Professional Package Home Loans

Professional package home loans exist for people earning a high income, who are then classified as low-risk borrowers to lenders.

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, updated on August 8th, 2023       

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Professional package home loans were created in the 1980’s and reserved for doctors, lawyers, CEOs and celebrities alike. Today people working these occupations are of course still able to receive these loans, but they are now open to a much larger portion of the population.

What is a professional package home loan?

Professional package home loans are for those with high incomes that can be considered as low risk borrowers to lenders.

When looking to borrow more than $250,000 for a home loan, you will likely be eligible for a professional package home loan.

Other features of these loans include:

  • A higher allowed Loan to Value Ratio (LVR)
  • Lower interest rate levels
  • Discounts on loan fees

Professional package home loans do not only relate to home loans, they can involve other banking products as well.

How do professional package home loans work?

Aside from all mentioned above, a professional package home loan allows you to bundle all of your banking products together, including:

  • Cheque accounts
  • Credit Cards
  • Insurance
  • Any other loans

This means you have a much more simplified banking process. The main feature of this is the waiver of separate annual fees, including credit card fees. Replacing this is one annual fee for all products combined, usually amounting to between $300 and $750.

You will also likely receive a 100% offset account as a part of your professional package home loan. This acts as another bank account with its balance working against the principal on your home loan. For example:

Amount in 100% offset account Home loan principal Interest is charged on
$20,000
$750,000
$730,000

An offset account can quickly accelerate and decrease the repayments on your loan, meaning you will likely be mortgage free sooner rather than later.

How can I save more though a professional package home loan?

The potential to save more on your mortgage through a professional package loan comes via special discounts and considerations found within two different categories:

  • Interest rates and fees
  • Loan to Value Ratio (LVR)

Interest rates and fees 

If you are eligible for a professional package home loan, you could receive considerable discounts on interest rates and other home loan related fees.

As mentioned previously, the minimum borrowed amount of a professional package loan is $250,000.

At this base borrowing level, you will see discounts in interest rates such as:

  • More than 0.5% for a standard variable rate.
  • Close to 0.25% for a fixed rate.

But when you start borrowing over amounts like $750,000 you will see discounts such as:

  • Over 1% for a standard variable rate.
  • Well over 0.25% for a fixed rate.

Loan to Value Ratio (LVR) 

With a professional package home loan, you will be eligible to pay a higher loan to value ratio than someone with a regular home loan.

A higher LVR means that you will pay less for a deposit. Some lenders will allow as high as 95% LVR meaning that you only need to pay 5% of a property’s value as a deposit.

However, this acts as a sliding scale, as a lower LVR/higher deposit will likely entitle you to better offers from lenders.

How to apply for a professional package home loan

Pros and cons of professional package home loans

PROS

A higher LVR means you will not have pay as much for a deposit as you would with a regular home loan.

Lower interest rates mean that you will end up paying less in the long term than you typically would with a regular home loan.

There are no hidden fees throughout the term of your loan, with many of them being waived.

You will likely receive a 100% offset account, accelerating the repayment process.

All of your financial products will fall under the one lender, making your banking process much easier.

CONS

Annual fee between $300 and $750 for bundling of financial products.

You will likely need to switch lenders for many of your current standing agreements, which could be a tedious process.

Have questions about professional package home loans?

What income do I need to have to get a professional package mortgage?

There is no specific income level needed to apply for a professional package home loan. While originally they were designed for higher income earners, anyone who is receiving a home loan of over $250,000 and has a number of different banking products with different lenders can apply.

How many lenders offer packaged loans?

Most lenders, including Australia’s Big Four banks (ANZ, Commonwealth Bank, NAB and Westpac) offer professional packaged loans to borrowers.

Why do I have to pay an annual fee?

The annual fee charged with this category of loan is in lieu of the separate fees charged by each banking product.

Where are the main places I can save with a professional package home loan?

Despite needing to pay the general annual fee mentioned above, you will likely save considerably on this instead of needing to pay many separate ongoing fees for all of your banking products.

What other features can I get on my loan?

Aside from the packaging of all of your banking products and a 100% offset account as mentioned above you will also be eligible for other features on your home loan including:

Is switching your banking products over to another lender difficult?

Usually your new lender will do most of the work for you to get all of your different banking products over to their services.

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