Package home loans explained – could they be right for you?

What do the words ‘package home loan’ bring to mind? A home loan with a bow on it? Not quite sure or nothing at all? Then this read is for you! Put simply, a package home loan lets you bundle other financial products or services like personal loans, credit cards or savings accounts in with your home loan to access savings, discounts and other package benefits.

Let’s take a closer look to find out whether a package home loan could be worth considering for you.

In a nutshell

Chances are that you already enjoy package benefits on other household services, or that you’re at least familiar with them. A package home loan is much the same as the kind of bundled deals and discounts that mobile, internet or energy providers offer when you opt to ‘bundle’ multiple services or utilities with them.

Though the details will vary from one financial institution to another, in general, a package home loan involves packaging one or more financial products or services with the one bank or financial institution to access discounts, savings or other benefits. A package home loan, for example, might offer discounted interest rates or fee-waivers when you bundle your home loan with another product like a savings account, credit card or personal loan from the same lender.

Banks will often charge an annual fee for packaged home loans, but it's still often more cost-effective than standard unpackaged home loans, as borrowers save on separate annual fees for each product, as well as accessing additional savings and discounts.

Types of products commonly bundled with package home loans include:

• Mortgage offset accounts
• Savings and transaction accounts
• Credit cards
• Personal and car loans

Some of the common benefits

Let’s take a look at some common benefits that come with package home loans:

• Rate discounts: Discounted interest rates are typically offered with package home loans which could mean significant savings over the life of your loan. 
• Waived fees: Another common perk with package home loans is the waiving of one or more account or transaction fees. For example, our Your Way Plus Home Loan offers waived establishment, valuation and top up fees as well as unlimited fee-free redraws, waived personal loan application fees, plus, for essential worker first home buyers, we’ll waive the annual fee completely.
• Flexibility benefits: Flexibility is often a key feature with package home loans with the option to make extra fee-free repayments. It’s a popular perk with borrowers because it can mean paying your loan off faster and significant savings on interest.
  
• Mortgage offset facilities: Another benefit sometimes offered with a package home loan is access to a mortgage offset facility when you bundle a transaction or savings account with your loan which could save you thousands over the life of your loan.
  
• Other perks: Depending on the bank or financial institution, there may be other benefits on offer too. For example, our Your Way Plus Home Loan offers essential workers an additional 0.05% interest rate discount on variable rate loans. 

What else comes with a package home loan from Health Professionals Bank?

You can use Your Way Plus home loans as owner occupier or construction loans, plus you’ll get access to these package benefits:

• Discounted Variable rates for the life of the loan
• PLUS extra 0.05% p.a. discount for essential workers^ (Variable rate only)
• PLUS 100% offset
• PLUS establishment, valuation* and top up fees waived 
• PLUS annual fee for essential workers^ first home buyers waived
• PLUS flexibility to make additional repayments on both fixed and variable loans
• PLUS access to fee-free redraw on both fixed and variable rate loans
• PLUS personal loan application fees waived.

Find out more about Your Way Plus package benefits here.

Need a little expert guidance?

Our Lending Specialists can help you weigh up your options and find the best home loan for your needs.

You can make book a call back to talk to a Lending Specialist either at home, on the phone, or on a video call.

Book a call back.

Essential workers

^Eligible Essential workers include: School Principal, Faculty Head, Commissioned Fire Officer, Commissioned Police Officer, Ambulance Officer, Intensive Care Ambulance Paramedic, Supervisor Police Officer, Police Officer, Senior Fire Fighter, Fire Fighter, Registered Nurse, Registered Midwife, Registered Mental Health Nurse, Registered Developmental Disability Nurse, Enrolled Nurse, Pre-Primary School Teacher, Primary School Teacher, Secondary School Teacher, Special Needs Teacher, Special Education Teachers, University Lecturer, University Tutor, Vocational Education Teacher, English as a Second Language Teacher.

*Valuation fee waived for first home buyers only