Wyth Financial. The digital bank is open to finding the right solution for all types of customers, whether they are self-employed, first-time home buyers, or looking for assistance with their down payment.
You can also book a 30-minute Mortgage Needs Discovery Session with one of their Mobile Mortgage Consultants. They will guide you through the process of buying real estate and answer any other related concerns you may have.
They offer two types of mortgages, specifically, variable rate and closed-term fixed rate. The variable rate mortgage is a 5-year option where payments change based on the prime rate. On the other hand, those who prefer having a fixed rate also have an option for them. There are closed terms from 1 up to 5 years.
| Mortgage Term | Rate |
| 1 year | 3.14% |
| 2 years | 3.34% |
| 3 years | 3.69% |
| 5 years | 3.84% |
Wyth Financial also has a “rate hold” feature. This means that you can easily submit a rate hold when you open an account with them. After securing this rate, you can proceed with the application process. The mortgage rate submitted will be applied when the loan is approved. You will be given a grace period of 120 days for a new home purchase or 90 days for refinancing of an existing mortgage. When the duration expires, the rate you submitted will not be acknowledged anymore.
Variable rates range between 1.65% and 1.73%, but may change depending on certain conditions.
Wyth Financial Savings
For those planning to save, Wyth Financial also offers a High Interest Savings Account (HISA) with an interest rate of 1.55% per annum. To see how it compares to HISAs from other financial institutions, you can read more about it in this article.
There is no minimum balance requirement to maintain the account. At the same time, you won’t be charged any monthly fees. Because of its attractive features, it was rightly given the 2022 Personal Finance Award by Ratehub.ca.
| Minimum amount to earn interest | $0 CAD |
| Maximum amount to earn interest | $150,000 CAD |
| Amount insured by Canada Deposit Insurance Corporation (CDC) | $100,000 CAD |
Wyth Financial Investments
If you’re thinking about investing your money for a given amount of time, you can purchase a guaranteed investment certificate (GIC) at Wyth Financial. The very first step in doing so would be to open a HISA account with them. It shouldn’t take more than a few minutes of your time. When this is out of the way, you can fund your account and buy a GIC.
The minimum amount that you can invest in a GIC is $1,000 CAD, while the maximum amount is $150,000 CAD. You will not be charged any fees for your purchase. However, an internal transfer fee of $50 per deposit will be required should such activities be conducted. At the same time, interest earned from a GIC that is not registered will be taxed accordingly.
Your initial investment will be guaranteed and interest will be earned at a fixed rate. Currently, there are no variable interest rates being offered by Wyth Financial.
You will have the freedom to purchase as many GICs as you wish. Each GIC can be given a unique name according to your liking. This provides an organized approach to handling your finances since you can easily allocate your funds to the relevant accounts.
When your term has been completed, the principal amount and interest earned will be credited to your HISA. But you can also reinvest your money for another term.
| Term | Interest Rate |
| 1 year | 2.45% |
| 18 months | 2.60% |
| 2 years | 3.15% |
| 3 years | 3.55% |
| 4 years | 3.55% |
| 5 years | 3.60% |
Given the table, let’s see how much you can roughly earn by buying a GIC. If you invest $1,000 CAD for a term of one year, you will earn $1,024.50 CAD when it matures. Your earnings can reach as high as $1,193.44 CAD, but only if you leave your money for 5 years.
Purchasing a GIC is an easy way to invest your money. You just have to leave your deposit in the account and watch it grow.
However, it is only advisable for those who are certain that they will not need the money in the next couple of months or years. Canceling a fixed-term deposit can only be done within 30 days of the purchase or renewal. Fees of up to $100 CAD may be charged under certain conditions.
Apart from that, don’t expect to become a millionaire with this investment. Nevertheless, it may be suitable for those with a low-risk appetite and who have money just lying around.
Up to $100,000 CAD is similarly insured by the CDIC. Don’t worry about having two different accounts because the amount insured is applicable per category and per depositor. This means that if you have both a HISA and a GIC account with Wyth Financial, up to $200,000 CAD will be covered by the insurance corporation.
Commercial Banking at Wyth Financial
Wyth Financial also caters to mid-market commercial enterprises by offering lending solutions to them. At the same time, they provide assistance to businesses as they grow, change ownership, or move forward to bigger opportunities.
The First Nations of Canada are also welcomed with open arms at Wyth Financial. They offer loans intended to finance legal fees that have been incurred from settlements and claims with the government.
Lastly, they have commercial deposit solutions, an online currency trading platform, and flexible lease financing.
What Fees Does Wyth Financial Charge?
The tables below provide a bit of information on what types of transactions are charged and how much they cost. More details about the fees can be obtained prior to opening an account with them.
The following fees are applied to mortgages:
| Transaction | Fees |
| Appraisal of mortgage | $200 to $500, depending on geography |
| Enrollment of mortgage | $100 |
| Transfer of mortgage to a different financial institution | $0 to $380 |
| Discharge of mortgage | $0 to $380 |
Many services are offered for free when you maintain a HISA. But take note of the following that will come at a cost:
| Transaction | Fees |
| Withdrawal using Interac e-Transfers | One free transfer per month; $1.50 per transaction thereafter |
| Non-sufficient funds fee | $50 per occurrence |
| Stop e-Transfer | $5 per request |
| Bank draft | $50 per request |
| Tax slips | $25 for duplicate copies |
| Providing personal information | $25 |
| Transactional research | $150 per hour |
Lastly, fees related to investment accounts are often higher.
| Transaction | Fees |
| Cash withdrawals from registered retirement savings plan (RRSP) or registered retirement income fund (RRIF) | $50 per disbursement |
| Termination of RRSP, RRIF, or tax-free savings account (TFSA) before 1 year | $100 + 50% of interest earned |
What are the Pros of Wyth Financial?
- You don’t need a large amount of money to open an HISA account. Because there is no minimum requirement, you won’t be hindered from using their services regardless of your financial situation.
- They offer one of the highest interest rates in Canada.
- Many of their services, such as electronic funds transfers, deposits, and one withdrawal are free of charge. This can help you cut costs for your everyday banking needs.
- You can easily reach out to them through email or phone for assistance.
- They offer services to mid-market enterprises and First Nations.
- Your money is insured by the CDIC.
What are the Cons of Wyth Financial?
- Only a maximum of $150,000 will earn interest. You might want to consider other options if you have more money to invest.
Conclusion
Canadian citizens looking for options to invest in or take out a mortgage for their life milestone of owning property can consider Wyth Financial. With years of experience, responsive customer support, and attractive rates, this might just be the bank for you.
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