Commercial Banking

[Spider]

Hi

I have been banking with the same bank for some time now, I realise I have done something wrong but that was due to inexperience, I would now finance my properties differently if I was to start again. But I do have a plan in place to insure this issue is resolved in the next 3 years. ie. move my property to other backs...

My current issue is that I have just been place in commercial banking, I was very happy with the horse bank, as the contact person I had was great and got me everything I wanted. But now I am dealing with a new system and a new person.

After taking out a new loan close to 500,000 I just found out I have not got my usual deal, ie no application fee, no $1000 towards legal costs.......
When questioning this with my guys PA who is not the most helpful of people, the reply was you are in commercial now and we don't do those benefits. Anyway Long story short I am talking to my guy next week (as he is away) and want to know how hard I should push for these benefit that I had been taking for granted... I know slack negotiating on my part not getting this sorted before hand..... I do have some power like the fact I have a mortgage coming up in November and will be looking around at other banks and moving it.

Who else is in commercial banking and should I be pushing this one or just move on to other banks and learn never get this high up in banking again.

Lesson learnt.

Angela

[Dean@Massiveaction]

Hi Angela. I strongly recommend using a broker to stop these things happening. However if you love doing your own finance you need to take a couple of your existing mortgages away from your bank so that you get under the threshold for commercial and get them to return you to your domestic status!!

[captaincrab]

Deans advice as usual is spot on. Divide and rule is the strategy. Split the portfolio up amongst a few banks.

[roseneath_rat]

Depends on whether the concessions you get in interest-rate reductions balance out the 'carrots' like solicitors fees & the like.

If you are in a preferential banking arrangement with say an extra 0.4% discount on rates, then on a $500K loan you're already saving an extra $2,000 per year in interest. Isn't that worth more than a $1K one-off sweetner?

[Dean@Massiveaction]

That's true rat but the issue often is more about the person you are dealing with being different. I was asked to go to commercial with one of my banks but that meant losing my personal banker of 5 years. He had gotten many things through for me that were non complying and losing him would have affected my flexibility with them.
Also commercial lending rates are often higher.

[Monkeyboy]

You still can get discounts using a broker. The only real benefit of being in commercial is that their discretions are usually a lot higher so the person you talk to can often approve at levels a lot higher than personal banking. And in commercial they can waive fees just like at the personal level if they want to.