There are basically two types of professional home loan packages in the market each providing different qualifying criteria.
- Standard Professional Home Loan Packages
- Premium Professional Home Loan Package
Standard Professional Home Loan Packages (also known as Home Loan Package)
This type of Professional Home Loan Package is based on the actual loan amount levels that you borrow whereby the minimum threshold would need to be met (this depends on the lender however, it ranges from $100,000 to $250,000 as a qualifying criteria) before you can qualify for the benefits rather than providing evidence of professional qualifications.
This package offers a full featured product with interest rate discount off the standard variable rate with full loan flexibility with salary crediting and internet banking. This type of package is considered as a standard Professional Home Loan Package which is offered by most all lenders. These loans are also referred to as Portfolio Loans due to its flexibility to structure them into many sub-accounts.
Premium Professional Home Loan Package
This type of loan offers all the features of the Standard Professional Home Loan Package with a few added benefits such as;
- Larger discounts off the standard variable rate
- Discount off the fixed rates
- Waiver of the annual package fee
- No monthly account keeping fee
- No ATM fees and no EFTPOS fees
- No future loan increase fee
- No valuation fee
- No Transactional account fees
- Offset account offered with full redraw facility
- Salary crediting
- Direct debit facility
- Flexibility of repayment options
- Interest only or principle and interest repayments
- Sub-accounts available for ease of managing the loan or structuring the loan for investment purposes and taxation efficiencies
- Able to pay for interest in advance to maximize taxation benefits at end of financial year
The addition of these added benefits make the premium home loan package very attractive and extremely competitive when compared to other loan packages in the market place.
These days most banks and other lenders charge an exit fee or a deferred establishment or discharge fee if you refinance or sell the property within the first four years of the loan term so be sure you cover this aspect with your loans officer.
The premium professional home loan packages are marketed directly at professionals that are members of Professional Industry Associations and members of certain Industry Superannuation Schemes.
Professionals are now rewarded for their commitment to their industry. As a member of a professional association or industry recognised institution you could be entitled to additional benefits such as discounted home loan rates, discounted fees, offset accounts; re-draw facilities with option to split your loan into sub-accounts for ease of managing your loan or structuring your loan for taxation efficiencies.
A Premium Home Loan Package can save you thousands of dollars in fees and charges over the term of the loan. They have the flexibility and provide fee free banking to give you the unfair advantage.
These loans also provide the ability to borrow in a personal, trust or company name.
These Premium Home Loan Packages are exclusive and are not advertised in the market place but rather are marketed at a specific target audience.
A leading component of measuring value of any home loan product is by looking at the comparison rate displayed. Always ask the lender to show you the comparison rate or the true rate for a particular loan product. The best value home loan product is where the advertised rate is equal to the comparison rate and offers all the features outlined above.
How do I know if membership to my Professional Association or Superannuation scheme qualifies for the Premium Loan package?
Please register your enquiry to learn more about these benefits and whether membership of your Association or Superannuation Scheme qualifies for these Home Loan Packages!
Note on Loan structuring
Home Loan structuring should always be implemented with your current financial needs in mind – it should be flexible with the ability to easily increase loan limits when required with the facility of salary crediting with mortgage offset.
However, lending structures need to be adequate from a taxation, legal and estate planning perspective. You should discuss all loan structures with your accountant, solicitor or financial planner for consideration.
Loan flexibility starts by simply arranging the total loan into split loan accounts or sub-accounts and taking full advantage of loan benefits such as discounted rates and fee free banking as per above details.
Disclaimer: The above is a generic representation only. It does not constitute financial advice or mortgage structuring advice. It is only to be used as a guide only. Please discuss your financial needs with a financial planner, accountant or your banking representative.
No reliance should be placed on the above information.