If you have $5M or more in investable assets and you're shopping for a mortgage, a credit line, or both, you're getting quoted differently than you were two years ago. Several private banks and wealth platforms have been competing on lending terms for high-net-worth borrowers, and the offers are worth paying attention to.
Why now? Lending has become one of the primary ways banks acquire and retain wealth management relationships. A below-market mortgage or a flexible credit line gets assets in the door, and once custody, investment management, and lending are all under one roof, clients rarely move. Wealth platforms are fighting for that consolidation, and lending is the sharpest tool they have.
What's on the table varies by institution, but the common themes are below-market mortgage pricing, interest-only structures on jumbo loans, and portfolio lines of credit with more favorable terms than standard brokerage offerings. Some banks are packaging lending with custody and investment management, offering rate discounts if you consolidate assets with them.
On the mortgage side, some private banks are pricing 15–30 basis points below published jumbo rates for borrowers who meet their asset threshold. On portfolio lines, the competition is around advance rates and concentration policies, with some lenders incrementally more flexible on alternative holdings as collateral, though alternatives are still typically heavily discounted or excluded.
The flexibility often comes with tighter collateral monitoring and the potential for margin calls in volatile markets. Consolidating your lending, custody, and investment management at one bank also gives them pricing power at renewal and creates operational dependency. If the relationship changes or the bank adjusts its strategy for your segment, unwinding can be time-consuming.
For investors who are already borrowing or planning to, getting competitive quotes from two or three private banks is worth the effort. The lending market for this segment is more favorable to borrowers right now than it has been in recent years, and the terms are negotiable in ways that standard retail lending isn't.
For educational purposes only. Not tax, legal, or investment advice.