Benefits of home loans for professionals

Applying for a specialist professional mortgages and professional packages could allow you to enjoy one or more

No Lender’s Mortgage Insurance (LMI)

Other special offers may be available to professionals applying for home loans.

A lower deposit / higher Loan to Value Ratio (LVR)

Special offers may be available to high-income professions applying for home loans.

Lower interest rates & discounted fees

Other special offers may be available to professionals applying for home loans.

Professional package home loans

Professional package home loans were introduced by lenders to reward low-risk borrowers like doctors, lawyers and accountants. Lenders now allow anybody borrowing more than $250,000 to apply for a professional package home loan and access the benefits of bundling banking products and get generous discounts.

Speak with a mortgage broker to see if you may qualify for a professional package home loan. The package may allow you the convenience of having all your investments, savings and loans in a single place and enjoy special discounts as well.

What is a professional package home loan?

A professional package home loan is a bundle of banking products rolled together with your home loan. The bundling of the products offers benefits like credit card perks, fee discounts, 100 per cent offset account, and more. Lenders also offer generous interest rate discounts on your home loan when it’s included in a professional package that could lead to significant savings over time. You may be able to negotiate discounted rates on your other debts as part of the package as well.

A professional package home loan may be an option for you if:

  • You’re borrowing more than $250,000.
  • You have multiple products like credit cards, insurances, loans, transaction accounts, etc., from multiple institutions.
  • You don’t mind moving your products to one lender to get the best deal.

If you’re not sure whether a professional package home loan is good value for you or not, connect with a verified broker today to receive expert financial assistance. Mortgage brokers can help you crunch the numbers to make an informed choice.

There are many lenders in Australia, including the big four, that provide specialist professional home loans. You can start your search by comparing home loans online or contacting individual lenders or a mortgage broker for assistance.

What are the benefits of professional package home loans?

Depending on the lender, you can unlock a discount between 0.5 per cent to over 1.0 per cent on a standard variable rate when you borrow $250,000 or more. If you’d prefer a fixed-rate mortgage, you can access a discount of up to 0.25 per cent. Some lenders increase the discounts if you’re borrowing over $750,000. A mortgage broker can guide you through what’s available from various lenders to help you land a deal that works for you.

The benefits that come with a professional package home loan vary depending on the lenders, but some of the inclusions might be:

  • The convenience of having all your banking products in one place
  • Interest rate discount of between 0.5 per cent to 1.0 per cent on the standard variable rate.
  • Interest rate discount of up to 0.25 per cent on a fixed rate home loan.
  • Discounted or waived fees on products bundled as part of the package.
  • Credit card annual fee waivers.
  • A 100 per cent offset account linked to your home loan without any additional charges.

Lenders typically charge an annual fee for a professional package home loan, ranging between $300-$750. This may look like a lot, but it covers all the products included in the package. This means you don’t have to pay any annual fees for your credit cards, transaction accounts, and it may offer a waiver on your loan application fee, too. You can connect with a mortgage broker to compare home loan packages and select one that fits your needs.

Is it always beneficial to choose a professional package home loan over a standard home loan?

Just as no two borrowers are the same, no two home loans offer the same benefits and value to every borrower. These differences are why it’s smart to compare home loans from various lenders to find a competitive deal that’s right for you.

You could actually beat the benefits of a professional package home loan by combining a low rate mortgage with a basic transaction account and a no-frills credit card. But if you have existing debts, a professional package may turn out to be cheaper than paying individually for each financial service you use. Also, if you’re looking for a home loan with some bells and whistles, you’ll be paying extra for the additional features. So the benefits of a professional package home loan depend on the products you have and the home loan you’re looking for.  A packaged home loan gives you benefits like a 100 per cent offset account, a credit card with no annual fee and possible interest rate discounts if you’re borrowing over $250,000. 

It’s certainly worth looking at package deals when shopping for a home loan as they do come with benefits. When you do, make sure to go through each feature carefully to confirm the package contains all the features you need.

If you feel overwhelmed by the options, a mortgage broker can help you compare various professional home loan packages to choose one that may suit you. A broker will also crunch the numbers with you to determine whether a standalone or packaged mortgage suits you better. You can fill out this quick form to have a mortgage broker contact you and kickstart your home loan journey with professional help.

Who can apply for a professional package home loan?

In the 1980s, the deregulation of the banking sector led to intense competition between lenders. To gain more business, lenders decided to pursue what they saw low-risk and high-profit customers by offering them packaged deals at great discounts.

Originally  professionals such as doctors, accountants, celebrities and lawyers were the only borrowers offered these packaged deals. However, changing times further intensified the competition. This led to professional package home loans being extended to anyone borrowing a large sum of money and considered capable of repaying it.

Simply put, you don’t need to be a doctor, lawyer or accountant to get a professional package home loan. To be eligible, you need to:

  • Borrow a minimum amount of $250,000 and generally, the more you borrow, the more discounts you get. 
  • Have a minimum deposit of at least 5 per cent of the property price in genuine savings. However, a lower loan-to-value ratio (LVR) or higher deposit can make you eligible for better deals from lenders.

Are you interested in a professional package home loan? You can compare packages from multiple lenders online or connect with a broker to check your eligibility.

Professional package home loans – frequently asked questions.

1. Are professional package home loans suitable for everyone?

A professional home loan package may not be the best choice for you if:

  • You’re borrowing a sum less than $250,000.
  • You don’t require multiple banking products.
  • You don’t want to switch to a new lender.

If, however, you’re borrowing a large amount and have multiple financial products, a pro pack home loan can give you access to multiple discounts and benefits. You can access a discounted rate on your mortgage, discounts and waivers on fees, and have the convenience of all your banking products under the same roof.

2. Are there any fees associated with a professional home loan package?

Most lenders charge you an annual fee in the range of $300 to $750 depending on the type of professional package you apply for. The good thing is that you only need to pay one annual fee for all your banking needs with a professional package home loan.

As part of a professional home loan package, some lenders offer credit card and transaction account fee waivers, and discounts on various insurance products. The savings of these waivers and discounts often make up for the usually higher annual fee associated with a professional package home loan.

3. Which lenders offer professional package home loans?

Most lenders in Australia offer bundled products with home loans. AMP offers several professional package home loans, including packaged loans for high net-worth borrowers, that include a range of benefits. Westpac and Commonwealth Bank also offer competitive professional package home loans with several add-ons like free credit card and 100 per cent offset account.

You can compare professional package home loans from various lenders online to see what’s in the market and what may suit you. Alternatively, you can speak to a mortgage broker who can guide you through the process of choosing the package that best suits your needs.

4. Is it possible to get a low doc home loan with a professional package?

Yes, you can get a low doc professional package home loan if you’re a high-income borrower looking for a large sum of money. However, some lenders may offer a smaller discount as compared to a traditional full doc loan.

It’s better to speak with a mortgage broker who can guide you to lenders that offer the maximum discounts to borrowers in a similar profession to yours. You can get in touch with a verified broker online to receive expert financial assistance for your home loan journey.

5. Do high-income borrowers receive additional discounts on package deals?

High-income borrowers earning more than $200,000 a year may be eligible for additional discounts when borrowing over $500,00. These professionals can include architects, business owners, CEOs, executives, IT consultants, university lecturers etc.

If you’re a high-income borrower planning to borrow a large sum of money, it’s worth connecting with a mortgage broker. They can assist you in finding a bundled package or negotiating an additional discount on a standalone mortgage. 

6. Do you need to work with a mortgage broker to get a professional home loan package?

There’s no requirement for you to work with a mortgage broker to secure a standalone home loan or a professional package home loan. Although, brokers can ease the stress and confusion of your home loan journey by providing you with expert assistance at every step.

A broker can suggest tailored home loan deals at competitive prices, file your mortgage application and negotiate a better rate on your mortgage. They make the process of securing a home loan painless and hassle-free. 

Working with a broker can also increase your chances of approval with your first application. Your broker understands the eligibility criteria of various lenders and will only suggest to you lenders that are more likely to approve your home loan application. Some brokers also have exclusive deals with lenders that lead to more savings. If you’re searching for a home loan, seek help from a mortgage broker online to understand your options better.

Talk to a broker today