What is a professional package home loan?

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Jacques
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Joined: Wed Jul 03, 2013 2:23 pm

What is a professional package home loan?

Post by Jacques »

Hello experts,

I’m a sales associate at a store with an annual salary of $65,000. I’m looking to buy a unit valued at $570,000. I need a home loan to cover most of it because I have only $90,000 in my savings.

I heard from a friend that I can get a professional package on my home loan with discounted interest rates. Can anyone in this forum tell me what a professional package is and whether or not it will be suitable for me?

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Otto Dargan
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Re: What is a professional package home loan?

Post by Otto Dargan »

Hi and welcome to the forums Jacques.

A professional package home loan is primarily the type of loan where you pay an extra fee in exchange for a range of premium services and discounts on the lender’s services. The fee for a professional package may range from $300 to $750 and is paid once a year. This also means that you may not be charged any other hidden or ongoing fees.

A professional package may be more suitable for people borrowing $500,000 or more. This is because lenders tend to give you larger discounts for larger loan amounts. Usually, if you are borrowing less than $250,000 then a professional package may not be suitable.

It should be noted that depending on the lender that you apply with, you may get a 0.5% to 0.9% discount on the variable rates. If you want a fixed rate then you may get a discount of up to 0.25%.

Aside from the interest rate discounts, a professional package loan may also allow you to get a discount on the lender’s other products. These discounts may include home insurance, personal insurance, and financial planning services. Moreover, lenders may offer discounts on personal loans, margin loans, and share market trading.

Depending on the lender, you may also get a free offset account which can help you reduce your interest even more.

Cheers,
Otto
Otto Dargan
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P | 1300 889 743
Home Loan Experts

Jacques
Posts: 51
Joined: Wed Jul 03, 2013 2:23 pm

Re: What is a professional package home loan?

Post by Jacques »

I had no idea that I could get a discount as well. Thanks for the info, mate. Can you also tell me which banks offer these professional packages?

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Otto Dargan
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Re: What is a professional package home loan?

Post by Otto Dargan »

Hi Jacques,

Various lenders offer professional packages. Here are some of them:
  • CBA – MAV Package line of credit / MAV standard variable OR Wealth Package.
  • Rams – Line of credit professional package / Smartway professional package.
  • Westpac – Premier advantage rocket repay home loan & investment loan.
  • St. George – Advantage home loan package portfolio loan / Advantage home loan package standard variable rate home loan.
  • Suncorp – Money manager standard variable / Money manager asset line.
  • ANZ – Professional benefits package standard variable / Breakfree package standard variable.
  • NAB – Tailored home loan under the choice package.
Along with the different names, the fees and the discounts may also vary although the features offered will be similar.

You can have a look at our website for more information regarding all of this. If you would like more help finding a suitable professional package home loan then you can contact us on 1300 889 743. You can also fill in our free assessment form.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

Jacques
Posts: 51
Joined: Wed Jul 03, 2013 2:23 pm

Re: What is a professional package home loan?

Post by Jacques »

I hadn’t realised just how much a professional package could benefit me. Thanks a lot for clearing that up, Otto. I’ll give you a call tomorrow morning to discuss which lender to go for. Goodnight, mate!

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totoro
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Re: What is a professional package home loan?

Post by totoro »

Hey,

I’m planning to get a professional package home loan and was going through this thread for some information. You mentioned that it may be possible to get a free offset account with a professional package. Can you please explain how such an account works?

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Otto Dargan
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Re: What is a professional package home loan?

Post by Otto Dargan »

Hi totoro,

An offset account may help you save more money by reducing your total interest payable. You may set up an offset account when you get a loan and any money you put in your offset account will reduce the amount on which you will pay interest.

For example, if you have $200,000 in your offset account and you have a home loan of $600,000 then you will be paying interest only on $400,000.

Furthermore, the interest rate of home loans is usually higher than that of savings accounts. This means that you may be paying more interest and saving less if you choose a savings account instead of an offset account.

It should be noted that offset accounts may be offered together with the professional package home loan for free. If you want more information about this then you can call us directly and one of our experts will clear it up for you.

Cheers,
Otto
Otto Dargan
Mortgage Broker
P | 1300 889 743
Home Loan Experts

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totoro
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Re: What is a professional package home loan?

Post by totoro »

I think I’m clear about offset accounts now. I’ll also go through your website. I’ll definitely give you a call if I get confused with something. Anyways, thanks for your help, mate!

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