Private Banking in Canada: What It Is, Who Qualifies, and What It Costs

Private banking might seem glamorous; something fit for a celebrity or a wealthy businessperson. The truth is, having a private banker is actually more common than you’d think.

As more Canadians are building wealth through real estate, business ownership, and investments, private banking is becoming increasingly relevant. 

To find out more about what it is, who qualifies, and how much private banking costs, keep reading.

Defining Private Banking

Private banking offers a specialized level of service within traditional banks. It’s for clients who have more complex financial needs. Instead of calling a general toll-free number or visiting a branch every time you need help, you work directly with a dedicated private banker who acts as your main point of contact. They are there to help you with anything related to your finances. Their job? To simplify your banking experience and make sure you’re getting the right products and advice based on your financial situation.

So, is a private banker the same as a regular banker? In short, no. While a standard banking representative can help you with day-to-day tasks like opening accounts or setting up payments, a private banker goes beyond that. They manage relationships, coordinate your finances, and proactively look for ways to support your goals.

A private banker also differs from a financial advisor. Advisors focus primarily on investments and long-term planning, whereas private bankers handle credit and banking needs. They also have access to a wider team of specialists.

Private Banking in Canada

The majority of Canada’s Big Six offer private banking as a premium service. Typically, clients work with a dedicated private banker who manages their day-to-day banking and credit needs while providing access to specialized teams. The goal of private banking is simple: to give faster service, tailored advice, and a more personalized approach than standard banking. Note that specific private banking structures may vary across institutions.

What Services Do Private Bankers Offer in Canada?

Private bankers provide a higher level of support compared to a traditional branch employee. Their services include:

• Direct access to a dedicated private banker
• Customized credit and lending solutions (both for personal and business financing)
• Organized wealth planning with access to investment, tax, estate, and financial-planning specialists
• Cash-flow and liquidity management with tools for coordinating income, deposits, business banking, and multi-currency needs
• Referrals to investment services (private bankers don’t manage portfolios directly)

Who Qualifies for a Private Banker?

To qualify for a private banker with a major Canadian bank, you generally need to meet one (or more) of the following thresholds:

• Investable assets in excess of CAD $1 million
• An overall net worth of CAD $3 million or more
• Credit volume of around CAD $2,500,000 or higher

Specific thresholds may vary by bank.

Benefits and Drawbacks of Private Banking

Private banking, like any other banking service, has notable benefits, but they come at a cost.

Advantages of Private Banking:

• Faster service and personalized guidance from a private banker who knows the details of your financial situation
• Preferential lending and custom credit solutions designed for those who need access to products beyond traditional mortgages and lines of credit
• Convenience from a single point of contact who is familiar with your situation and can connect you with a wealth-planning team
• Holistic, coordinated financial support

Disadvantages of Private Banking:

• Not necessary for clients who have standard borrowing and financial needs
• Asset or income minimums may be high for the average banking client
• Service quality varies by banker and institution

Do You Need a Private Banker?

Private banking offers a more personalized financial experience, but it isn’t right for everyone. It can, however, make a meaningful difference if your finances involve more than the typical banking client. If you manage multiple accounts, own several properties, have a business, or juggle different income streams, then a private banker can save you time by coordinating everything. They are also quite helpful if you regularly borrow for investments, real estate, or your business, as they can offer tailored credit products.

On the other hand, if your financial life is relatively straightforward, you may not benefit as much. For example, those who have one house with a single mortgage, standard savings, and typical investments can often operate sufficiently under the typical banking structure.

It is important to differentiate between private banking and private wealth management. The latter has explicit asset-based fees and involves investment portfolio management. Many Canadians find that an investment manager is helpful. Private banking, however, involves banking and credit services.

Ultimately, private banking is most valuable when your financial world is complex enough that unified support brings clarity and convenience.  

How to Choose the Right Private Banker

If you decide that private banking would be a good fit, the next step is to choose the right banker. This step is crucial. Not every private-banking experience is the same. Often, the quality of the relationship can determine how useful you feel the service is.

Begin by looking for someone who communicates clearly and responds quickly. Find a private banker who takes the time to understand your goals as it allows them to better anticipate your needs and find solutions that will work for you.

Some financial institutions offer large teams that support the individual banker. This often means access to specialists ranging from wealth management experts to those focusing on cross-border banking. While there are benefits, consider whether this is a better approach for you, or if you prefer a smaller team with more personalized attention. There is no right or wrong here. It’s about finding what works best for you.