Many Australian banks offer professional mortgage packages. In the past these packages were generally only offered to members of certain professions such as doctors, accountants, lawyers etc.

However, today professional packages are available to most people providing they meet a certain minimum lending criteria

What do professional packages include?

The benefits offered by professional packages differ from lender to lender but generally they can include:

• Interest rate discounts of 0.25% to 0.75% per annum for the life of a loan.
• No establishment fees or monthly fees. For example you may be entitled to take out 4 loans and not pay an establishment fee for any of them.
• Free annual loan restructure.
• Fee free transaction account and gold credit card.
• Discounts on other banking products such as insurance.
  

Generally lenders normally charge an annual professional package fee in the range of $295 to $350 for the above benefits. The interest rate discounts alone make these packages beneficial (depending on loan size). For example, on a $400,000 loan you will save approximately $2,400 per year with a 0.6% interest rate discount.

Are professional packages advertised?

If you surf the banks internet sites you will notice that not many of them advertising professional packages. Sometimes they will not tell you about them if you enquire in a branch. Why? Because they probably don't want to give you an interest rate discount if they don't have to.

What to watch out for?

You need to watch out for some hidden rules in packages that may not make them as attractive as first thought, for example:

• Some interest rate discounts do not apply when your total lending falls below a certain amount (for example $150,000) whereas some banks offer discounts for the life of the loan irrespective of value.
• The quantum of interest rate discount is generally determined by the loan size (i.e. the greater the loan the greater the discount). Package discounts are judged on either the individual loan size or total borrowings with the bank. Obviously the latter is better.
  How do you find out about them?
  Simply call our Top Broker hotline on 1300 78 63 78 for further information or use our ONE STEP mortgage query form below to receive a free professional package consultation.