Borrowers save with package loans: Canstar Cannex

Borrowers can save $2,000 a year by opting for a package home loan over a standard variable home loan, according to Canstar Cannex.

The report shows that package loans offer rate discounts of 0.7% for larger loans, tapering down to 0.5% for loans under $250,000. While borrowers are charged an annual fee of $350 for package loans, Canstar Cannex head of research Steve Mickenbecker says the interest rate savings compensate for the high annual fee.

"The short answer is yes, particularly if you are borrowing more than $250,000," he said. "The annual fee is fixed so the larger the mortgage, the lower the impact this fee will have on overall cost." 

Mickenbecker adds that the cost is offset by a free transaction account and credit card.

Find the report at http://www.canstar.com.au/.