Professional Homeloans Packages were formerly solely supplied by the key banks and had been only accessible to privileged borrowers who had been engaged in “so called” professional occupations i.e. legal professionals, medical doctors, engineers and accountants and who earned a minimum salary.
At present, most lending institutions make available Professional Homeloans Packages with no wage or earnings benchmarks and they’re openly recommended by Mortgage Planners as a result of the many benefits available throughout the package.
The major benefit for the borrower, is that in exchange for an annual payment, they are entitled to a lesser mortgage interest rate for the life of the loan, or for so long as they keep the package deal and pay the annual package fee.
The size of the homeloan interest rate discount associated with the package deal usually depends on the amount of the home mortgage or combined homeloans associated with the package. For instance, homeloan amounts between $250,000 and $350,000 could receive a reduction of 0.4%; $350,000 – $450,000 a reduction of 0.5%; $450,000 – $550,000 a reduction of 0.6% and so on with the maximum reduction typically being 0.8%.
As well as reductions to interest rates professional packages provide further options and benefits similar to nil Loan Application, Valuation and Legal fees; 100% Interest Offset accounts; Fee Free financial savings accounts; reduced Credit Card charges and interest rates; discounted Consumer Loan interest rates and reductions in premiums for Building, Contents and Landlord insurance.
Because a number of home mortgages could be combined in the same professional homeloan package deal, a borrower can vastly enhance their interest savings as well as additional savings from related package features.
At times it is a requirement of the lender; particularly when the lending institution is a banking institution; that a savings transaction account and/or bank card are taken as part of the homeloan package deal and are sought at the same time as the home loan application. Though this can appear as a deterrent, the savings associated with owning and applying these financial products and/or services as part of a home loan package can be appreciable and are seriously worth considering. Your mortgage loan broker can advise you on the most appropriate strategy for achieving the most benefits.
It made perfect sense that I would lower my interest expense by Refinancing Home Mortgage and selecting a Homeloan Package.
