When is a Home Loan Package Worthwhile?
Tuesday, April 22, 2014
Why consider a Home Loan Package?
Initially, home loan packages were designed to appeal to investors and high income earners. A competitive modern market, however, has long since seen them become more accessible. So, is a Home Loan Package something you should consider for your mortgage? Well, it all comes down to practicality.
While package offerings may differ from lender to lender, typical features of a home loan package can include credit cards, deposit accounts, decreased interest rates, waived account-keeping fees and discounted financial planning advice.
(It’s important here to emphasise that packages will vary from bank to bank. Some packages may only include one or two of those features, and there are many different possible configurations.)
In any case, you should ask yourself whether you actually need any of those features, or rather, what you can save by combining these items under one reduced billing agreement. A credit card, for example, can be a helpful tool if used prudently – but, if used incorrectly, it can simply leave you dealing with another debt on top of your mortgage. Similarly, a financial planner can help manage your prospective investments into the future – or it can just be a service you essentially pay for and never use.
In some ways, it’s always a good idea to consider a home loan package (even if you never ultimately pursue one). By looking at features like credit cards or additional bank accounts, you can get a clearer idea of what your plans and intentions are for your financial future. Do you want to become an investor? Or do you just want a family home? Both? Neither?
Again, it comes down to practicality. What do you need? What will you use? You can even create a wishlist of what features you do need and negotiate with banks from there. After looking over some home loan packages, you may realise that you only need a standard home loan. There are no wrong answers. It’s entirely about what’s best for you.