Most lenders naturally want you to use their banking products when you borrow home loan from them. In order to encourage you to do so, they offer the home loan into two broad categories – basic home loan and package the home loan.

When you choose the package home loan, they charge you some annual fee but also offer you lots of incentives such as no annual fee on the credit cards, provision of an offset account, ability to split your loan to fixed and variable, etc. Don’t be afraid of annual fees, if you knew how to use the package properly and set your money management accordingly, you will reap more benefits than that you pay on annual fees.