For owner-occupiers and investors, the Property Package Loan allows you to package any Hume Bank home loan product you qualify for, except for the Interest Saver Loan, with the offered financial products from Hume Bank while discounting your interest rate.
The variable interest rates offered on the Hume Bank home loans vary depending on your loan borrowing amount, with smaller loan amounts subject to a higher rate, however all of these rates range from very low to moderately low.
Fixed rate customers also can take advantage of very low rates for fixed terms from one to three years and moderate rates for four to five year fixed terms. Line of Credit Loan customers do have to pay the highest offered rate, though this rate is still in the moderate range.
If you’re an investor, you will have to add a specified percentage to each of these rates. However, the interest-only option could still make this an enticing loan option.
The Property Package Loan features opportunities to repay your loan faster, including the opportunity to offset your interest with the balance of a deposit account through the offered 100 per cent offset account and to make unlimited early repayments for free if your loan has a variable rate. You are limited to how much you can repay early during any fixed term.
There is also a free redraw facility available with this loan from which you can make an unlimited number of redraws. However, customers of the Line of Credit Loan do not have access to this feature since a line of credit is already offered on this loan product.
This home loan package also provides a free transaction account, but be advised that only standard fees are waived for this account making it not technically a completely ‘free’ account.
Financial planning benefits are also a part of this home loan package which offers you a free initial consultation with a Hume Bank financial planner and a discount on a financial plan.
You can also receive discounts on motor, home or contents insurance which is provided by Allianz Australia Insurance, but these discounts can only be attained by setting up your policy through Hume Bank and any insurance will be an added cost.
The Property Package Loan is good especially for people who have already predetermined that the included features are on their needs checklist, because even though these are advertised as free or discounted benefits, you will still be paying for them through the annual package fee.
However, if your main priority is a lower interest rate with added package features then this could possibly be a good home loan option for you.
Both variable rate and fixed rate customers could benefit from this package since you can have access to very low to moderately low rates while making interest-only repayments for a period during your loan term.
This package is best suited if you’ve already made a list of the features you’re looking for in a packaged home loan since you will have to pay a sizeable annual fee throughout the life of your loan which is a huge cost in the long run.
As with any package offered with a home loan, it’s best to determine which features and financial products you really want to have along with your home loan since most packages do come with this annual fee, so make sure you won’t be paying for extra features that you might not need or ever use.
Find out more information about the Property Package Loan options offered by Hume Bank at the links below.