About Coercive Tied Selling
Under section 459.1 of the Bank Act, financial institutions are prohibited from engaging in coercive tied selling. This means a customer cannot be pressured or required to obtain one product or service as a condition of receiving another.
In simple terms, financing cannot be made conditional on purchasing additional products a customer does not want.
For example, requiring a customer to transfer investments or purchase specific products in order to receive a mortgage or loan would be considered coercive tied selling and is not permitted.