Package products 'could save money on home loans'

People looking for low interest home loans may be interested to hear advice from one organisation.

An article in the Sydney Morning Herald cites banking researcher Canstar Cannex as suggesting that consumers stay with one financial institution for all their financial services, such as savings accounts and home loans.

In this way, packages, which bundle together mortgages, credit cards and savings accounts can work out cheaper.

The firm explained many banks would be wiling to offer customers a discount if they took the rest of the products with it.

When comparing home loans, the findings showed that savings of over $2,310 a year could be made by taking a package option compared to the standalone mortgages.

This may come as welcome news to some, since a recent report revealed one in five people claimed they would not be able to afford their mortgage repayments if the home loan interest rates increased in the coming months.

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