St George Advantage offer

Having just made an offer on what could be IP3, and wanting to stay on variable rates + potentially a new lender (don't wanna go into 7 figures debt with my existing lender), the new St George Advantage offer (http://www.stgeorge.com.au/promos/yourhome/home-loan-variable.html) is looking ok to me:
- 1.1% off for 12 months -- a bit of risk hedging just in case if we have a rate rise or two in next year
- then ongong discount of 0.7% (I'll be borrowing 400k) -- which seems better than other big 4 at the moment

Are there any catches with this product / offer from St George?

Also, I can't find any deferred establishment / early exit fees for this product/offer on their site. Anyone happen to know what they are?
 
Just out of curiosity, assuming you already have a professional package with your current lender, why would you want to get another one?

Wouldn't a basic variable rate loan with a discount lender (like heritage or something) be a cheaper option?
 
Def is 0.90% of original loan amount over 4 yrs, st. g fee machine once you're in.

Maybe look at the BW offer if it fits. Although that being said BW usually doesnt have as good fixeds as SGB.
 
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Just out of curiosity, assuming you already have a professional package with your current lender, why would you want to get another one?

to avoid getting into a bigger debt with my existing lender. Dont wanna have all my eggs in the same basket

Wouldn't a basic variable rate loan with a discount lender (like heritage or something) be a cheaper option?

I thought about it ... but need the flexibility usually offered by the banks (in this case WBC) around LOC's / future equity
 
Def is 0.90% of original loan amount over 4 yrs, st. g fee machine once you're in.

Maybe look at the BW offer if it fits. Although that being said BW usually doesnt have as good fixeds as SGB.

yikes ... 0.9% is a bit harsh. Any other catches / unusually large fees or penalties besides this one?
 
I wouldn't be sold on the St George offset account, but if you're with another lender, you may have an offset there so it's not a big deal.

The St George offer is quite good as long as you're no planning on moving soon. I'd also expect their service levels to get totally trashed in the near future.
 
Just out of curiosity, assuming you already have a professional package with your current lender, why would you want to get another one?

Wouldn't a basic variable rate loan with a discount lender (like heritage or something) be a cheaper option?

The Heritage Basic product is off the market for the moment (unless you're an existing customer) as their servicing levels blew out to far. I've heard when it finally gets relaunched the rate won't be anywhere near the 4.82% currently advertised.

The $395 fee with STG may seem an extravagance if already paying a fee elsewhere but I guess you could call it an insurance premium against having all the debt in one basket.

Pitfalls with the STG product are the DEF already mentioned, having to x-coll and futher properties down the track with them under package and the off-set account. As mentioned already though, the off-set facility may not be required as it could be against PPOR or the like.
The DEF is a biggy if you change your plan of attack.


Regards
Steve
 
yikes ... 0.9% is a bit harsh. Any other catches / unusually large fees or penalties besides this one?

It's the same as the current advantage package, and I think comparable to most lenders.

There are only positives here, the rate is to attract new customers to the bank.

If you do repay the loan within the first 4 years and switch to another product, there is some discretion to refund the fee.

The summary is that you are getting an advantage package ( pro-pack ) with an increased discount for the first year.

The Heritage Basic product is off the market for the moment (unless you're an existing customer)

I thought it was only withdrawn from brokers ?
 
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I thought it was only withdrawn from brokers ?
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That's not what was told by them but willing to stand corrected.


As for the 0.90% being comparable to most lenders I'm sorry to say that this isn't close to the fact. On a $400k loan that's $3,600. most are around the $700 to $1k mark.
 
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Thanks Steve. Yes I do have an offset with my current lender and will stick to same rather than the dragon's. For the additional $395, my thinking was along the same lines as what you have mentioned.

The current plan is to hold onto this one for at least 5 years (it's newly built and hence pretty good dep for first 5 years) ... so the 0.9% might just be ok [& yes, I agree with you that it's not comparable to $700-$1k of the majors)

Btw, could you please clarify on "having to x-coll" further

having to x-coll

If I draw further on any increased equity, STG shouldn't require any further securities? or will they?
 
If you're careful about your structuring and LVRs with St George, you won't have to x-col. I made a point of asking this question to my BDM a few weeks ago. It used to be policy to x-col under the advantage package, but it can be avoided nowdays.
 
thanks ... it's good to know upfront & specially welcome if I can learn from the more experienced S'softers :)

Given that this will be my only borrowing with STG (of 400k); there's potential to stick with them for the next one. I'll keep the x-col factor on my radar for then.

thanks again
 
Hire a broker from the forum maybe to help you. wont cost you any more than going direct and it supports them and their time. from what I've seen these guys spend a bit of time on the forum helping people and in a large part for little reward. so using them for their skill and knowledge....

and if they screw up massively you can blast them in public and ruin their credibility.
 
Just got an email from Bill Zheng's Investors Direct saying they have a discounted variable product offering rates of 4.6% from a major bank. Would it be this product??
 
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