Discount home loan packages get bigger

The best discount home loan packages, which are generally available to people with mortgages of more than $250,000, have increased their average rate discount in the past 12 months from 0.85 per cent to 1.0 per cent.

But many borrowers may be missing out on thousands of dollars of interest savings simply because they haven't reviewed their home loan or spoken with their lender.

Package banking is not free and can attract an annual fee of up to $400 but the annual interest saving on a typical $300,000 home loan is $1600 to $2300.

Real estate investors can get bigger benefits because the package rates can apply to all of their loans, which means someone with three $300,000 mortgages can be up to $7000 better off each year by using a package.

Source: The Daily Telegraph