Unwrapped: Bendigo Bank's Ultimate Package

Shopping for a home loan is similar to shopping for groceries in that there is one simple rule:" don't be fooled by the packaging." With the number of different home loans available through banks and non-bank lenders, it is increasingly important for homebuyers to cut through the marketing hype and measure the true value of the package to their financial situation.

Bendigo Bank, for example, claims to have developed the "Ultimate Package" for homebuyers." They offer a 0.20% per annum reduction on their variable home loan rate for customers who have a Bendigo Transaction Account, and House Insurance, Contents Insurance or Loan Protection Insurance through the BBL Insurance.

The option of a discounted rate may sound appealing, but remember that discounts such as these may only bring Bendigo Bank's interest rate to the same level as the rate non-bank lenders may be offering." Explore all of your options before committing to one lender.

The Ultimate Package attracts an "optional" monthly account service fee of $8." Optional?" You may ask. Who would voluntarily pay a bank fee?" The option means choosing a 0.20% per annum discount on Bendigo Bank's variable interest rate, or opting to not receive the discount but to waive the monthly fee.

Bendigo's Ultimate Package also includes a discounted rate on their Red Credit Card, with a number of interest free days. They encourage having wages paid directly into their Mortgage Saver Account, and making repayments via periodical payments to receive a $50 discount on their $150 home loan application fee.

In addition to the application fee, a settlement fee of $55 applies, as well as legal and valuation fees, plus government fees and charges." Access to the Ultimate Package's redraw facility costs $25 per withdrawal, unless the funds are being transferred to a Bendigo Bank credit card account, in which case one free transaction is allowed each month.

So how do you know if something like Bendigo's Ultimate Package is for you?" Overall, having your accounts, insurance and home loan packaged into one neat parcel may be advantageous if you need a lot of extra features and are happy to keep all of your banking needs within one organisation. If you need only the essentials and have insurance, credit cards and accounts with a number of financial institutions, a basic loan may be more suited to your situation.

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