Packaged loans offer best deal: CANSTAR CANNEX

by BN26 Feb 2010

Despite uncertainty over future interest rate rises, those about to buy a home can still take advantage of a rate below 6% if they opt for a package with its discounted home loan.

"The last time home loan rates were under 6% was when Abba and the Bee Gees were in their prime during the seventies," CANSTAR CANNEX financial analyst Mitchell Watson said.

He said that package loans generally compare favourably with standard variable loans mainly because the discount effectively means you're paying roughly 0.6% less.

"It's better than a honeymoon, or introductory, rate because it's for the life of the loan, not just a specified period." 

According to CANSTAR CANNEX, a packaged loan discount effectively gives you an upgrade to a more feature-packed standard variable loan for the price of a basic variable loan.

"This means there is no need to forego features like redraw and offset accounts in order to obtain a cheaper loan" it said.

On a loan of $250k, a package discount translates into almost $100 a month off the repayments.

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COMMENTS

  • by Broker 26/02/2010 1:28:38 PM

    Honeymoon rates are just a croc and should be removed from the market