Updated: Aug 4, 2021
Many lenders offer packaged home loans which allow you to sign up to a home loan as well as other financial products such as a credit card and transaction account with the same bank or financial institution.
A packaged home loan generally comes with the advantages of a discounted interest rate and lower fees, however there may be other products that could provide you with similar discounted interest rates and lower fees without the need to obtain a credit card or transaction account.
The credit card and transaction account may also introduce further ongoing fees and charges that should be considered when comparing the overall ongoing costs of packaged home loan products.
Standard home loan products may offer cheaper rates and fees with no frills or features but may charge a fee each time you want to access money through a redraw facility.
Every borrower’s situation is different and the additional credit card, transaction account and other benefits may not be appealing to all people looking to secure a new home loan. Therefore, when comparing products, you should ensure you prioritise the features of a package that you would use or value. You should also include those features that do not have a dollar value but are important to you such as having all of your banking in one place. Considering all the features and information you will enable you to do the sums and make an informed decision.
Speak to your mortgage broker today about packaged home loan products.
The Newstead Group Team