Home News The rise and rise of professional packages

The rise and rise of professional packages

Font size :

Professional packages accounted for 52% of all home loans written in the quarter to June 2007, a 12% increase from a year earlier according to a report from broker group Smartline.

The surprising statistic marks a fight back by the 'Big 4' banks that have responded to increased competition in the home loan market from non-bank lenders.

The data suggests that many borrowers see the option of paying one upfront annual fee for a feature-packed loan at a good rate as preferable to paying separate transaction fees.

Chris Acret, managing director, Smartline, said: "With recent increases in petrol prices and interest rates, borrowers are more price sensitive than ever and are continuing to take advantage of intense price competition between lenders. In many cases professional packages represent better value for money than traditional 'no frills' loans that offer lower headline rates."

Acret said that most people employed in professional industries and earning more than $50,000 per year would qualify for a professional package, but added that many people are not aware of them.

The Big 4 lenders consisting of Commonwealth Bank (CBA), Westpac, ANZ and National Australia Bank (NAB) accounted for 64% of all loans written in the quarter to June, an increase from 60% a year earlier.

The survey shows that CBA continues to lead the market followed by ANZ and Westpac, while BankWest and ING lost market share for the first time in two years after several quarters of market share gain.

Acret said: "The 'Big 4' lenders are responding more aggressively than ever to try to recapture the share they've lost to the newer entrants and they're finally starting to regain some ground."

With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now

Mortgage News and Articles

Many millennials are relying on an inheritance to buy homes Many millennials are relying on an inheritance to buy homes

Lawyers are seeing cases where disputes over inheritance have created tensions within families Read more

Gen Y homeowners fearful of interest rate rises Gen Y homeowners fearful of interest rate rises Many are worried rises will negatively impact their cost of living expenses, according to a new survey ... Read more

Young Sydneysiders are less keen on homeownership Young Sydneysiders are less keen on homeownership Many would rather ‘rentvest’ than be tied down to a costly owner-occupier mortgage, according to new studies ... Read more

New social housing aims to transform Ivanhoe Estate New social housing aims to transform Ivanhoe Estate The sprawling redevelopment aims to boost the supply of affordable housing in Sydney ... Read more

More mortgage news and articles

Sponsored Links

Wednesday, Aug 23, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Let us help you find the right home loan for your needs.

Tell us a bit about your circumstances:
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords