Packaged home loans are offered by banks to people in a particular profession or those borrowing over a certain amount — sometimes it's over $150,000 but more commonly over $250,000. They were originally introduced to cater to high income earners but have now become more widely available to certain professional groups, those who need to borrow a higher amount or those who have a good relationship with the bank. Features include rate discounts, reduced ongoing fees, fee-free credit cards and transaction accounts.
Pros: you get a discounted rate not only on the home loan but benefits on other products as well, depending on the institution.
Cons: Resi mortgage warns that yearly fees for these packages are often around $300 and the benefit of the reduced interest might be much less. So make sure you get value for money. You're also tied to the one institution for a range of services which can be limiting.
Who they suit: These are great for people who need to borrow large sums or are a member of a particular professional group, says Senlitonga. It's also ideal for those who need a whole suite of products.
Loans worth a look: In our 2006 Best of the Best awards, Money awarded the gold gong for Best Home Loan Banking Package to Commonwealth's Wealth package which offers a 0.62 percent discount on the AAPR. Westpac's Premium package and Bank West's Gold Home Loan Package took out the silver and bronze awards respectively.
Pros: you get a discounted rate not only on the home loan but benefits on other products as well, depending on the institution.
Cons: Resi mortgage warns that yearly fees for these packages are often around $300 and the benefit of the reduced interest might be much less. So make sure you get value for money. You're also tied to the one institution for a range of services which can be limiting.
Who they suit: These are great for people who need to borrow large sums or are a member of a particular professional group, says Senlitonga. It's also ideal for those who need a whole suite of products.
Loans worth a look: In our 2006 Best of the Best awards, Money awarded the gold gong for Best Home Loan Banking Package to Commonwealth's Wealth package which offers a 0.62 percent discount on the AAPR. Westpac's Premium package and Bank West's Gold Home Loan Package took out the silver and bronze awards respectively.
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