Home Loan and Mortgage Refinancing Tips From Loan Monster
Originally designed for professionals and high income earners, professional package loans are high value, fully featured loans with favorable terms. Pro pack loans are generally offered by lenders which have a variety of financial products they want to sell to customers.
The original idea was that high income earners such as professionals are both profitable and low risk so attractive loans are packaged with a few of the bank’s other products to entice these borrowers to become loyal customers. Nowadays package loans are the standard loan for most homeowners.
Just for Professionals?
In the past, pro pack loans were reserved for professionals and high income earners, whether by specific marketing or through high minimum loan amounts. With property prices rising in value, pro pack loans have become much more commonplace and nearly anyone can take advantage of a pro pack loan.
In fact, the definition of pro pack is sometimes stretched these days to simply mean a fully featured home loan of any sizeable value, with some lenders lowering the minimum. However, these lower value pro packs generally stray far from the original definition in terms of benefits and are usually just fully featured home loans.
Pro pack loans often offer rates at a discount to the standard rate of the lender which can add up to huge savings each year. As an example, with a $250,000 loan at a 0.5% rate discount you could easily save over a thousand dollars a year, although this would be offset a bit by the annual fee you’d pay for the discount.
They often have features such as offset accounts, credit cards or other bank products bundled in at a great price. The best pro package loans will generally come with many added benefits, all for an annual fee.
The benefits will often be tiered as well, most notably the rate discount, so there may be one rate for loans of $100,000 to $249,999, and then a higher discount past $250,000. Some professional packages won’t discount the rate but will instead offer other financial benefits.
Is a Pro Pack Loan for You?
In exchange for these nicely featured loans at low rates, you’ll usually have to pay a fee of a few hundred dollars annually. Traditional high value pro pack loans are often packaged quite attractively. But if the pro pack you are looking at is on a loan that’s less than $200,000 in value, it may be worth evaluating other options such as a more bare bones loan and seeing if the rate savings is worth the fee you’re paying to get it.
Pro pack loans are another option in the home loan market and for home buyers they are well worth a look. For more information about pro pack loans or home loans in general, contact your friendly Perth Mortgage Broker Loan Monster today.