Buying a home is a major life decision. For many, one of the most important factors is the mortgage rate. In 2025, competitive Morgan Stanley mortgage rates, discount structures, and white-glove service make this bank a serious contender for high-net-worth borrowers.
This in-depth review covers everything you need to know: current Morgan Stanley mortgage rates, unique relationship-based discounts, eligibility requirements, and whether Morgan Stanley is the right fit for you.
Overview of Morgan Stanley Mortgages
Morgan Stanley isn’t a traditional mortgage lender. It operates through its private bank to offer residential home loans mainly to existing clients and investors.
What Is Morgan Stanley Private Bank?
Morgan Stanley Private Bank is a division of Morgan Stanley, one of America’s leading investment banks and wealth management firms. While best known for managing portfolios and executing trades, Morgan Stanley also provides home loans, especially to clients with existing investment relationships.
Unlike traditional retail banks, Morgan Stanley mortgages are highly personalized. They’re designed to integrate with your broader financial strategy, offering unique perks like securities-based lending and in-house servicing.
About Morgan Stanley Mortgages
The mortgage arm mainly serves clients who already invest or bank with Morgan Stanley, offering exclusive rate discounts to qualifying accounts. These are premium lending products tailored for individuals who manage sizable portfolios or conduct wealth planning with Morgan Stanley financial advisors.
Whether you’re buying a primary residence, second home, or refinancing an existing mortgage, Morgan Stanley offers:
- 30-year and 15-year fixed-rate mortgages
- Adjustable-rate mortgages (ARMs)
- Jumbo loans for high-value properties
- Home equity lines of credit (HELOCs)
- Pledged-asset loans to avoid liquidating investments
This makes Morgan Stanley mortgages best suited for clients with complex financial needs or substantial assets.
Morgan Stanley’s Mortgage Products
Now, after gaining a clear understanding of Morgan Stanley mortgages, let’s take a closer look at what makes each of their mortgage products and mortgage rates unique.
Fixed-Rate Mortgages
These are the most common types of loans Morgan Stanley offers, especially for long-term homeowners.
- Terms available: 30-year and 15-year
- Best for: Buyers who want predictable monthly payments
- Rate stability: Locked-in Morgan Stanley mortgage rate for the life of the loan
If you’re investing in a primary home and expect to stay put for a while, a fixed-rate mortgage offers long-term stability, especially when combined with Morgan Stanley’s rate discounts.
Adjustable-Rate Mortgages (ARMs)
Morgan Stanley also provides ARMs, where the interest rate is fixed for a set number of years and then adjusts annually.
- Popular terms: 5/6, 7/6, 10/6 ARMs
- Best for: Borrowers who plan to move, sell, or refinance within 5–10 years
- Initial Morgan Stanley mortgage rates: Usually lower than fixed-rate mortgages
ARMs can be attractive in a high-rate environment, especially for clients who prefer short-term financing strategies.
Jumbo Loans
For high-value properties, standard mortgage limits often fall short. That’s where jumbo loans come in with competitive Morgan Stanley jumbo mortgage rates.
- Loan size: Typically over $766,550 (may vary by state/county)
- Best for: Luxury homes, second homes, high-cost markets
- Special perks: Often paired with relationship pricing for significant savings
Most of Morgan Stanley’s mortgage clients fall into this category, using jumbo loans to finance real estate in premium areas like New York, San Francisco, or Miami.
Pledged-Asset Mortgages
This is a unique option offered by Morgan Stanley: instead of a traditional down payment, clients can pledge eligible investment assets to secure the loan.
- Key benefit: Avoid selling stocks, mutual funds, or bonds
- Minimizes tax impact: No capital gains realized from liquidating assets
- Maintains portfolio growth potential
These loans are a favorite among clients with large investment portfolios who want to stay fully invested while still purchasing property.
Home Equity Lines of Credit (HELOCs)
Morgan Stanley’s HELOCs let clients tap into the equity of their home for cash, without refinancing the first mortgage.
- Use cases: Renovations, education costs, investment opportunities
- Flexible draw periods: Access funds when needed
- Interest-only payments: Available during draw period
For clients with significant home equity, HELOCs offer liquidity while preserving low first-mortgage rates.
Portfolio Loans (Custom Financing)
Morgan Stanley can also design bespoke mortgage solutions for clients with complex needs. These loans may consider multiple income streams, asset-backed lending, or non-traditional property types.
- Ideal for: Entrepreneurs, business owners, or ultra-high-net-worth individuals
- Customization: Loan terms built around your balance sheet
- Serviced in-house: Better coordination with your Morgan Stanley advisor.
Current Morgan Stanley Mortgage Rates (2025)
The bank does not publicly list daily mortgage rates on its website like traditional banks. Moreover, it’s worth noting that these Morgan Stanley mortgage rates don’t come from a one-size-fits-all calculator. Instead, they are determined individually based on your:
- Loan type (fixed vs. ARM) and term
- Loan amount
- Credit profile (typically 740+ FICO)
- Loan-to-value ratio (LTV)
- Length of loan (15, 20, or 30 years)
- Your existing or new asset holdings at Morgan Stanley
- Debt-to-income (DTI) ratio
However, based on recent public documents and sample scenarios, here’s an illustrative benchmark of Morgan Stanley mortgage rates predictions:
| Loan Type | Sample Base Rate (before discount) |
|---|---|
| 30-Year Fixed | 7.00% APR |
| 15-Year Fixed | 6.75% APR |
| 7/1 ARM | 6.50% APR |
Note: Actual rates vary based on your profile and asset levels. Always consult a Morgan Stanley advisor for a quote.
Morgan Stanley mortgage rates 2025 remain highly competitive, especially for borrowers who qualify for relationship-based discounts (more on that shortly). Their rates also vary by loan type and client status. For example, a 15-year fixed loan may come with lower base rates than a 30-year term, and jumbo loans may receive tailored pricing based on assets held with the firm.
Relationship-Based Discount Program for Morgan Stanley Mortgage Rates
One of the most unique aspects of a Morgan Stanley mortgage is the relationship-based pricing model. The more you invest or bank with them, the more you can save on your mortgage rate, up to a full 1.00% off the base Morgan Stanley mortgage rate.
These rate discounts apply whether you’re purchasing a new home or refinancing an existing loan. Even better, they can be combined with any other pricing benefits you’re eligible for.
Here’s the discount structure as of 2025:
| New Qualifying Assets | Rate Discount |
|---|---|
| $500,000 – $999,999.99 | 0.125% |
| $1 million – $4.99 million | 0.250% |
| $5 million – $9.99 million | 0.375% |
| $10 million – $24.99 million | 0.500% |
| $25 million – $49.99 million | 0.750% |
| $50 million or more | 1.000% |
These are stackable on top of your regular mortgage pricing if you already have accounts with Morgan Stanley.
For example, let’s say you’re applying for a 30-year fixed mortgage of $1 million with a base rate of 7.00%. If you bring in $1 million in new assets, you get a 0.25% discount, lowering your rate to 6.75%.
Here’s a breakdown of how that translates into real savings:
| Discount Level | Monthly Payment | Annual Savings | Lifetime Savings (30 yrs) |
|---|---|---|---|
| No Discount | $6,653 | – | – |
| 0.125% | $6,569 | $1,008 | $30,240 |
| 0.250% | $6,486 | $2,004 | $60,120 |
| 0.500% | $6,321 | $3,984 | $119,520 |
| 1.000% | $5,996 | $7,884 | $236,520 |
Assumes a $1M mortgage, 740+ credit score, and 60% LTV.
This structure rewards wealth consolidation and offers clients a unique way to optimize both investments and borrowing costs.
And the best part? There’s no penalty for prepayment, and discounts apply to both purchases and refinances.
Eligibility and Application Requirements
To qualify for Morgan Stanley’s mortgage products and rate discounts, you’ll need to meet several criteria:
- Be a client of Morgan Stanley or E*TRADE (owned by Morgan Stanley) before applying
- Maintain a high FICO score (usually 740+)
- Provide qualifying new assets within 30 days before applying
- Ensure those assets remain in the account at least 10 business days before mortgage closing
- Apply for a primary residence or second home mortgage (no HELOCs)
- Not use mortgage funds for margin trading or deposits into brokerage accounts
Additionally, assets must be net new, meaning transfers from other Morgan Stanley platforms (e.g., from E*TRADE) do not qualify as new deposits.
Pros and Cons of Morgan Stanley Mortgage Rates
Next, let’s weigh the key advantages and drawbacks before you make your decision:
Pros and Cons
Advantages:
- Below-market rates, especially with relationship pricing
- Exclusive rate discounts for wealthy clients, up to 1.00% off mortgage rates
- Large loan sizes available, including jumbo and super-jumbo mortgages
- Integrated financial planning with your wealth manager
- Refinancing options that benefit from asset-based pricing
- Customized lending terms for complex borrower profiles
Considerations:
- Must have sizable investments with MS
- Not for first-time or average borrowers, not ideal for low-income households
- No online rate comparison tools
- High asset threshold required for the best discounts
Comparing Morgan Stanley Mortgage Rates with Other Private Lenders
Morgan Stanley mortgage rates and structure are comparable to other wealth-focused institutions like JPMorgan Private Bank or Goldman Sachs Private Wealth Management.
| Feature | Morgan Stanley | JPMorgan Private Bank | Goldman Sachs Private Wealth |
|---|---|---|---|
| Minimum Loan Amount | ~$500,000+ | $3 million+ | $1 million+ |
| Asset-Based Rate Discounts | Yes | Yes | Yes |
| Mortgage Types | Fixed, ARM, Jumbo | Fixed, ARM, Jumbo | Fixed, ARM, Jumbo |
| Public Rate Visibility | No | No | No |
| Online Pre-Approval | Limited | No | No |
Who Should Consider a Morgan Stanley Mortgage?
This mortgage option isn’t for everyone, but if you meet the following criteria, it may be one of the best lending solutions on the market:
- You’re a high-net-worth individual
- You already have or are willing to establish a relationship with Morgan Stanley
- You’re purchasing or refinancing a high-value home
- You want white-glove mortgage service and integrated financial planning
- You value long-term savings through relationship pricing
For clients looking to optimize their debt strategy as part of a larger wealth plan, Morgan Stanley offers a compelling value.
Expert Tips to Maximize Value from Your Morgan Stanley Mortgage
Getting a mortgage with Morgan Stanley offers more than just a low rate. It’s about using your entire financial relationship to your advantage. Here are a few smart ways to make the most of it:
- Strengthen Your Morgan Stanley Relationship: The more assets you hold with Morgan Stanley, the bigger your mortgage discount. Consider moving cash, investment accounts, or retirement savings into a Morgan Stanley account. This can bump you into a higher discount tier, potentially saving thousands over the life of your loan.
- Use Pledged-Asset Lending Instead of Cash: Don’t want to sell your investments to make a down payment? You don’t have to. With a pledged-asset mortgage, you can use your investment portfolio as collateral while keeping your money invested. It’s a smart way to preserve long-term growth and avoid capital gains taxes.
- Work Closely With Your Financial Advisor: Morgan Stanley Private Bank mortgage rates are customized. That means your advisor plays a key role in helping you gather paperwork, choose the best loan type, and decide when to lock your rate. A well-planned application can make approval faster and smoother.
- Always Compare Other Offers: Even if you trust Morgan Stanley, it’s wise to get rate quotes from at least two other lenders. This ensures you’re getting a truly competitive deal and gives you leverage when negotiating terms.
- Recheck Your Mortgage Every Year: Your financial situation and the market can change quickly. Revisit your mortgage annually, especially if you’ve added more assets, your credit has improved, or rates have dropped. You may be able to refinance and save even more.
FAQs About Morgan Stanley Mortgage Rates
Is Morgan Stanley a direct mortgage lender?
- Yes. Mortgages are originated through Morgan Stanley Private Bank, National Association.
What current mortgage rates does Morgan Stanley offer?
- Morgan Stanley’s 30‑year fixed-rate mortgages are averaging around 6.07% in early 2025, about 0.48% below the national average. Rates may vary based on loan type, amount, and your Morgan Stanley relationship tier.
How does Morgan Stanley’s relationship-based rate discount work?
- Morgan Stanley gives tiered mortgage rate discounts of up to 1.00% depending on your total assets with the firm. For example, clients with $50M+ in investments can receive a full 1% off the base rate. These discounts apply to both purchases and refinances.
Should I lock in my rate now or wait for Morgan Stanley mortgage rates to drop?
- Morgan Stanley research suggests a slight dip in mortgage rates through 2025–26, tracking Treasury yields. However, sub-4% rates are unlikely soon. If you’re eligible for strong relationship discounts, locking in now could secure meaningful savings.
Can I apply online?
- You must work directly with a Morgan Stanley advisor to apply. There is no public online application for mortgages.
If you’re a high-income individual or already work with Morgan Stanley for investments, their mortgage solutions are hard to beat. With competitive base rates, up to 1% in relationship discounts, and a premium client experience, this lender offers substantial value, especially for large home purchases. While not suitable for everyone, Morgan Stanley’s home lending program exemplifies how wealth management and real estate finance can work together.
