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Would a basic home loan be a suitable option for me?

Posted: Mon Aug 18, 2014 6:27 am
by alexjong
Hello and good afternoon. I’ve been considering getting a mortgage to buy a property in Toowoomba but I’m not sure what loan option to choose. Right now, I’m very much interested in a basic home loan. Can anyone tell me whether a basic loan would be a suitable option for me or not? I also want to know about the basic loans that are currently offered in the market.

Re: Would a basic home loan be a suitable option for me?

Posted: Mon Aug 18, 2014 10:20 am
by Otto Dargan
Hello alexjong. Welcome to the forums.

Basic home loans may not be suitable for all borrowers. In many cases, they may not have the same special interest rate discounts for people borrowing more than $1 million.

Simple loans may be best suited for:
  • Loan amounts less than $250,000 - If you get a basic loan then you may be able to get an interest rate below the standard variable rate although you do not qualify for a professional package discount.
  • People who do not need extra features - If you are not going to use the features of a professional package then you may benefit from getting a basic home loan. This way, you may only pay fees for what you need and want, at a lower cost.
  • People who want to change lenders - Other loan types may often come as a package. If you want to refinance in the future then there may be no point in getting such additional products with your loan.
  • Simplicity - A basic loan may suit your need if you find dealing with your money to be too complicated and just want a simple and easy to use solution.
Basic home loan interest rates and fees may vary from lender to lender. However, all the major lenders offer similar features for their basic loans. Some common basic loan products may include:
  • CBA - Three-year special rate saver.
  • Rams - Basic home loan.
  • Westpac - Flexi first option.
  • St George - Basic home loan.
  • Suncorp - Back to basics.
  • ANZ - Simplicity plus.
  • NAB - Base variable.
Did this answer your question?

Cheers,
Otto

Re: Would a basic home loan be a suitable option for me?

Posted: Mon Aug 18, 2014 4:16 pm
by alexjong
Yeah, thanks. But now my friends have suggested me to apply for a professional package instead. They said that the benefits it provides may prove to be extremely useful to me. What type of benefits are we talking about here?

Re: Would a basic home loan be a suitable option for me?

Posted: Tue Aug 19, 2014 9:02 am
by Otto Dargan
Hi alexjong,

A professional package is a home loan feature where a single annual fee is paid in return for discounts on a range of products and services from your lender.

In most cases, you may be able to receive some benefits like:
  • Waived application fee.
  • Waived monthly fee on your loan.
  • Waived valuation fee.
  • Interest rate discounts from 0.5% up to 0.9% depending upon the lender, loan size, and the market.
  • Waived monthly fee for your cheque account.
  • Waived annual fee for a credit card with rewards.
  • Discounted insurance products.
  • Special service / higher level of service from the lender.
It should be noted that in most cases, a professional package may be more suitable for large loans i.e loans more than $250,000. They may also be suitable for people who have multiple products with a single lender.

You can have a look at our website to learn more about this. If you want to talk to us directly then you can call us on 1300 889 743 or you can enquire online.

Cheers,
Otto

Re: Would a basic home loan be a suitable option for me?

Posted: Tue Aug 19, 2014 3:53 pm
by alexjong
Well, that does seem like a good offer to me. I’m still considering what action to take so I’m in no hurry to do anything. Once I’ve decided what to do, I’ll give you a call to discuss it. I thank you for taking out the time to answer my question. Have a good day.

Re: Would a basic home loan be a suitable option for me?

Posted: Thu Nov 20, 2014 3:01 pm
by airenwaren
Hello everybody!

I’ve been considering getting a professional package and I want to know the benefits that are covered by the single annual fee. Is there anyone who can clearly explain this to me?

Re: Would a basic home loan be a suitable option for me?

Posted: Fri Nov 21, 2014 9:01 am
by Otto Dargan
Hi airenwaren,

The annual fee for a professional package may usually cover different benefits such as:
  • The requirement to pay only a single annual fee regardless of how many different loans you may have.
  • No ongoing fees or hidden fees on the loan.
  • Discounts on products such as home insurance, personal insurance, and financial planning.
  • The possibility of waiving most of account keeping type of fees on your transactional accounts.
  • The possibility of waiving the annual fee on your credit card.
These annual fees may range from $300 to $750 depending upon the type of professional package that you apply for. If you want to learn more then you can give us a call.

Cheers,
Otto

Re: Would a basic home loan be a suitable option for me?

Posted: Fri Nov 21, 2014 5:23 pm
by airenwaren
Hello Otto,

Thanks for replying so soon. I’ll continue looking into it for now. I’ll call your office if I have any confusions. Cheers :)