How banks can help you build your business

Yesterday I had a call from one of the banks which holds a mortgage on a rental property we own. Branch manager asked if we write off interest that is paid (this is an income property after all) and because we do, paying more interest would help us pay less taxes, right? For rental business they have a special offer – take higher rate (for example 5% instead of 2.99%), pay more interest, write it off and they will give you the difference as a cashback. I am definitely brining this one up in my next conversation with my accountant!

Banks quite often offer you creative solutions to keep your business. Just a couple of examples they can help you save:

-         Transfer existing mortgage from the property you are selling to a new property. This can become handy if there are quite a few years left on your mortgage and you don’t want to pay discharge penalty. New mortgage can be for the same or larger amount. In order to take advantage of this offer both closings have to be in the same month.

-         Offer you line of credit with attractive interest rate (sometimes less than the rate they offer on mortgages!) instead of refinancing, especially if your plan to go to a new bank.


-         Set you up with an automatic cash withdrawals. That way your tenants will never forget to give you a check and you will save time going to the bank to deposit them.

Bottom line, build relationship with your bank, talk to them, have them call you with new offers. They want your business, help them build yours!