What are the disadvantages of tying with a single lender?

Any general questions you might have in regards to loans and finance.
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Otto Dargan
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Re: What are the disadvantages of tying with a single lender?

Post by Otto Dargan »

Hello chapati. Welcome to the forum.

Yes, they’re right to some extent. Although Commonwealth Bank (CBA) is one of the largest banks and is very popular in terms of home and personal loans, there are several risks of being tied up with one lender. You may face certain difficulties such as:
  • Being limited by your bank's product range and expertise: It is rare for a single lender to provide services that cater to home, business, and investment needs simultaneously. One lender may be more suitable for commercial loans while another may be better for home loans.
  • Risk management: Having all of your properties, savings accounts and other credit accounts with one lender can be risky. It is because they'll have complete control over your situation if you ever experience financial hardship.
  • Lending policy: Your current lender may have a tight level of risk compared to other lenders on the market, particularly when it comes exposure and property types, which can stifle your investment plans.
  • Existing customer pricing: Having more than four products with one lender means you're a "sticky" customer but it doesn't necessarily mean lenders reward loyalty with cheaper interest rates and fees!
Our high net worth client package ensures that you continue to receive the discounts that the banks are offering their new clients, without the need to refinance your loans to another bank.

We have a lender panel of almost 40 lenders and we can help you diversify your portfolio so you have the right mortgage mix for your property types

You can enquire online or give us a call on 1300 889 743 to find out how we can assist you.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

User avatar
Otto Dargan
Mortgage Specialist
Posts: 7730
Joined: Sat Sep 06, 2008 5:55 pm
Location: Sydney, Australia
Contact:

Re: What are the disadvantages of tying with a single lender?

Post by Otto Dargan »

Hi chapati,

Private banking allows you to have your own banker, thus separating you from mass-market clients who have to deal with the bank’s call centres and branches whenever they need assistance.

Please note that this is not a service offered by all lenders. The following lenders offer private banking in Australia:
  • Commonwealth Private Bank.
  • Westpac Private Bank.
  • ANZ Private Bank.
  • NAB Private Wealth.
  • St George Private Clients.
  • BankWest Private Bank.
  • Credit Suisse Private Banking Australia.
  • Macquarie Private Bank.
To qualify for private banking, you typically need to have around $2.5 million in deposits or lending, and an income of at least $250,000 per annum. These income requirements vary from lender to lender.

If you would like to know more about private banking then you can check out our website. You can also speak with one of our experts directly by calling 1300 889 743 or by enquiring online.

Cheers,
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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