Jon,
Are you able to indicate to me what rate StG would offer for loan size >4 million?
St G & NAB variable rates (residential)
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Jon,
Are you able to indicate to me what rate StG would offer for loan size >4 million?
Yeah $4m is a bit for one lender. I say they would be happy to take half of it, depending on your strength and LVR of course.
they would run a mile
more important to ask what LVR would u like with that
ta
rolf
I can run faster
LVR 70% but I am just curious at what rate they would offer.
I am currently with ANZ for that amount and LVR around 70% with 5.06% variable
I can run faster
LVR 70% but I am just curious at what rate they would offer.
I am currently with ANZ for that amount and LVR around 70% with 5.06% variable
Done correctly, and assuming they want the business, and if you then look to move again in 2 years time JM might ? be able to get you an effective rate of 4.8v or less
ta
rolf
Then what happens when you ask to increase in the loan , do they give a larger discount, are they not concerned with what security you have, or how you propose to service loan. It matters to my bank managers. Different securities have different rates and different LVRs. In 2010 I asked St George about increasing a loan first they said no more because they didn't like to lend more than $1.2 m even tho my LVRs were only 50%. Broker put the loan out to tender St g and Westpac only ones interested St G tendered 9%, 2.0 more than existing loan there. West Pac tendered 7% + .05 line fee on the provision the loan was more than $600k and less than $1.2m again they don't like lending more than that. In feb I sold one of the 6 crossed properties no problem West Pac said I could keep the same loan limit but I told them to reduce it effectively reducing the interest rate by reducing the line fee. Higer loan amounts don't necessarily mean cheaper rates.
there is one reason why it makes it tough to negotiate with existing lenders.
Not always, but usually they have an all or nothing attitude.
No probs having a bunch of IPS with the one lender, but xcoll tendsto give them confidence that one wont move.
ta
rolf
Hi, the rate would be below 5%. Whether or not you would want to have that amount of lending with one lender is another story.
Not all banks work on strength and LVR for pricing. That is for assessment only.
If you increase the loan size at a later date you might be able to get a bigger discount but that is hypothetical as we dont know what banks margins are going to be into the future. As long as all the securities are residential i dont see why you would be paying different rates for your loans? Secondly most banks including st G have no problems with loans above 1.5 mil.
thats a little broad ...................
I expect the LVR has a bunch to do with it where a single security is involved
On the GC especially, try and get a 2 mill plus away at 80 %........possible, but certainly no problems
Technically, NAB will go to 2.5 at 90 % even..................but would be an interesting transaction
ta
rolf
Its not a case of having an issue for loans over $1.5mil - the big issue is the LVR restrictions at those loan amounts. This varies greatly amongst lenders. NAB hands down wins in this area for mine.
not uncommon feedback, having said that almost all lenders cop a pasting at some stage, much of it due to individual people that have no care for their personal or employer brand.
ta
rolf
Yeh, but it doesn't mean you cant move or wont. Just because some properties are crossed doesnt mean you cant move. Do it regularly 4 banks in 10 years .
Perfect borrower for a rebate broker, done the right way you should be able to get an effective 15 to 20 pts off any direct negotiated rate on an ongoing basis
ta
rolf
Here is one for you.
St George is our main lender and we asked for pre approval for our SMSF.
Other banks replied within 1 week.
Still waiting on St George 11 weeks on. Ended up having to bail up Gail Kelly last week at a function to get the State Manager to try and resolve this.
His argument was that you should purchase the property first and then apply for funding hence the delay.
What really shocks me is that we are often advised that St George is the better lender for SMSF's.
St George is our main lender and we asked for pre approval for our SMSF.
Other banks replied within 1 week.
Still waiting on St George 11 weeks on.
Ended up having to bail up Gail Kelly last week at a function to get the State Manager to try and resolve this.His argument was that you should purchase the property first and then apply for funding hence the delay.
What really shocks me is that we are often advised that St George is the better lender for SMSF's.
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