Enjoying a solid income and a sterling credit rating? A professional package home loan could be for you.
Don’t let the name fool you, you don’t have to be a doctor or a lawyer to land a mortgage of this type. Different lenders have different qualifying criteria for these loans and most now base their decisions on the size of the loan and the income of the applicant.
A professional package home loan is a specially discounted loan for low-risk borrowers with good incomes who are typically borrowing large amounts of money.
Having said that, many lenders are now offering these packages on loans as little as $150,000, though with a small discount off the standard variable loan rate.
These interest rate discounts are directly related to the loan amount – the larger the loan, the bigger the discount. Borrowers can expect to see discounts of 0.2% to 1.0% off standard variable loan rates, depending on the lender.
Is there a catch with a professional package home loan?
There’s an annual fee of somewhere between $200 for a basic package and $750 for a ‘private banking’ client package – a package with all the bells and whistles for big loans.
The annual fee typically covers all application fees (regardless of the number of accounts you have), ongoing loan fees, transaction account keeping fees, annual credit card fees, and discounts on margin loans, personal insurance, financial planning, etc.
- Interest rate discounts on the standard variable rate
- You may be eligible for other benefits such as fee free transaction accounts and discounts on insurance products
- Some lenders waive establishment fees, ongoing monthly fees for your other loans and credit card fees
- Account usually offers many features, including redraw facilities, split loans, offset accounts, etc.
- The annual fee is fairly steep
We would be happy to go over the fine print of a professional package home loan to see if it is right for you and to discuss the possible savings you could be enjoying. Please feel free to call us today with any questions you might have!