Info on St George Pro Pack needed

[Puppeteer]

Hi y'all,

Now that I've got the new PPOR settled, I'm revisiting the fun I was having with St George, getting landed with the 0.5% Pro Pack discount, after getting approval for (and expecting) the 0.7% discount.

The complaints process at St George is a slow and painful affair, and I may still follow up the complaints with the Banking Ombudsmen because I still beleive that what they did was wrong but this process isn't getting me the 0.7% discount that I wanted.

So I'm thinking of refinancing.

St George are now offering the 0.7% discount again, and I can get the application fee waived to refinance with the new package.

From my calcs, I'll save about $2500 over 5 years by refinancing the same loans with the same bank.

I've had both properties mortgaged to St George revalued in the last 2 months for a LOC, so they shouldn't need to be valued again.

I have 2 questions.

1) Are there any other break costs associated with refinancing this loan (variable) having taken out the original loans in July?

2) I'm thinking of taking advantage of their current low 5 year fixed rate for the more expensive loan. Will the variable loan (for $85K - total loans with St George of $266K) still come under the pro pack?

Thanks to all in Advance.

 

[Rolf Latham]

Hi Pupps

This is largely because STG uses pricing as a business process re engineering tool :O)

Check your contract for a deferred establishment fee, they do vary a lot, there isnt mcuh consistency, none, 1000, 2000. BUT because youre doing an internal refinance they should waive them otherwise tell em youre going elsewhere where the pricing is similar but the service is better - that usually moes them

STG discounts are relationship based so any loans on variabel should stay the same as they were.

BEWARE that a bigger discount of .7 may not apply though unless you take new borrowings over 50 000, work hard :O)

ta
rolf

 

[Puppeteer]

Thanks Rolf,

Are you saying that I'll need to borrow an additional $50K to get the 0.7% pro pack discount. That'll mean buying another IP which is do-able, I guess.

Currently I have the pro pack (albeit, just after the July 12th Rate Change)

P&I - $85K - 0.5% Discount
IO - $181K - 0.5% Discount
LOC - $50K - 0.6% Discount

What I am planning

IO - $85K - 0.7% Discount
IO (Fixed 5 yr) - $181 K
LOC - $50K - 0.6% Discount (I won't be refinancing this).

Will they do this, or will I need to make the $181K loan variable as well to qualify for the Pro Pack?

Will I need to pay the mortgage stamp duty again?

 

[sbe]

In Victoria (at least) with a refinance, you only pay mge stamp duty on the upstamp (ie increase).

 

[Rolf Latham]

Hiya

I recall WA is full stamps on refinance :O(, dont do much work there though, so may be a way around it

Ta

rolf

 

[Puppeteer]

Yeah, WA has full stamps on each refinance, though I can't remember is it's on the loan document or the mortgage document. The mortgage won't be changing, just the loan account number basically.

I'll go and have a read through the loan offer to see if there are any deferred establishment fees payable.

Any idea about whether St George would refinance as proposed above (forgetting about the fees for the time being)?

Cheers

 

[Joe D]

Puppeteer

My understanding with CBA is the mortgage stamp duty in WA is only on the additional loan amount as per sbe's comments for Vic.

Joe D

 

[Rolf Latham]

Hi Pupps

STG is relationship based discount so any new loan amount should attract the relevant discount if its variable.

I would argue if youre pushing an extra 50 k then you should be able to do it.

Document and put in front of lender as scenario

ta

rolf

 

[Bluechip]

0.7%

I have the pro pack with BOM which was getting 0.7% discount on all variable loans in it
Did a top-up on a LOC in July and they created a new loan (rather than topping up existing one) and gave me 0.5% on that one!
I've been battling ever since to get the 0.7% and they just pass the buck between the Mortgage Centre in Adelaide and the branch.
They say the biggest discount available now is 0.6% and I might get that if I do a letter of variation , which I've done, and am still waiting.
Pretty poor considering all accounts are with them and total borrowings near 700k.
Anyone have a similar experience?
It's a bit drastic to refinance the lot and popbably not a great idea to threaten to do so?
The offer doc on equity loans says the bank can require it to be paid in full at any time they choose - kinda makes me nervous!
Cheers
Bluechip

 

[Rolf Latham]

Hi BC

If your relationship is less than 500 k then 50pts is all you're going to get.

Thats why they did you the "favour" of deoing a new rather than a top up loan. if they had topped up the old one then that entire amount would be at the lower discount.

ta
rolf

 

[Puppeteer]

Thanks heaps for your help Rolf (and others).

My broker has scheduled a meeting with St George to review my file in light of my disatisfaction, so I'll hold off the refinance until after that meeting. Though I am tempted to fix the $181K with their current low fixed rates anyway.

Hmmmm - lots of thinking to do...

 

[Bluechip]

Originally posted by Rolf Latham
Hi BC

If your relationship is less than 500 k then 50pts is all you're going to get.

Thats why they did you the "favour" of deoing a new rather than a top up loan. if they had topped up the old one then that entire amount would be at the lower discount.

ta
rolf

Just added my loans up .....
You're spot on Rolf !
350k before top up
topped up to 500k
then added IP loan of 240k
new total now 740k

Doesnt that make me a valued customer?
Why would they play hardball over 0.1-0.2%?

Bluechip

 

[Puppeteer]

Originally posted by Bluechip

Why would they play hardball over 0.1-0.2%?

Bluechip

Probably for exactly the same reason that you and I are playing hardball over 0.1-0.2%

 

[justice]

Hey guys It is not confined just to St George, I am currently in the process of challenging Westpac over some of their discount decisions. I ge the 0.7 % discount and got a preapproval certificate from them in September, and was quoted the 0.7%.
Well these two new investment would attract the rate of 0.6% not 0.7% .My borrowings are over $500,00 and will be 7360000 by the time I am finished. When was the change made???No one will take responsibility within the Sydney head quarters.
When I lodged a complaint about this I was asked why should I get the 0.7% again? I replied why should I stay with you!!!!
I have contacted St George and can obtain the 0.7% because I asked for it!!!Also it depends on who you speak to and who you use -a mortgage broker or just lodge the application over the phone. Oh I was just informed yesterday that my other topup application for my equity loan to buy the first property was declined !! why I asked because even the finance manager at one of the local branches advised me to do this.
And a preapproval certificate is not worth the paper it is written on But that is another story,,,,,!!!

 

[Rolf Latham]

Hi BC

Hardball its not policy it is ...

Could be worse, you may not know but they were going to reduce the discount on established loans as well and get us to deliver the good news.

They had second thoughts about that one ..............

ta

rolf

 

[Steve KKK]

I was told by Westpac that if you are currently getting the 0.7% discount on your loans, do not close all your loans if you are re-financing within the bank. To keep the 0.7% discount you must keep at least one existing loan open. If you do close all your current loans and have them open new loans, you will lose the full 0.7% discount and the new maximum discount of 0.6% would apply (if borrows total 500k or more).


Steve KKK

 

[Puppeteer]

Just an update.

St George came to the party. Don't know what my broker said to them, but it worked.

I'm still taking the opportunity to shuffle the loans around a bit though - to get things EXACTLY as I want them before I launch into the next property.

I'm going to fix the $181K loan at 6.95% and leave the $85K loan variable, but change to interest only (from P&I).

Does anyone know if St George will lend funds for properties held in a Hybrid Discretionary Trust Structure?

Just trying to plan ahead.

Regards

 

[Rolf Schaefer]

St George will will lend funds for properties held in a Hybrid Discretionary Trust Structure, however, be aware that they will not use income from a guarantor for serviceability.

 

[Puppeteer]

Thanks Rolf.

I guess that makes sense that they don't use the guarantor's income for servicibility, because normally the guarantor isn't primarily responsible for paying back the loan.

I guess it begs the question: Will they require a guarantor for this type of loan (assuming that I wouldn't need one if I was buying the property in my own name)?

I assume that if I was taking the loan out to buy a property in a trust structure that I would be considered the applicant and not the guarantor. Servicibility isn't really an issue for me at the moment (as long as they count my income for the loan.)

Thanks again for your time.

 

[Rolf Schaefer]

St George likes to see the trust beneficiary as guarantor.
If you and your wife are beneficiaries then it would be ok for you to apply for the loan (and use your income for serviceability) and have your wife sign as guarantor since she is a beneficiary. I hope this makes sense.