Professional package home loans are a type of home loan that cater to people who are borrowing a larger amount of money, usually over $250,000 and who are looking for a range of offers including discounts on interest rates.
There is an annual fee of $300 to $400 depending upon the lender and in return they will offer substantial discounts on their rates and discounts on a range of additional services such as cheque accounts, insurance and credit cards.
Depending on the lender you may also be able to receive discounts on personal loans, margin loans & share market trading.
If you are looking to get more than just a home loan from your lender, Professional Package Home Loans can offer an excellent way to place several products together and save.
What Discounts on Interest Rates do Professional Package Home Loans offer?
Depending on the bank, professional package home loans often reduce the standard variable rate (SVR) by 0.5% to 0.9% and the fixed rates by 0% to 0.25%. Sometimes further discounts to the interest rates are offered in the case of larger loans over $750,000 or $1,000,000.
These discounts are standard and are offered without negotiation, by using a mortgage broker to negotiate on your behalf, these discounts can be as much as:
Loans over $250,000: 0.90% below the SVR.
Loans over $500,000: 1.00% below the SVR.
Loans over $1,000,000 & below 80% LVR: 1.03% – 1.10% below the SVR.
Loans over $1,500,000 & below 75% LVR: 1.15% + below the SVR.
Loans over $2,500,000: Discounts are negotiated on a case by case basis.
These discounts can also be accompanied by a reduction in a range of fees associated to the loan. The application fee will be waived along with other fees such as switch fees, extra valuation fees and loan split fees.
A further cost saving can be found with most professional package home loans also providing a fee free 100 % offset account.
Are Professional Package Home Loans suitable for me?
Professional package home loans are most definitely suitable for you if you:
Are intending to borrow a loan amount greater than $250,000. Most lenders can now offer a discount of 0.5% to 0.9% from their standard variable rate.
Want all your banking in one place and prefer to pay a single fee for all the services you require as opposed to paying fees for each and every service.
Don’t mind changing banks to get the best possible deal.
Professional package home loans are probably not for you if you:
Need to borrow less than $250,000.
Don’t need a range of bank products.
Don’t want to switch to a new bank.
So if you are looking for a home loan with discounted interest rates and multiple features then a professional package home loan is probably the right choice for you.