Beware Deferred Establishment Fees
Borrowers often confuse multiple loans under one package, such as a professional package, as being treated as a single loan because they get the same rate discount and one annual or monthly fee takes care of everything. However, lenders don’t make the same mistake. Most loans covered by a package are subject to a per loan deferred establishment fee (DEF), so even though it is one-package-one-fee for some things, if you have two loans that you want to break, you may be stung for two DEFs
Did you know?
The discount you get with a pro pack can be improved by as much as 30% if you arrange your loan with a mortgage broker who rebates their ongoing commission to you.
Tip for pro pack users
If you are a predominantly fixed-rate, pro pack borrower, you should take a look at St.George, Commbank and Westpac, which discount their fixed rates as well as their variable rate loans. This discount tends to be 0.15–0.20% pa regardless of
the loan amount.