Mortgage packages on the rise
Half of Australia’s new mortgages are part of a package deal, according to a new study, which revealed that $130 billion of lending commitments in 2007 were granted as part of a deal.
A mortgage package or deal is one that combines a mortgage with a transaction account and credit card at the same financial institution, according to business information firm Datamonitor, which conducted the study.
The popularity of mortgage packages, once known as professional packages, is set to continue as banks cash in on deals that appeal to price-conscious consumers.
Commenting on the research and benefits of a package deal, Datamonitor financial services analyst Petter Ingemarsson said packages offer mortgage rate discounts of up to 70 basis points off the standard variable rate.
“The second reason is that packages generally consolidate banking fees into a single annual package fee, which can entail fee savings for some customers,” Ingemarsson said.
“Finally, mortgage packages are a convenient way to manage banking needs, especially for customers with several loans,” he said.
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