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Learn more about bundled home loans

Want a home loan package deal, combining a mortgage with a bank account, credit card, and more? Learn more about how bundled home loans work, as well as their risks and rewards, before comparing interest rates on the Australian mortgage market.

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What is a bundled home loan?

Bundled home loans, also known as packaged loans, allow you to combine several different financial products from the same supplier.

Generally, a bundled mortgage will let you add one or more of the following to your standard variable home loan:

  • Credit cards
  • Financial planning
  • Insurance products (building and contents, car, income protection, life, total and permanent disability)
  • Mortgage offset account
  • Savings accounts
  • Share trading

Why choose bundled home loans? 

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Bundled home loans can provide a range of financial products in a single offer, which you may be able to tailor to suit your circumstances.

This is similar to the bundle deals offered by utilities companies that let you combine your gas and electricity into one account, or the phone, internet and entertainment packages offered by telecommunications companies. 

A packaged home loan generally offers you the convenience of having one supplier of your financial services. Plus, you may pay one fee, and enjoy advantageous discounted rates.

What are the main choices for bundled home loans?

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Not all bundled home loans are the same, so you should consider your options before choosing one.

For instance, if you’re buying a home to live in, then as an owner-occupier you may want a package that includes an affordable variable rate loan, a credit card and possibly a savings account.

If you are self-employed, you might want a credit card and a transaction account, plus a flexible low-doc home loan with an interest-only option. This can be helpful if your business income fluctuates from time to time.

If your plan is to borrow to invest in one or more properties, then you may be interested in a flexible home loan with a discounted fixed rate, plus a credit card.

What are the rewards and risks?

In the right circumstances, bundled home loans can be very convenient, and offer lower interest rates. Also, packaged home loans that offer flexible features can become very useful if your circumstances change. The combined value of all of the bells and whistles that come bundled with your home loan can potentially make a big difference to your budget and lifestyle.

However, if you know that you won’t use all the features in a bundled home loan package, it may not be right for you. For example, if you already have a good deal on a credit card, you don’t need another transaction account, or discounted insurance products won’t suit you, then you may want to re-think whether a package home loan will be worth your time and money.

It’s also important to compare the cost of any fees and charges on a home loan bundle to the value of its features and benefits, so you can be confident the bundle will be worth it for you.

For example, the average ongoing fee for a home loan at the time of writing is around $256, while the average ongoing fee for a credit card Is around $141. This would cost you around $397 per year to maintain these separately. An annual fee for a bundled package that costs less than this could potentially offer you better value, especially when combined with any interest rate discounts or other waived fees and charges. But if the lender charges a higher annual fee, you may not necessarily be enjoying greater value by bundling your products together.

It's also important to remember that not every borrower may be able to successfully apply for a package home loan deal. Lenders may require borrowers to fulfil extra eligibility criteria to qualify for these bundles, such as paying a bigger deposit, or earning a higher income with lower expenses.

A bundled home loan could also risk leaving you stuck with your lender, as all of your finances will be tied up in the same package. If you later wanted to refinance your home loan with another lender offering a lower interest rate, this may mean breaking the bundle, leaving you paying for the separate financial products, which may have individual fees that cost more in total.   

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^Words such as "top", "best", "cheapest" or "lowest" are not a recommendation or rating of products. This page compares a range of products from selected providers and not all products or providers are included in the comparison. There is no such thing as a 'one- size-fits-all' financial product. The best loan, credit card, superannuation account or bank account for you might not be the best choice for someone else. Before selecting any financial product you should read the fine print carefully, including the product disclosure statement, target market determination fact sheet or terms and conditions document and obtain professional financial advice on whether a product is right for you and your finances.