Package Home Loans - the benefitsMore and more Australians are opting for their home loan to be taken as part of a package deal that usually includes credit card and transaction account with the one financial institution. Over half of all new mortgages written by the major banks have been supersized to packages and it's not just smooth salesmanship that's responsible. Product packaging can be good value on a long-term basis. Traditionally aimed at typical home buyers, packages are now coming into their own with more flexibility on types of loans offered, such as interest-only and low-doc loan options.Package banking has broadened its appeal to a wider customer base and we are seeing its uptake by property investors and the self-employed, who are also keen to bundle their banking products into a package that suits them. This spread of customer use is behind CANSTAR CANNEX expanding its package banking star ratings criteria to include aspects of importance to the three separate groups – Home Buyer, Property Investor and Self Employed. In order to find the right package deal for you, first determine what profile best describes you (see below) and then look up the appropriate profile on the package banking star ratings report. This is a time-saving guide to what's out there and what you can expect from each lender. 
Home BuyerTo this owner-occupier, naturally the most important part of a package is a strong variable rate mortgage. It should still offer a certain degree of flexibility but must remain an affordable loan. The cost-sensitive home buyer will also benefit from a deposit account and a credit card with a simple fee structure.
Property InvestorBorrowing to invest in multiple properties can mean this borrower has a slightly different package banking wishlist. Loan flexibility is right up there. Use of a line of credit or interest-only are options favoured when cashflow needs juggling. A discount on a fixed rate loan is definitely tempting. And lastly, a credit card upgrade fills the bill nicely.
Self EmployedRunning your own business can be a problem when it comes to applying for a home loan. The self-employed needs a package with a low-doc mortgage, ideally at the lowest cost, depending on level of disclosure, and with a discount incentive to reward repayment behaviour. A transaction account and credit card are also useful by-products.Home Loans ... |
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