Professional Package Home Loan Comparison
Compare Professional Package Home Loans
People who have high incomes are considered low risk borrowers and these are the people that providers would like to attract to use their loan products. Unfortunately, many of the people that are on high incomes will not need to borrow money to buy a home and as a result they will not see the need to pay interest and fees. However, many providers now offer professional packages that are aimed to attract these low risk borrowers. This article will explain what the professional packages are and how they can be used to save you money.
Featured AMP Bank Home Loan
Apply for AMP Essential Home Loan and get a low variable interest rate, plus no valuation and no additional repayment fee.
- Interest Rate of 6.35%
- Comparison Rate of 6.37%
- Application Fee of $350
- Maximum LVR With LMI: 90%
- Minimum Borrowing: $40,000
- Maximum Borrowing: $1,000,000
Professional Packages $100,000+
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 NAB National Choice Package ($100,000 to $249,999) |
NAB National Choice Package ($100,000 / $249,000) | 6.62% | 6.98% | $0 / $395 | 95% | $150,000 / $249,999 |
 
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 St George Portfolio – Home Equity Loan (Advantage Package $100K to $149K) |
Flexible repayment options. | 7.65% | $0 / $395 | 90% | $100,000 / $150,000 |
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 Commonwealth Bank Wealth Package ($150,000 – $250,000) |
Wealth Package ($150,000+) | 7.06% | $0 / $350 | 97% | $150,000 / $250,000 |
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 ANZ Breakfree Home Loan Package ($150,000 – $249,999) |
ANZ Breakfree Professional Package ($150,000 / $249,999) | 6.80% | $ 0 / $375 | 80% | $150,000 / $249,999 |
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 Westpac Premier Advantage Package ($150,000 – $249,999) (Pro Pack) |
Variable Loan Advantage Package ($150,000+) | 6.96% | $0 / $395 | 92% | $150,000 / $249,999 |
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 State Custodians Mortgage Company Standard Variable Offset Loan |
Awarded 2011 Non bank Lender of the Year | 6.22% | 6.45% | $0 / $345 | 95% | $150,000 / $1,000,000 |
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Professional Packages $200,000+
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
St. George Portfolio – Home Equity Loan (Advantage Package $150K to $249K) |
Combine your finances to keep banking easier. | 7.40% | $0 / $395 | 90% | $150,000 / $249,000 |
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NAB National Choice Package ($250,000 and above) |
NAB National Choice Package ($250,000+) | 6.52% | 6.88% | $0 / $395 | 95% | $250,000 / $10,000,000 |
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St. George Variable Loan (Advantage Package $250K plus) |
St. George Advantage Package ($250,000+) | 7.10% | 7.49% | $0 / $395 | 95% | $250,000 / $10,000,000 |
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Commonwealth Bank Wealth Package ($250,000 – $500,000) |
Wealth Package ($350,000+) | 6.81% | $0 / $350 | 97% | $250,000 / $500,000 |
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ANZ Breakfree Home Loan Package ($500,000 – $699,999) |
Breakfree Package ($250,000+) | 6.70% | $0 / $375 | 97% | $500,000 / $699,999 |
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Westpac Premier Advantage Package ($250,000 plus) (Pro Pack) |
Premiere Advantage Package ($250,000+) | 6.66% | $0 / $395 | 92% | $250,000 / $10,000,000 |
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 Resi Home Loans – Flexi Fix |
Resi Flexi Fix ($50,000 – $2,000,000 | 5.75% | 6.69% | $0 / $0 | 95% | $50,000 / $2,000,000 |
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Professional Packages $700,000+
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Illawarra Home Loans Bank Beater Home Loan |
A great offer to pay off your loan sooner with a low variable rate and a rate cut of 0.05% p.a. after 5 years. | 6.18% | 6.46% | $0 / $345 | 90% | $250,000 / $1,000,000 |
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NAB National Choice Package ($250,000 and above) |
NAB National Choice Package ($250,000+) | 6.52% | 6.88% | $0 / $395 | 95% | $250,000 / $10,000,000 |
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Commonwealth Bank Wealth Package Loan ($500,000 plus) |
Wealth Package ($750,000+) | 6.76% | $0 / $350 | 97% | $5,000,000 / $0 |
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ANZ Breakfree Home Loan Package ($700,000 plus) |
Breakfree Package ($700,000+) | 6.60% | $ 0 / $375 | 80% | $700,000 / $10,000,000 |
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Westpac Premier Advantage Package ($250,000 plus) (Pro Pack) |
Premiere Advantage Package ($700,000+) | 6.66% | $0 / $395 | 92% | $250,000 / $10,000,000 |
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What are Professional Packages?
Before we explain professional packages we should first explain who is a professional as these people will be the ones that are able to get these packages:
- Who are professionals. The professional packages are available only to professionals. When these loans first began professionals only included people that were doctors, lawyers and other professions such as these. However, now the definition of a professional has broadened to include anyone that earns a good wage or has a great asset portfolio.
- What are professional packages. The professional packages are packages that can be added to loans. While the loan will be the same and have the same features the professional package will give you some benefits.
What Loans are Available with Professional Packages
The loans that are available with the professional packages will vary depending on the provider where you get your loan from. However, most providers will generally offer a professional package with their standard variable loans and the fixed rate loans. Furthermore, some providers may offer the professional package with line of credit and other types of loans.
Features of the Professional Packages
The professional packages will generally have the same features. The features of the professional packages are:
- Discounted interest rate. The main feature of nearly all professional packages is the discounted interest rate. With a professional package you will generally receive around a 1%p.a. discount on the interest rate. This can equate to thousands of dollars over the life of the loan.
- Discounted account fees. Many of the professional packages will require you to pay an annual fee to secure the package. However, this fee is usually much lower than all the fees that are offered with the loan usually.
- Offset accounts. Some of the professional packages that are available will offer different features as a benefit. Some will offer features such as the interest offset account. The accounts will save you a lot of money if you have savings that you can put into the account.
- Make additional repayments. Many of the professional packages will offer you the ability to make additional repayments onto the loan account. This feature would usually not be available with the loan without the professional package and can help you pay off the loan faster and reduce the amount of interest that you will have to pay onto the loan.
A professional package is a package that is added to a loan that is only offered to people who have a large income or many assets. The professional package will give you a range of benefits that will reduce the amount that you pay onto the loan account. The professional package will reduce the interest rate of many of the loans and will even reduce the fees that you have to pay. Furthermore, the professional account may even add additional features to the loan such as a mortgage offset account.
Discounts on Professional Package Home Loans
Banks are very willing to extend discounts and benefits to people working within certain professions. The reason for this is usually because certain professionals are known to be lower risk borrowers than some other customers, so banks will encourage people within those professions to apply for home loans with them.
In order to make their mortgage products seem more appealing to these people, banks are often willing to negotiate for discounts on home loan interest rates, waive various fees and package up other banking products as part of the deal.
Of course, when most people hear that discounts are only available to certain ‘professionals’ they believe they’ll never be eligible to get some of the really good deals. This isn’t always true, as there are banks out there willing to reward other customers with reduced interest rates for various reasons too.
Professional Home Loan Discounts for Medical Professions
Banks are known to favour doctors as customers simply because they have a long reputation for being low risk borrowers. Of course, doctors also have a much higher likelihood of becoming repeat customers in the future as they borrow more to increase investment portfolios or apply for business loans.
The discounts offered may include reduced interest rates, waived LMI premiums or increased LVR limits before LMI will apply.
Unfortunately, not all doctors will be eligible for the medical discounts available. Those who may be favoured include:
- Doctors of Medicine
- Surgeons
- Physiotherapists
- Psychiatrists
- Veterinarians
- Dentists
- Chiropractors
- Physiotherapists
- Optometrists
- Radiographers
Psychologists, naturopaths and paramedics will not be eligible for the discounts available under Medico Packages.
However, this shouldn’t mean they can’t qualify for other types of professional package discounts available via other means and other lenders.
Discount Based on Loan Size
Many banks will offer professional package discounts to customers who have an aggregated borrowing amount that goes over a specified limit.
For example, St.George Bank offers discounts beginning at a loan size of $150,000. As the loan size increases, so too does the discount offered.
As a general rule of thumb, most banks may offer discounts up to 0.7% off the standard variable rate if the loan exceeds $500,000. These rates are clearly advertised on each lender’s website.
What those banks don’t advertise is that there are further discounts available for loan sizes over $1,000,000 as well.
High Income Borrowers
Banks love customers with big incomes. They’re likely to have higher savings, more investments and higher mortgages, which all spells more profits to a bank. Obviously they’ll seek to attract people who fit this profile in any way they can.
Of course, the discounts available won’t be because of their profession; rather the size of the loan taken out will determine the level of discount these people can receive.
High Net Worth Customers
Customers with a high net worth are highly sought after in the banking industry. These are customers with a net worth of more than $500,000, although the preferred type of customer would ideally have more than $1,000,000 in net asset value.
These customers are often experienced property investors with a portfolio of multiple homes and several mortgages. Experienced investors like these will usually have aggregated borrowings that add up to more than $1 million, but the asset value far outweighs the debt they carry.
Other common applicants that fall into this category are foreign investors and family groups.
Banks will happily negotiate for special discounts to these customers in order to keep their business.
It’s interesting to note that in recent years, many of the bigger banks have established “Private Banks”, or separate divisions specifically to cater for their higher net worth clientele. In order to become a “Private Bank” customer, clients must be able to verify an income of more than $250,000 per year in total from various sources, as well as show a substantial net worth figure (i.e. over $1 million net).
These super-high net worth clients not only receive discounted home loan rates and reduced or waived LMI premiums, but they also receive discounts on other wealth creation products, such as margin loans, stock broking fees, trading fees and others.
How Much Are Professional Package Discounts?
Different banks will offer slightly varying degrees of discounts to other banks. The advertised discounts available may also not be their best offer. You can still apply to negotiate for a special pricing discount over and above the regular rate you were offered originally.
Remember that the rates shown are the amount of discount you could receive off the standard variable rate (SVR). So whatever SVR your bank offers, the discounts will apply to this. It’s worth looking closely at the difference in SVR between banks before considering the final discount applied too.
As a rule of thumb, the general discounts offered without the need to negotiate are as follows:
Standard Professional Package Discounts:
|
Loan Amount |
Discount off the Standard Variable Rate |
|
$150,000 – $249,999 |
0.4% |
|
$250,000 – $499,000 |
0.7% |
|
$500,000 and over |
0.7% |
*taken from Westpac’s Premier Advantage Package discount rates
Remember that the lender will consider the total value of more than one mortgage held with them in order to qualify for these discounts. This could mean your home mortgage might be small, but adding the value of a mortgage for an investment property could tip you over to the next discount bracket.
As appealing as some of these discounts may seem, these aren’t the best offers your bank has hiding in its arsenal.
Negotiated Discounted Interest Rates
If you don’t ask, you don’t receive. So if you’re happy to receive the standard 0.7% discount off your mortgage and don’t request anything further, the bank won’t offer.
But if you know you’re a strong customer with plenty to offer that bank, you could find they’re very willing to arrange special pricing for you. This is especially true for full-doc customers with a high net worth.
| Loan Amount & LVR |
Discount off the Standard Variable Rate |
|
>$500,000 and <80% LVR |
0.8% |
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>$750,000 and <80% LVR |
0.85% |
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>$1,000,000 and <80% LVR |
0.9% |
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>$1,500,000 and <75% LVR |
1.0% |
Further discounts may apply on a case-by-case basis, depending on the strength of the client and the strength of the application submitted.
The key to receiving deeper discounts that most other people will receive is to negotiate with your bank. They do need your business to stay in business, so they will work hard to attract desirable clients.
If you’re not confident about negotiating for these things on your own, speak to a mortgage broker who specialises in high net worth individuals, or understands the discounts available for certain professional groups.
A good broker can help you figure out which banks are likely to offer you better options and they’ll help you to negotiate for your discounts. They may also be able to help persuade your bank to offer discounts and perks on other financial products as part of the deal.
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There are a great number of alternative solutions you might want to consider whenever you are looking to apply for a package home loan. Therefore, it is very important for you to read the following lines because they will provide you with some very valuable pieces of information that will help you take the ideal financial decision for you.
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