Home Loan 'Package' Fees

ShortyX on 06/08/2017 - 09:51

Hi all

Just interested to see how many OzBargainers pay the $300-$400 'package' fees for home loans that usually offer interest rate discounts, loan options and other account keeping fee savings.

We just got hit with our annual fee and based on the account keeping fees that we'd normally be charged, it seems worth paying it but just thought I'd check with the community to see if there are better value alternatives.

TL;DR - do you pay an annual 'package' fee for your home loan? If not, what other types of fees do you pay?

Financial

Comments

  • chumlee on 06/08/2017 - 10:04

    It's like paying a joing fee at a gym. They want you to pay a fee to be a customer so they can debit your account fortnightly/monthly.

    No thanks

    • Sweetnsour on 07/08/2017 - 13:00

      Bad example. It's more like costco. Pay annual fee to be entitled to discount.

  • poboy on 06/08/2017 - 10:05

    I actually called up about 2 weeks ago. I had to speak to the branch manager… Call centre couldn't do it. He reluctantly did it as my I hadn't asked for it before.

    It sure appeared as if the manager could only do this for a few people every few weeks. I fit the impression it was tightly controlled.

    About 5 years ago I did the same thing and it was a lot easier.

    • kipps on 06/08/2017 - 10:08

      Are you saying you got the annual fee waived? Waived just on this occasion? Which bank?

      • poboy on 06/08/2017 - 10:17

        Nab. They only let you waive once per request.

        • DryScissors on 06/08/2017 - 10:32

          So they waive it every time you request? That's fantastic.

  • kipps on 06/08/2017 - 10:07
    +1

    Used to not have to pay annual fee, just a $4/month fee for a single offset account. Needs changed, and now pay a $395 annual fee for a package with unlimited offset accounts and credit card. Not too fussed in credit card, but the rate discount and better flexibility for more offset accounts works.

  • dcep on 06/08/2017 - 10:21

    the only thing that's worth paying for the $399 "package" is the offset account, and they know you want it.

  • nocure on 06/08/2017 - 10:52

    What fees?

  • GangGang on 06/08/2017 - 11:03

    I have family member that is a bank employee & my package fee is waived every year. I also receive all the other benefits the package includes. Though i still look to see if there are cheaper options.

    • acer4una on 09/08/2017 - 22:40

      Which bank is that?

  • Skramit on 06/08/2017 - 11:06

    No fees here and I'm with ANZ at 4.04% with free Black credit cards and free offset account.

    Meaning I'm getting a better deal than some people on 3.8% for example paying the package fees.

    It's all about the comparison rate and my comparison rate is 4.04% :D

    • dcep on 06/08/2017 - 12:26

      not sure why you got neg.

      but is that a standard deal or need to have connections ?

      • Skramit on 06/08/2017 - 15:52

        No idea why negged either. People are funny.

        It's a standard deal yes. I've shopped around but nobody can ever beat it as they all want to charge a $395 fee which makes the comparison rate around 4.3

    • Ash-Say on 06/08/2017 - 13:20

      Are you sure you are getting free black card and offset account without paying annual fee of $395?

      • Skramit on 06/08/2017 - 15:52

        Very sure. No fees is the way to go. Black qantas frequent flyer cards too.

    • tassieeagle on 06/08/2017 - 15:17

      Hmm might have to call my bank and ask for a better deal. Can you explain your situation in more detail or link to where ANZ offer this?

      On 4.24% with Nab and paying them $395 for their package. Not happy

      • Skramit on 06/08/2017 - 15:55

        My deal is 1.16 discount off the standard variable which at ANZ is currently 5.20%. Originally they wanted to charge me $10 fee or something for the offset per month but at the time I told them I'll walk if there's an offset fee.

        This was all done 5 years ago. I recently asked for a bigger discount on the rate but they wouldn't budge.

      • burningrage on 06/08/2017 - 18:20

        The package or professional fee you are paying is to access the discounted rate (like 1.4% off the bank's Standard Variable Rate) but over time I learn that is a mirage. The end result is what matters in the end.

        A bit like a cloth store saying 50% off but the price is up 50% first. In the end, my interest rate was 3.99% when everyone else was at 3.79% to 3.89%. They set the Standard Variable Rate at ridiculously high.

        Citibank $350 package fee. Got Citi Prestige for $350 per annum. That's all I've got.

      • Sweetnsour on 07/08/2017 - 13:03

        Could be p and I, and yours interest only. The spread between the two is getting bigger.

  • theyetti on 06/08/2017 - 16:26
    +1

    We used to have the ANZ Breakfree package but we transferred to loans.com.au.

    Much better interest rate plus no package fee saves us around $2.4K a year. Apart from the standard loan establishment fees there are no ongoing account fees.

    • angelkulit025 on 07/08/2017 - 13:47
      -1

      +1 for loans.com.au.

      after setup, i've never looked for anyone offering for the lowest rate as i'm assured they've got it.

  • MadgeH on 06/08/2017 - 16:54
    +1

    Bear in mind that sometimes paying the $395 is cheaper than paying a higher rate without a package fee. It depends on your loan size and the gap between the two interest rates.
    I'm a mortgage broker and ex bank employee, happy to take it off line for whoever wants to PM.

    Edit: not allowed to solicit or mention 'offer' in post so have deleted

    • ShortyX on 12/08/2017 - 12:19

      In your experience, is the annual fee waived often? It seems from the posts here that it can be waived. I tried but was unsuccessful.

      • tinnybastard on 12/08/2017 - 12:21

        No luck either. ANZ rep said they'll consider waiving for leading over 700k.

        • ShortyX on 12/08/2017 - 12:23

          Before we were charged the package fee, I was able to negotiate a good rate down to 4% (now down to 3.92% as the bank reduced their interest rates overall) but I feel that since I negotiated a bigger discount compared to the package discount, the package fee seems like a bit of a money grab.

        • naritas on 12/08/2017 - 14:24

          @tinnybastard the ANZ rep, to their credit, was probably being pretty honest with you unless you fall into one of the following categories:

          1. ANZ (or any bank for that matter) is making substantial revenue from your other accounts with them (insurance, financial planning, leasing, business accounts, etc).
          2. The actual interest rate you are on isn't the sharpest they have on offer (so the fee waiver is offset by their added profit from the rate).
          3. You have a loan with a very low LVR (likely under 50% definitely not exceeding 70%).
          4. You've been a long time loyal customer and during that time you paid annual fees or had a rate that wasn't particularly sharp.

          If you tick none of the categories above, realistically, your time may be better spent examining a smaller bank if rate/fees are of greater importance to you than the size of bank you deal with.

          Hope this helps.

    • peterpeterpumpkin on 01/09/2017 - 10:30

      Is the annual fee tax deductible for investment properties?

  • Gunther on 07/08/2017 - 09:49

    NAB $395 Home Loan Annual Package Free.
    -Home loan 6 years old.
    -Home loan fee successful waived 6 years running.

    Couple of complaints via the call center in contrast to other banks not charging annual fee or a decent bank manager can assist. Its definitely worth your time.

    • drose1 on 25/10/2017 - 19:51

      late to the thread. you're saying you've had your annual fee waived 6 years in a row by calling through to the call center and making a "complaint"?

      do you mind me asking what type of complaints you made to get them waived?

      • Gunther on 26/10/2017 - 10:17
        +1

        Exactly as above, "other banks do not charge annual fees for the same product such as bank xyz and bank abc - can you please waive the fee or I will start to shop around".

        • drose1 on 26/10/2017 - 10:35

          mad! thanks mate.

  • cupcake on 07/08/2017 - 16:28

    I just paid this annual $395 wealth package. It works out to be only a little bit better for me.
    I'm with CBA. Has anyone asked to have this amount waived? They waived it for me last year when I re-financed.

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