Professional Homeloans Packages
Professional Homeloans packages are highly recommended by most Mortgage Loan Brokers as they are a very cost effective way to borrow money especially if your homeloan balance or combined homeloans balances are greater than $400,000.
The major benefit for the borrower is that in exchange for an annual package fee, they receive a discounted mortgage interest rate for the term of the loan, or for as long as they retain the package and pay the annual package fee.
Professional Homeloans packages were originally only offered by the major banks and were only available to select borrowers who were engaged in “so called” professional occupations (i.e. lawyers, doctors, engineers and accountants) and who earned a minimum salary of $75,000 a year. This was viewed by many Mortgage Loan Brokers as being a discriminatory lending practice as the majority of homeloan borrowers were middle class, working class constituents and resulted in Mortgage Loan Brokers seeking alternative lending arrangements for their clients with non-bank non-discriminatory 2nd tier lenders.
Professional Homeloans Packages Vary from lender to lender
Nowadays Professional Homeloans packages are more commonly available, offered by most lenders, have no salary or income qualifications and are highly recommended by Mortgage Loan Brokers due to the array of benefits attached to the package apart from the discounted mortgage interest rates.
The product and service benefits available within each lender’s professional homeloan package, varies as does the annual package fee which ranges from Nil to $395.
Generally all types of homeloans (i.e. variable, fixed and Line of Credit) are available within a package and qualify for a discounted mortgage interest rate. The amount of the interest rate discount offered under the package usually depends on the size of the homeloan or combined homeloans within the package. For example, homeloan amounts between $250,000 and $350,000 may receive a discount of 0.4%; $350,000 – $450,000 a discount of 0.5%; $450,000 – $550,000 a discount of 0.6% and so on with the maximum discount generally being 0.8%.
In addition to discounts on interest rates, professional packages offer other features and benefits such as nil Application, Valuation and Legal fees; 100% Interest Offset accounts; Fee Free savings accounts; reduced Credit Card fees and interest rates; discounted Personal Loan interest rates and reductions in premiums for Building and Contents insurance.
Multiple Homeloans – larger mortgage interest rate discounts
As multiple homeloans can usually be included within the same professional package this can result in larger interest rate discounts being achieved along with significant savings on Loan Establishment and Loan Settlement Fees. Your Mortgage Loan Broker can advise you on the most suitable structure for achieving maximum benefits.
At times it is a requirement of the lender, especially when the lender is a bank that a transaction/savings account and/or credit card are accepted as part of the package and are applied for at the time of loan application. Although at times this may appear as a deterrent, the savings associated with owning and operating these financial products and/or services as part of a package can be considerable and are definitley worth considering.
To find out the benefits you could receive from a Homeloans Package contact one of the highly experienced and professional Mortgage Loan Brokers at Refinancing Group who will carry out a no obligation Homeloan Review to establish whether a homeloan package is the most suitable homeloan option for you.
Contact Refinancing Group on 1300 448 911 or click here now to register for an obligation free homeloans consultation.