Package Home Loans
Get a lower interest rate and other discounts when you move all your banking to one lender.
We’re reader-supported and may be paid when you visit links to partner sites. We don’t compare all products in the market, but we’re working on it!
Package home loans bundle together various products with your lender, including credit cards, personal loans and savings and transaction accounts.
You'll usually benefit from decreased fees and interest rates on your home loan and other linked products, and in exchange your lender will require you to pay an annual fee which ranges from $150 - $400, or even more in some cases.
Compare package home loan offers
Common features of a package loan
Package home loans differ depending on the lender. However, some common features include:
- An interest rate discount. This discount is often tiered on the amount you borrow. This means that even as official rates rise and your lender raises their interest rates you can maintain a lower interest rate.
- A 100% offset account. Many package loans come with an offset account. This is a transaction account linked to your home loan. Any savings you put in there will offset your mortgage principal and thus reduce the amount of interest you pay.
- Other financial products. The main point of a package loan is that it combines other financial products from the lender. This usually includes a bank account and credit card but can also include insurance packages and other products, with discounts on some or all of them.
- An annual fee. In exchange for these benefits, a package home loan generally charges an annual fee between $150 - $400, or more in some cases. This often replaces multiple other fees the lender charges for each product separately.
What are the pros and cons of a package home loan?
Here are the main benefits and drawbacks of package home loans.
- Convenience. Combining multiple financial products with one lender makes sense and is convenient. If the lender has a good app you can use your cards, accounts and mortgage seamlessly.
- Discounts. You can often get decent discounts as part of the package which can save you quite a lot.
- High annual fees. Package fees tend to be fairly high and are also charged every year.
- Higher rates. A package may not be your lender's most competitive home loan rate.
You should look at it like this: if the package is convenient and you actually all the products in it then it may be a good deal. Just make sure the rate is competitive and the fees aren't too costly. If you don't need the other products in the package and you can find a lower interest elsewhere than a package loan isn't for you.
How to compare package home loans
So you tick all the boxes and you're eligible for a professional package home loan. Now the only thing left to do is for you to pick a lender that suits all your needs. But how do you compare one lender to another? Just follow these steps and take a look at the different tables shown below to get informed before making a decision:
- Compare interest rates. Look at both the advertised rate, also known as the annual percentage rate, and also the comparison rate (shown as 'comp rate' in the table above). The comparison rate is an indicative rate which takes into account some of the fees you'll pay over the life of your loan, and is generally worked out using the example of a $150,000 loan taken out over 25 years.
- Compare fees. As mentioned, package home loans come with annual fees. You'll want to make sure these fees are worth it in terms of features and interest rates.
- Compare features. Ensure that the loans you're looking at provide features you'll use. If you want to make extra repayments on your home loan, ensure your loan allows you to do this. If you want to have your salary paid into your account each month
More guides on Finder
Property pounce: A record 67% of Aussies say now is a good time to buy
Optimistic home buying sentiment has reached a pre-pandemic high in Australia according to new research by Finder, Australia’s most visited comparison site.
Afterpay hangover? Beware of impact on home loan approval
Off the back of Christmas spending, a finance expert has warned that your Afterpay habits could negatively impact your home loan application.
Are you better off putting $10k in your home loan or in super?
Our experts crunch the numbers to help you work out the best place to park your money: is it your mortgage or your super fund?
Christmas comedown: 1 in 4 Aussies worried about housing costs
One in four (25%) Australians are worried about how they will pay the rent or mortgage after Christmas, according to new research by Finder, Australia’s most visited comparison site. Find out how the Finder App can help save you money in 2021.
UCapital Unsecured Business Loan
A UCapital unsecured business loan can provide up to $300,000 without security, with repayment terms between 3 and 12 months.
MoneyMe Freestyle Virtual Mastercard
Get $250 credit back when you meet the eligibility requirements and 55 days interest-free on purchases.
What is a redraw facility?
Here's what borrowers need to know about home loans with redraw facilities.
It’s official: Comparing home loans saves you big money
Lenders often give discounts to new borrowers, but not to loyal existing customers. Here's how to work out if you're being charged too much.
Find out more about AdvancePay, the Commonwealth Bank's new "pay on demand" platform accessible to creditworthy CommBank customers.
How to start a mobile app business
Learn the key considerations when it comes to starting and growing your smartphone app company.
Home Loan OffersImportant Information*
Up to $3,000 refinance cashback. A flexible and competitive variable rate loan. Eligible borrowers refinancing $250,000 or more can get $2,000 cashback per property plus a bonus $1,000 for their first application. Other conditions apply.
Up to $4,000 refinance cashback. With this competitive variable rate loan from St.George, refinancers borrowing $250,000+ can get up $4,000 cashback and borrow up to 90% of the property's value. (Terms, conditions & exclusions apply).
A competitive variable rate mortgage for owner occupiers $0 application and $0 ongoing fees. This interest rate falls over time as you pay off the loan.
Ask an Expert