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.
Recommended for you
Insignia Financial has reached a major milestone in completing the separation of MLC Wealth from NAB, having acquired the firm back in 2021.
There could be changes ahead for how ASIC requires licensees to handle conflicts of interest as the corporate regulator announces it will be meeting key stakeholders next year to update guidance.
Proper recordkeeping has been described as the “mortar between the bricks” of the advice process and critical to an FSCP decision as an adviser is suspended for failures in this area.
As investors increasingly seek to embed ESG considerations in their portfolios, a specialist adviser has offered tips for financial planners who may feel overwhelmed in tackling these complex topics with clients.
