10 Things Your Banker Won’t Tell You

Written by Bill, BK Home Broker — August 13, 2026

A bank is a business, and its goal is to make a profit, not to find you the best deal. Bankers aren't dishonest, but they can only sell their own bank's products, and they're incentivised to sell more of them.

Here are 10 things worth knowing before you take a banker's advice at face value.

1. Bankers Can Only Sell Their Own Bank's Products

A banker won't mention the better loan across the street. Their job is to sell what their employer offers — not to find the best deal in the market.

2. Bankers Are Salespeople, Not Neutral Advisers

Bankers are incentivised to push loans, credit cards, and insurance. The more products they sell you, the more the bank makes.

3. Banks Operate Through Three Tiers of Service

• Front door (retail): everyday mum-and-dad customers

• Business banking: larger accounts, more sophisticated advice

• Institutional banking: reserved for the "big end of town"

Which door you walk through determines the level of advice and negotiating power you're offered.

4. Mortgage Rates Are Negotiable

Rates aren't fixed in stone. Push back, and most banks will shave something off rather than lose your business.

5. An Offset Account Usually Beats a Term Deposit

Parking cash in an offset account saves you interest at your mortgage rate — often a better return than any term deposit.

6. Bank Fees Are a Major Profit Source

Fees are one of a bank's largest revenue streams, which is exactly why they're not promoted or explained upfront.

7. Many Fees Can Be Waived — If You Ask

Simply asking the question is often enough. Many fees disappear the moment a customer pushes back.

8. Bank Staff Aren't Financial Advisers

Bank staff are trained to sell banking products, not to give holistic financial advice. Don't mistake a sales conversation for independent guidance.

9. Your Loan Application Is Decided by "The System"

Forget the friendly manager at the desk — your application is reduced to a number in the bank's credit-scoring system.

10. Loyalty Doesn't Guarantee the Best Deal

Many customers assume loyalty is rewarded. It isn't. Shopping around almost always uncovers better terms than staying put.

Quick Reference: What Banks Won't Volunteer

FAQs About Dealing With Your Bank

Can I negotiate my mortgage rate with my bank?

Yes. Mortgage rates aren't fixed — most banks will reduce your rate rather than risk losing your business, especially if you have a competing offer in hand.

Is an offset account better than a term deposit?

Usually. Money in an offset account reduces the interest charged on your mortgage at your mortgage rate, which is typically higher than what a term deposit pays.

Are bank staff financial advisers?

No. Bank staff are trained to sell their bank's own products, not to provide independent or holistic financial advice.

Why would I use a finance broker instead of going directly to a bank?

A broker compares products across multiple lenders rather than just one bank's range, and can negotiate on your behalf — levelling the playing field a single bank can't offer.

Do banks reward customer loyalty with better rates?

Not reliably. Existing customers often pay more than new customers get offered, which is why regularly shopping around tends to uncover a better deal.

Banks aren't the enemy, but they're not on your side either, their job is to maximise profit. Your job is to shop around, negotiate hard, and, ideally, work with a skilled finance broker who can level the playing field. - Kate Forbs

Looking to compare loan options for your next house-and-land package or apartment purchase?

Talk to BK Home Broker about lenders who actually compete for your business.