All Topics / Hotch Potch / Professional homeloan packages

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  • Profile photo of MrInvestITMrInvestIT
    Member
    @mrinvestit
    Join Date: 2003
    Post Count: 4

    Hi All,

    There was a segment on Today Tonight (today) on Professional homeloan packages and I wanted to get a feel for what sort of discount and conditions apply to these packages. I am a System Engineer (IT) earning around $45K gross (and around $45k cash saved up) with no prop. under my belt as of yet. Would I be able to apply for any Prof. packages out there and if so which ones?

    Much appreciated,

    Mike.

    Profile photo of ddtaprellddtaprell
    Member
    @ddtaprell
    Join Date: 2003
    Post Count: 15

    Mr InvestIT

    ANZ have a package that used to be called a premier package. You pay about $300/yr and receive a gold credit card(fee free) up to at least 5 loans fee free. ANZ One account fee free as well as a percentage off a variable home loan (.5% I think) As well as other benefits.

    Debra[:I]

    Profile photo of MobileMortgage3MobileMortgage3
    Member
    @mobilemortgage3
    Join Date: 2003
    Post Count: 21

    Hi Mike
    To be ellgible for the ANZ Professional Package
    you will need a gross annual personal income of $50.000 or joint gross income of $75.000
    or a practising member of the following professions
    Medical Practitioners, Pharmacist,Accountant,
    Barrister or Solicitor,Surveyor,Architect

    The ANZ Breakfree Package(cost$295 annual fee) offer up to a 0.60% discount p.a based on loan amount,

    St George have a Professional benefits package
    with a discount of up to 0.65% this discount varies depending on total borrowing amount.

    Regards Steven.

    Mobile Mortgage
    [email protected]
    Phone 0402483216

    Profile photo of MarcoMarco
    Member
    @marco
    Join Date: 2003
    Post Count: 66

    Ask the NAB for their “Choice” Package. Aimed at the sophisticated investor. Min loan is $150K. No expert in this but I’ve heard it bandied around a little.

    Regards

    Marco

    Profile photo of MrInvestITMrInvestIT
    Member
    @mrinvestit
    Join Date: 2003
    Post Count: 4

    Thanks all,

    I’ve followed up on some of your info /advice and applied for a pre-approval with NAB and their “Choice” package. 6.06% with 100% offset account attached to it and all for 1 annual payment of $375 and no other fees. I’m not sure if there is any other 100% offset packages that can match this kind of value for money. Otherwise I am considering RESI Homeloans (www.resi.com.au) with their standard variable of 5.85% and no fees whatsoever appart from establishment fees.

    Cheers.

    Profile photo of The DIY Dog WashThe DIY Dog Wash
    Member
    @the-diy-dog-wash
    Join Date: 2003
    Post Count: 696

    MrInvestIT

    We have got 13 various accounts witht the NAB and have the professional package and we don’t pay bank fees on any of the accounts, of course you still pay govt fees.[:D]

    It has saved us alot of money as we did an exercise during the first year that showed we easily spent the same amount on fees as the package price itself, and we only had 3 accoutns then.

    Cheers
    Leigh K[:D]

    Carve your own path and lead the way …

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    On the most part discounts are based on total loans with the bank. As an indication the discount should be as follows:

    $150 – $249k = 0.50% off (therefore 6.07%)
    $250k – $499k = 0.60% off (therefore 5.96%)
    $500K – $999k = 0.75% off (therefore 5.81%)
    > $1m = 0.85% off (therefore 5.71%)
    > $1.5m = 0.95% off (therefore 5.61%)

    Generally the best pro packs are offered by ANZ, CBA, Westpac, NAB and St George.

    Most of these lenders will also discount fixed rates (the maximum fixed rate discount is normally 0.25%).

    There are some significant differences between all these packages.

    ANZ
    – They measure discounts based on individual product size (not total lending)
    – Package includes up to 5 mortgages.
    St George
    – They still charge application and ongoing fees per loan. Also its products have break fees for 3 years.
    CBA
    – They don’t really have an offset account (not like the other banks)
    – Package includes unlimited number of mortgages
    NAB
    – They are very good but they can be low on the borrowing capacity side of things.
    – Package includes unlimited number of mortgages
    Westpac
    – Owner occupy and investment interest rates are different. LOC rate is too high. They have some good products.
    – Package includes up to 5 mortgages.

    Cheers

    Stu

    http://www.prosolution.com.au

    Profile photo of MrInvestITMrInvestIT
    Member
    @mrinvestit
    Join Date: 2003
    Post Count: 4

    Thanks Leigh and Stu.

    Leigh, when you say government fees, what do you mean by that? As you can see I am still new to all the banking side of things as I only have a savings and credit card accounts at the moment. [:)] Also, how did you negotiate the no bank fees for any accounts? Was it possible because you have so many accounts with NAB or simply by dancing over their heads until they agreed[?]

    curious Mike.

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    Mike

    I think Leigh is referring to gov fees such as title search, mortgage registration and deregistration, stamp duties, etc.

    The NAB package entitles you to an unlimited number of mortgages, transaction accounts and credit cards for one annual fee of $375. Non negotiation required – that’s their standard offer.

    Cheers

    Stu

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Stu The Westpac LOC with pro package is 6.12% (at 0.6% off) As far as I can tell from the website NAB don’t offer the discount on their LOC, only on their home loans, or did I miss something. Do you consider 6.12% to be excessive wrt to the others?
    BTW, great article in API magazine.
    Regards, Jim

    Profile photo of rolfuschrolfusch
    Member
    @rolfusch
    Join Date: 2002
    Post Count: 7

    Guys,
    just a few additional hints:

    Westpac
    1. Westpac’s package is the most flexible product when it comes to Top-Ups and Loan Structure.
    2. It is not limited to 5 loans (like you said), but unlimited number of loans.
    3. Also, you say that owner occuppied and investment rates are different, that’s true, however only for 2 products namely the First & Premium Option Home Loans all other products have the same interest rate
    4. Westpac has 2 Line-Of-Credit Products, the Rocket Equity Access at 6.67% and the Equity Access Plan at 6.72%, they both attract a 0.6% discount within the Premier Advantage Package
    5. Westpac has one of the most generous serviceability models (which means more loan for the same income)
    6. Westpac currently maintains excellent service levels

    Unfortunately, only CBA offers discount on fixed rates (0.15%)

    Other banks/lenders such as BankWest, RAMS, Homeside, HSBC and Bank of Queensland also offer very competitive professional packages

    It’s obvious that I do like Westpac. I do 70% of my business with the Westpac Premier Advantage Package.

    Yours sincerely
    Rolf Schaefer
    RJA Financial Services Pty Ltd
    Accredited Mortgage Broker
    Tel: 03 9753 9044
    Fax: 03 9753 9055
    Mobile: 0422 907 022
    E-mail: [email protected]

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Thanks for that Rolf. I’m certainly very happy with my Westpac pro package, and I’m just in the process of establishing an equity access loan. The only discount we get with the fixed loan is no establishment fee ($750) and no loan maintenance fee of $96 pa.

    Did anyone else notice the 5.39% shown on one of the statements in that TT segment? I think it was CBA, but probably a honymoon rate or something. Typical TT!.

    Jim.

    PS Rolf, do you know if NAB offer a pro discount on their LOC?

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,190

    Rolf

    I agree with you on Westpac. Their service levels are excellent at the moment with quick approvals and good repsonse rates to brokers. Can’t say the same about ANZ though. And Westpac has one of the best serviceability models.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of Stuart WemyssStuart Wemyss
    Member
    @stuart-wemyss
    Join Date: 2003
    Post Count: 598

    Rolf – I have been able to get ANZ, Westpac, CBA (standard) and NAB to discount their fixed rates… just ask and negotiate.

    Jim – NAB will discount their LOC (but its not standard).

    6.12% is a bit high for a LOC (watch out for my next article on LOC’s in API Dec/Jan issue).

    ANZ has the lowest LOC at the moment 5.97% (if loan is over $250,000). However, I agree with Terry & Rolf – their service is terrible. I have drafted 2 complaint letters for clients in the last week or so. It’s probably not worth refinancing to save 0.15%. The question you should ask yourself is: do I really need a LOC?

    Cheers

    Stu

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Hi all,
    I am a big fan of Westpac’s Professional Package. How well you do with the package I think also comes down to how well you get along with you home finance manager. I had a similar product with ANZ and it sucked – very poor service. My current Westpac Manager is great. I have followed her to 3 different branches on her promotions. She is creative and uses the Premier Adv Package to my best interest. I have refinanced and topped up loans 5 times in the last twelve months – all done efficiently and generally within the week tops.
    I agree about the LOC rate being a bit high though – on balance, I have kept a view of the entire package by comparison to others, rather than just one part of it. To compensate, I keep only one LOC at the moment.
    Lisa R

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Can you tell us her name Lisa? Just her first name and branch would be all we need. I’m just curious to know if she’s the same one I’m using.
    Regards, Jim.

    PS Thanks Stu, I’ll see if they will come to the party for a $1M LOC. (It’s for my JV partner, who has a long history with NAB, and has developed a sense of loyalty to them, even if they do charge him 1.3% more than Westpac!)

    PPS Lisa your cool link doesn’t work. You need to delete the “www” from the front of it.
    Jim

    Profile photo of rolfuschrolfusch
    Member
    @rolfusch
    Join Date: 2002
    Post Count: 7

    All banks do a pricing when confronted with a better offer from another bank. A good mortgage broker knows how to play that game, although it doesn’t always work.

    Yours sincerely
    Rolf Schaefer
    RJA Financial Services Pty Ltd
    Accredited Mortgage Broker
    Tel: 03 9753 9044
    Fax: 03 9753 9055
    Mobile: 0422 907 022
    E-mail: [email protected]

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