Professional Package Home Loans

Professional Mortgage Package loans (Pro Pack) came about in the late 1980’s. Initially, these Professional Package loans were introduced by major banks to customers who were part of a professional association like doctors, engineers, accountants and solicitors.

Being an associate of these types of professions allowed you to borrow from the banks with a significant discount applied to your loan. This discount was usually 0.5% – 1.2% off the Standard Variable rate available at the time, in most cases, for the life of the loan. Discounts using Professional Packages are not necessarily kept to discounting variable loans. A professional package loan is also possible with a fixed interest rate loan, 100% offset,  as well as lines of credit loans.

However, in the late 1990’s this began to change with the advent of more competitors in the Australian home loan market. During this period, many local banks feared the new competition by other new lenders entering the market, and began to offer discounted loans to customers borrowing over a certain amount. In most cases, discounts on loans were made for loan amounts over $150,000. Higher discounts were to apply for loan amounts over $250,000, $500,000 and so on.

In addition to offering discounts on rates, Professional Package home loans offer discounts on fees with many being waived or replaced by a single fee. This could vary from lender to lender, and it is possible to get a professional package loan with a combination of discounts applied to the interest rate, as well as having fees waived or reduced.

At Mortgage Providers, our staff have extensive experience putting together Professional Package Mortgages tailored to suite a client’s needs and expectations.