Packaging all your financial products and services with one institution can save you thousands.
That's the advice from banking industry researcher Canstar Cannex. They suggest that home-loan packages that bundle together a mortgage, credit card and transaction account can be considered as a good deal.
Putting all your financial services into one, with one lender can help the consumer and the lender.
Financial institutions use measurements such as "cross-sell" (how many of the institution's products each customer uses) and "share of wallet" (how much of the customer's banking business goes to the institution) to determine the effectiveness of their retail banking operations.
Customers who can generate more revenue for the bank through multiple products can negotiate lower rates in many instances.
The discount on a variable home-loan rates for these "packaged deals" is usually between 50 basis points to 70 basis points. Borrowers who are considering basic home loans may find savings in this form of loan, and the other benefits such as convenience and ease of repayments, can prove to help home owners manage their finances.
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