A professional package is the loan that is best for borrowers who want to loan larger amounts of money, which is usually over $250,000.
Usually there is a annual fee that prices around $300 to $400 that is charged by the lender and in return they will offer a significant interest rate discount and also discounts on a range of additional services such as cheque accounts, insurance and credit card facilities.
It depends on the lender, but you may also be able to receive discounts on personal loans, margin loans, share market trading and also receive premium service from the lender.
Overall this loan is best fitted for people who are looking to get more than just a home loan from their lender, the professional package can offer an excellent way to bundle several products together and save.
What are the advantages of the professional package?
The advantage of the professional package varies depending on the bank; they often reduce the standard variable rate by 0.50% to 1.10% and the fixed rate by 0% to 0.25%. Occasionally further discounts to the interest rate are offered this is in the case of larger loans over $750,000 or $1,000,000. On top of that, all of this is usually accompanied with a reduction from a range of fees that associate with the loan.
The application fee will generally be waived and a variety of miscellaneous fees such as switch fees, extra valuation fees and loan split fees are also waived. What you will also find with most professional packages is that they’re equipped with free fee offset accounts which would enable you to reduce the interest you pay even further.
Which Lenders have Professional Packages?
From lender to lender the interest rates and fees that can be offered for a basic home loan will vary, however all the major banks offer similar features for their professional packages.
Some common basic loan products are:
- 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
- And many more…
What Annual Fees do I Have to Pay with the Professional Package?
Depending on the type of professional package you apply for i.e. a standard loan package or a private banking package, the pricing will be from $300 to $750.
The annual fee for a professional package usually covers the following:
- Regardless of how many different loans you have, you only pay for the one annual fee.
- There are no ongoing or hidden fees on your loan.
- Discounts on products such as home insurance, personal insurance and financial planning.
- Most of the account keeping type fees on your transactional accounts can be waived.
- The annual fee on your credit card can also be waived.
Who is a Professional Package Suitable for?
Even though the name ‘Professional Package” may imply that this loan is mainly for professionals, although in the past banks only approved select professionals, this is no longer the case.
You don’t need to be a lawyer, doctor or an accountant to get a professional discount.
Usually a professional package is best suited for:
- People who are intending to borrow a larger loan amount. For loans greater than $500,000 most lenders can now offer a discount of 0.5% to 0.9% from their standard variable rate.
- People who prefer to apply for a whole package type of loan. This means that there will be an annual fee which would cover all the features that are included in the package. For most people, applying for a professional package would be a smart choice as you would not need to pay a fee for each feature separately.
- Anyone who does not mind changing banks to get the best possible deal.
Who should not Apply for a Professional Package?
If you’re thinking of getting a professional package, and the points bellow fit your criteria, it may not be the best choice for you:
- You are borrowing less than $250,000.
- You do not need a range of bank products.
- You do not want to switch to a new bank.
Please enquire online or call us on 1300 856 846 if you would like to talk with our mortgage broker who can give you expert advice on professional packages loan.