Professional Packages

Professional package are usually for higher loan amounts but gives you discounted interest rates and other benefits.  The bigger the amount borrowed, the bigger the discount can be. Its name is a misnomer for it is not just for professionals but its discount values and qualifications vary from one lender to another.

The packages that are offered to borrowers rely on the loan structure and the loan amount. Variable rate home loans of at least $150,000 can get a 0.50 to 0.70 percent interest rate discount while fixed home loans and Line of Credit loans can incur discounts of 0.15% and 0.60% respectively.

If you have more than one home loan, a professional package will work to your advantage. These discounts can be used for other services in the package. Therefore, you could end up paying more if you only have a few loans under your belt.

Professional packages carry an annual fee of $350-$700 which covers the application fee for all loans involved, the waiver of the annual credit card fee and other transactional fees. The annual fee also cover other loan features like personal insurance, financial planning, home insurance and margin loans.

People with different investment loans with varying repayment amounts can avail of portfolio loans. For a portfolio loan, you only have one transaction for a number of sub-accounts which are usually from 12 to 18. This loan can be managed over the Internet but its prices are slightly higher than Professional Packages.

On a positive note, a portfolio loan gives more flexible features for its terms and conditions vary for every lender. But to have a clearer view on portfolio loans and professional packages, it would be wise to consult a mortgage broker before applying for one.