What is annual loan fee?
Annual loan fees (commonly $395-$495) are charged once per year by lenders offering a 'professional package' product — the fee covers a transaction account, credit card, and a discount of 0.50-1.20% off the standard variable rate.
Annual loan fees are most commonly part of a 'professional package' or 'home loan package' — a bundle of products under one annual fee instead of a monthly loan-service fee. Typical annual fees are $395-$495.
Math: a 0.80% rate discount on a $500,000 loan saves $4,000/year in interest, easily covering the $395 fee. On smaller loans the math reverses — a $250,000 loan with the same discount saves $2,000/year, so the fee is still worth it but the margin shrinks. Below $150,000 the discount frequently doesn't cover the fee.
Most lenders waive the annual fee for the first year as a customer-acquisition sweetener. Some also waive it permanently for borrowers above $1M loan balance or premium banking customers. Worth asking — the lender can usually waive it without escalation.
package fee · annual loan fee · loan service fee
- Professional package loan — A package loan bundles a home loan with a transaction account and credit card under one annual fee (commonly $395-$495) …
- Comparison rate — Comparison rate is a statutory percentage that folds standard upfront and ongoing fees into the headline rate on a $150,…
General information only — not personal financial advice. Verified against https://ratesniffers.com.au/glossary on 2026-06-01.