If you’re home shopping in a housing market marked by high interest rates and startling home prices, like the one right now, you’re likely comparing mortgage rates and lender fees, and hunting for any opportunity to stretch your budget and maximize interest savings. And over the past few years reviewing mortgage lenders, I’ve noticed various banks offering mortgage relationship discounts that can do exactly that. Depending on the program, these perks can help lower your rate, trim closing costs or reduce lender fees.
If you’re already planning to get a mortgage through your bank — or considering opening an account at a new one — a relationship discount could shave thousands of dollars off your borrowing costs over the life of your loan.
While requirements vary by financial institution, a mortgage relationship discount generally requires borrowers to take out a loan with a bank while also maintaining a qualifying bank or investment account there. Some lenders reserve these discounts for existing customers, while others use them as an incentive for new customers to move assets over.
Banks often require a minimum deposit to qualify for mortgage relationship benefits, though, and that threshold can be as low as $25 or climb into the tens — or even hundreds — of thousands of dollars. Many banks also use tiered programs, with customers who maintain larger balances qualifying for deeper discounts, along with additional banking perks.
