Professional Packages - Are they right for you?
The main benefit of a professional package to your home loan is access to discounted interest rates. Professional packages can provide additional benefits beyond the home loan such as:
- No account keeping fees on main transaction accounts,
- An offset account linked to your home loan,
- Credit card annual fee waivers,
- Discounted general insurances, and
- Initial financial planning consultation at no cost.
Many people who have professional packages do not take advantage of the discounts that the package has to offer as they find cheaper alternatives on the insurance and/or financial planning elsewhere. This does not mean that a professional package is not in your financial interest though.
Professional packages generally cost around $375 per annum to access, so you need to consider if this cost is recouped in the other saving opportunities. The main saving opportunity is the discounted interest rate and if the rate reduction has the effect of reducing your repayments by $30/month then you can recoup this fee over the life of the loan.
Lenders can provide some of these features without the annual fee so dependent on your needs and objectives other solutions may be more suitable to your individual circumstances.
Book an appointment with John Paine today to find out how you can save.