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Buying a home

Home loan packages: fees, interest rates & benefits

15 July 2021

Like an “extra value meal” at your favourite takeaway, a home loan package from a mortgage lender can bring together a range of additional benefits. They can help make things simpler and save you money, but it’s worth looking closely at what’s on the menu. Read on to learn what benefits home loan packages provide.

How home loan packages can help you save

Home loan packages can make home loans more affordable in two distinct ways. The most up-front benefit is a saving on your home loan, as interest rates can be reduced when home loans are packaged with other banking services.

The second benefit is the waived establishment fee on a linked mortgage offset account. A mortgage offset account works like a regular transaction account except it’s linked with your home loan. If you use an offset account, some or all of your account balance is ‘offset’ daily against your home loan balance. This means you’re only charged interest on the difference between the total loan balance and the amount offset.

For example: if you have a home loan of $700,000 and there’s $50,000 in your transaction account, interest would only be calculated on $650,000. Combined with reduced rates, you can potentially save thousands over the life of the loan.

Get more value out of optional extras

While a linked transaction account is a requirement of the package, you can choose from a range of financial services to include with your home loan package.

Combining products that provide you value can help you save even more. Depending on what you need, a home loan package might help you save by:

  • waiving annual fees on credit cards
  • waiving monthly account keeping fees on transaction accounts
  • providing discounts on insurance premiums.

Discounts can either apply for the life of the loan, the first year of your package, or new policies. So, it’s always helpful double-checking the terms if you find an offer you’re interested in.

Promotions can sometimes reduce or waive fees altogether. For example, Suncorp’s Home Package Plus offers savings on insurance policies for the first year of the loan and fee reductions on credit cards. For up-to-date offers, check out our Home Package Plus page.

Simplify your finances

Home loan packages can also help you better organise your finances

Paying a single fee rather than multiple fees spread across different products can also help keep you organised so you can better plan for financial obligations.

Make your home loan work for you

To find out if you’re benefitting from a home loan package, all you’ll have to do is compare the cost saving benefits of your package services with the annual fee. And Suncorp’s home loan calculators are the perfect place to start. If you come out on top, there’s a good chance a home loan package might be right for you.

If you have questions about a home loan package, Suncorp Bank’s professional lending experts can help you understand your options. All consultations are 100% obligation-free.

Talk to a home lending specialist

 

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Information is intended to be of a general nature only and any advice has been prepared without taking into account any person's particular objectives, financial situation or needs.

Home Loans are provided by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No. 229882 Australian Credit Licence 229882 (“Suncorp Bank”) to approved applicants only. Fees, charges, terms and conditions apply and are available on request. You should make your own enquiries, consider whether advice is appropriate for you and read the relevant Product Disclosure Statement or Product Information Document before making any decisions about whether to acquire a product.