Quote:
Originally Posted by kunkstyle
Apologies if this is kind of a ****ish question, but can one negotiate the bank rate in this case?
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Absolutely you can, but do you know where it can be negotiated to? (And no, that's not a ****ish question at all).
For example, my business partner just showed me a renewal letter that his client got from his current bank (one of the big banks). They offered the Canada benchmark rate for renewal options...THE BENCHMARK RATE! So they offered 4.79% on a 5 year fixed term. I'm sure most people would realize there is better out there, but I'm also sure that some would just "sleepwalk through renewal" and sign the dotted line. If you were aware that the rate is too high and were able to negotiate it down, would you know how far they would go? Ie. you may get them down to 3.09%, but I can tell you as per my daily rate sheet that they are offering 2.99% in the broker channel.
Make sense?