What Banks Do With Big Loans

Big loans, big banks. Hey, it's Aaron from Diagnostics and Finance. One of the things I found recently was when I went to a shop, I was able to buy a bunchload of stuff and get a discount. How does that work in the mortgage broking world? One of the things that may happen is that you may get one loan with one bank. It may be, say, $250,000. Then you go and buy another property and you get another 250,000 or even $500,000 worth of debt. Once we put that loan, say with the same bank that we went with for the first one, we start getting some incremental discounts. So just as I went to the shop, bought some lots of material and got a good discount, when you do the same thing with your mortgage, you get a bigger discount. So basically the banks are encouraging you to have more debt with them because they'll give you a bigger discount. It doesn't necessarily work for everyone. Some people have to put one loan with one lender out, another loan with another lender. That might be a period of time and circumstances are changed, or it might be due to the fact of the security, or it might be due to the fact of the income and the serviceability requirements. And if you check out the video from last week on the Triangle of Love, that can explain why we use different banks. But if we do use the same bank, let's go after the discounts, just as we would go to a store and get discounts too. Bye for now.