The new credit card with a home loan rate

Home loan packages generally combine several products into a single bundle, often lumping you with products that you'll never use but you're happy to receive if it means you get that all-important package discount.

Don't get me wrong, the discount can be quite lucrative but it does cost around $400 in annual fees, normally.

P&N, Western Australia's largest member-owned bank, has launched Home Loan & Bag, a product that makes a lot of sense.

The thinking behind it is this: why not let consumers choose the products they want? And - even better: If we have their home loan, why not give then a credit card with a purchase rate that's the same as their home loan rate?

The product is simple: you get a low-rate variable home loan (4.15%) with free redraws and pay no establishment or monthly fee. It is available for owner-occupied lending up to 90% of the property value.

You can opt in for a credit card (no annual fee) or transaction account (no monthly or transaction fees, no minimum monthly balance). If you take up the transaction account, you can add an offset facility to the home loan.

As for the credit card, it comes with the benefits of a platinum card, such as access to a concierge service and complimentary insurance plans. Though not the first, P&N is among only a handful of lenders to link a credit card to a home loan rate.

Money verdict

This lender has been listening to its customers. Home Loan & Bag is flexible and fair and makes good sense. It's effectively a package home loan but without the usual hefty package fee.

Plus you get to add other products you may want.

Best of all, if you do decide to take up the credit card, the purchase rate on the card is the same (variable) rate as for the home loan - 4.15%. (It has the usual 19.99% cash advance rate.)Thumbs up!

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