Having a mortgage is an essential step on the path to homeownership. However, most banking institutions will also allow you to address some of your other financial needs as part of a packaged home loan.
A packaged home loan combines your mortgage with other banking services. A packaged home loan usually includes a credit card, mortgage offset account and savings or everyday banking account. Some packaged mortgages even offer additional services, such as financial planning and share trading if you’re looking for investment diversification.
Not all packaged home loans are the same, but there are similarities, such as interest rate discounts. This discount is often tiered depending on the amount you borrow. In other words, if you borrow more, you’ll earn a more competitive interest rate.
We mentioned earlier that 100% offset accounts are a common feature of many packaged home loans. An offset is a transaction account linked to your home loan. Any funds you save in this account will offset your mortgage principal and thus reduce the amount of interest you pay.
Whether it’s an offset account or some financial advice, the primary benefit of a packaged loan is that it combines a raft of financial products in one place. You will pay an annual fee for this convenience, often around $400.
But then again, the fee often replaces multiple other fees the lender charges for each product individually. So, be sure to weigh up the benefits and convenience of a packaged home loan and whether you’ll use all the products before assessing whether this is suitable for your financial situation.
As part of your decision-making, be sure to check with a finance specialist from Our Broker about the range of packaged home loans available to you. This specialist will ensure you find a packaged home loan with the most suitable products, interest rates and fees that meet your personal circumstances.
To find out more about home loan packages, contact Our Broker today on 1800 913 677.