Getting a home loan with a credit card: worth it?
Some banks offer packages that include a home loan and a credit card. You can get a discount on the annual card fee plus other benefits.
Key takeaways
- Many Australian banks offer a package that combines a home loan with a credit card and other products like an offset account, with waived or discounted fees.
- Saving on fees is great, and it's really convenient to manage your saving, spending and loan repayments all in one place.
- Just make sure the package fee is worth the cost. Both the home loan and credit card should be products that suit your needs and represent good value on their own.
Benefits of a credit card home loan package
A package home loan is an easy way to combine a home loan with a credit card. Not every loan package offers a credit card as part of the deal, but it's very common.
The benefits are:
- Fee discounts. Most credit cards charge an annual fee that can range from $50 to $400. With a loan package many lenders discount or waive this fee and several others. But you do have to pay an annual package fee.
- Rate discounts. Some loan packages also discount the interest rate on the loan. A lower rate save you thousands of dollars over time.
- Convenience. Doing most of your banking in one app, including card spending and making loan repayments, is very convenient.
Some loan packages also offer discounts on insurance products.
Banks that offer home loan and credit card packages
| Bank | Key features |
|---|---|
| Bank Australia |
|
| Bankwest |
|
| CommBank |
|
| Macquarie Bank |
|
| Newcastle Permanent |
|
| Westpac |
|
Finder survey: Would Australians package a home loan with a credit card?
| Response | |
|---|---|
| No | 40.83% |
| Yes | 37.32% |
| Unsure | 21.85% |
Source: Finder survey by Pure Profile of 1112 Australians, December 2023
Should you get a home loan and credit card package?
A home loan credit card package with the same bank is pretty convenient and can save you money in fees. You just have to make sure every part of the package is a good product for you on its own.
Here's how to think about it:
- Is the home loan a competitive deal? Don't just get a home loan because you like the credit card that comes with it. Make sure the loan has a low rate and features you need (like an offset account).
- Is this the right credit card for me? There are so many credit cards out there. Make sure the card offers the perks and benefits you need.
- Is the package fee worth it? Am I actually saving money? Yes, a package loan should come with fee discounts. But there is usually a package fee. Given that some home loans don't have many ongoing fees, the package fee might not be worth it.
- Can I get better deals elsewhere? You should always compare home loans and cards from multiple providers.
"After comparing options, we found the best value for us was the CBA home loan package. At the time we received a $2000 cash back offer on sign up and got the annual fee waived for the first 2 years. I also really like how we have a lending manager who I can call any time I have a question or need anything such as opening more offset accounts. "
Tips to help you make the most out of a home loan and credit card package
- Consider all inclusions. Make sure that everything included in the package is useful to you, because you might not get full value for your package fee if you’re not utilising the entire package.
- Check minimum requirements. Some requirements may apply. For instance, some loan packages may stipulate that your home loan be at least $750,000 to qualify.
- Read the fine print. Familiarise yourself with the main details of the package, since some finer print may reduce the suitability of the package. For example, you may not be able to refinance a loan internally, or enjoy currently advertised discounts on an older loan.
Sources
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