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St George Owner Occupied Fixed 1.89%/1.94% 4 Years 1.99%/2.04% 1-3 Years for 60%/80% LVR + up to $4000 Broker Gift Card

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St George / Bank of Melbourne BOM rate reduction:
1.89% (CPR 3.90%) fixed 4 years owner occ P&I.
1.99% (CPR 3.68%) fixed 1-3 years owner occ P&I.

<60% LVR fixed owner occupied (80lvr +0.05%)

PLUS $4,000 St George bank rebate + $2,000 per additional property (>$250k)
PLUS up to $4,000 Broker gift card
= up to $8,000 rebates for one property. $10,000+ for 2 properties

$1 LMI 85%LVR for first home borrowers (<$850k)
Further reductions for loans over $500k+

St George Basic Product

No annual fees, free online redraw, no offset.
2.54% (CPR 2.56%) owner occ variable P&I (further -0.05% for <60% LVR = 2.49%)
2.99% (CPR 3.01%) investor variable P&I (further -0.05% for <60% LVR = 2.94%)

St George Package

$395 annual fees, offset account, free redraw, premium credit card.
Rates from below (variable rates subject to approval)

<80lvr package rates (further -0.05 for 60lvr)

2.64% (CPR 3.89%) fixed 2-3 years investor P&I.
2.64% (CPR 3.53%) owner occ variable P&I. (further -0.05% for <60% LVR)
3.04% (CPR 4.08%) investor variable P&I (+0.2% for investor interest only) (further -0.05% for <60% LVR)

Regarding Comparison Rates (CPR):

There is a common misconception that lower comparison rates CPR will save you more money and better than a higher CPR - not necessarily and can actually be the opposite, here's why:
- "Comparison rates" were invented by the government to reflect lender fees over the life of the loan.
- It is based on a loan size of $150k over 25 years which is irrelevant for most customers. The CPR is actually misleading and can cost you more money.
- If your loan is larger than $150k, then it is better to pick a lender with a lower ACTUAL rate (even if the CPR is higher) as it will save you more interest each year. Of course take into account all the fees eg $395 annual fees, which may be less significant for a larger loan size.
For larger loans, a lower ACTUAL rate (with a higher CPR) is often better than a higher actual rate (with a lower CPR).
- Hence CPR can be misleading and a lower CPR can be more expensive than one with a higher CPR but has a lower ACTUAL rate. The correct approach is to look at the ACTUAL rate plus all fees involved, rather than the CPR.

The CPR may be high for a few reasons:
1. It may incl the $395 annual fee x 25 years = $9,875. This extremely high amount is included in the calc of the CPR for a relatively low $150k loan hence greatly inflates the CPR of such a small loan to make the rate appear much higher than it actually is. It is actually not a huge amount over 25 years relatively speaking (equiv to 0.1% rate difference on a $395k loan size)
2. The fixed CPR is even higher due to after fixed period, it defaults to a higher rate with no discount. In reality, we can always negotiate a competitive discount on variable after expiry of fixed. Also customers refinance after 2-3 years and never stay for 30 years at the same bank.
3. Smaller online lenders have low CPR but often has up $2,000 in application, valuation, legal, discharge fees (which is negligible over 25 years hence the low CPR, but you get hit at every transaction/refinance. The smaller lenders have a lower CPR as they have no annual fee, but often a large upfront/discharge fee. The CPR is a very misleading number and small lenders using a low CPR look better than larger banks even though it may be the opposite.

PLUS up to $4000 Broker gift card for purchase or refinance (available via broker only, not via the bank)

In ADDITION to bank rebates, we have up to $4000 gift card (based on net of offset ie balance owing) for ANY bank or product.

Rebate paid as either VISA gift card option or our standard up to 0.4% rebate. Paid 50/50 at 2 and 24 months after settlement.

Len
Bundle Property Home Loans
Bundleproperty.Com.Au
T: (02) 9698 7186
M: 0422354868
E: [email protected]
ACL 445947

Related Stores

St.George Bank
St.George Bank
Bundle Property Home Loans
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closed Comments

  • +1

    <60% LVR fixed owner occupied (80lvr +0.05%)

    1.89% (CPR 3.90%) fixed 4 years owner occ P&I.
    1.99% (CPR 3.95%) fixed 1-3 years owner occ P&I.

    Nice offer OP. So if I am fixing OO P&I for 1 year I will get below rates:

    80% LVR: 2.04%
    60% LVR: 1.99%

    Website shows different rates for fixed loan so want to clarify.

    St. George interest rates

    • Yes correct. Not yet updated on website but it will be shortly. Same rate as Bank of Melbourne deal (same bank as St George)

  • +1

    St George app and netbank are way better than ANZ. If you are ANZ customer , it’s good opportunity.

  • Does the $4,000 St George bank rebate include new purchases too or is it just for refinances?

    • Just refinances. You get our broker rebate up to $4k for purchases.

  • The St George website is atrocious. Very difficult finding out further information.

  • What are the rates for investment loans? Looking to switch all my loans over

  • <60% LVR on >500k OO property

    Homestar is giving less than 2% variable rate .

    Why moved i move to this bank?

    • Are you asking the broker to convince you to move banks when you have a better deal elsewhere?

      • may be they are better than homestar finance? i do not know much about homestar.

    • Online credit providers like Homestar vs St George/ Bank of Melbourne is not a similar comparison. Some customers value ease of use of mobile apps, credit cards, branches, customer service etc.

  • Further reductions for loans over $500k+

    OP, further reductions in what? Interest rate, LMI costs, or something else?

    • +1

      Further rate reduction discretion

  • how about if I just want to fix one year? (saying $500k loan)

    is it $4000 cashbank from bank + 750 visa card?

    • +1

      yes

  • -1

    Do people not just look straight at the comparison rate since that's what you're paying in the end? CR at 3.95% is pretty horrendous rate..even if you get 4k rebate you would not want to stay any longer than the fixed rate length.

    • +1

      no in fact you don't need to look CR rate as long as banks offer cashback

      e.g. what you need to pay for each refinance is about $700-800 each time (including discharge 350+ other fee , e.g. title search)

      annual fee is not included

      The formular for saving is total home loan (saying $500k) * saving of interest rate (saying 0.2%) + bank rebate (4000)+ borker rebate if any - refinance cost (700-800)= 4200 to 4300

      • Well it does matter because CR takes into account fees which you are paying..also you're assuming you're getting a better interest rate. I get a slightly better rate with ubank and they havent reduced their rate yet (if they do). So really, for me it would be $4k - refinance (800-1500 at a guess) - worse interest rate (lets say worth $400 a year). I am actually still semi keen for the basic product but for those looking at the package ones I think you would be crazy.

        • I think refinance only costs 700 to 800?

    • Please refer to our comment below re CR

  • Curious what is CPR? The rates people seem to quote is 2.64% on an 80% LVR with the st george package loan (the one with offset) which seem slower?

    Also am i reading this wrong? In addition to the standard $4,000 rebate from St George (refinance $2k + 1 property of $2k) the broker is also offering an additional rebate via Visa card? I've heard of brokers giving rebates before (i.e. rebating their payments) but if so what do the brokers get out of this (if you don't mind me asking) ?

    @Len (poster) - do you handle financing from the point of view of structuring best for potential future property investing (given you come from property investor background)?

    • Yes we give up to $4000 rebate on top of $4000 bank rebate = up to $8000

      We always structure that is the best for costs, tax, flexibility.

      Please see our CPR comment in updated post.

      • Thank you. What is the likely turn around of a refinance? It's already the 19th, are we better off without the stress of waiting to see if St George comes back with a refinance $4k beyond 31/11/20 deadline? As 10 days seems abit stressful to start the process now if we wish.

  • Len - what are the implications with LMI as far as being in an approved occupation e.g. chartered accountant. If spouse is also included is their a pooled income they look at at a minimum - i believe St George gives LMI concessions?

    However I presume you couldn't access the 2.64% on the 80% LVR by doing say 85%-90% LVR with the LMI waiver (They would increase your rate offered form the 2.64% presumably?? Or can you negotiate this)

    • Please contact me for your exact situation.
      We have lenders that do 90%LVR no LMI for accountants, no income requirement.

      • No income requirement? Can you explain? Happy to contact you - what's best? have an email and/or mobile?

        Also are you fully licensed, insured, and what are your relevant privacy procedures/policies like? just standard stuff we'd like to check before handing any personals info over to someone, particularly as we'd be interstate and not in person.

        • Sent you a DM thanks

  • -3

    Comparison rate of 3.90% tell 'em they're dreaming!

    • +1

      Regarding Comparison Rates (CPR):
      There is a common misconception that lower comparison rates CPR will save you more money and better than a higher CPR - not necessarily and can actually be the opposite, here's why:
      - "Comparison rates" were invented by the government to reflect lender fees over the life of the loan.
      - It is based on a loan size of $150k over 25 years which is irrelevant for most customers. The CPR is actually misleading and can cost you more money.
      - If your loan is larger than $150k, then it is better to pick a lender with a lower ACTUAL rate (even if the CPR is higher) as it will save you more interest each year. Of course take into account all the fees eg $395 annual fees, which may be less significant for a larger loan size.
      For larger loans, a lower ACTUAL rate (with a higher CPR) is often better than a higher actual rate (with a lower CPR).
      - Hence CPR can be misleading and a lower CPR can be more expensive than one with a higher CPR but has a lower ACTUAL rate. The correct approach is to look at the ACTUAL rate plus all fees involved, rather than the CPR.

      The CPR for high for a few reasons:
      1. It may incl the $395 annual fee x 25 years = $9,875. This extremely high amount is included in the calc of the CPR for a relatively low $150k loan hence greatly inflates the CPR of such a small loan to make the rate appear much higher than it actually is. It is actually not a huge amount over 25 years relatively speaking (equiv to 0.1% rate difference on a $395k loan size)
      2. The fixed CPR is even higher due to after fixed period, it defaults to a higher rate with no discount. In reality, we can always negotiate a competitive discount on variable after expiry of fixed. Also customers refinance after 2-3 years and never stay for 30 years at the same bank.
      3. Smaller online lenders have low CPR but often has up $2,000 in application, valuation, legal, discharge fees (which is negligible over 25 years hence the low CPR, but you get hit at every transaction/refinance. The smaller lenders have a lower CPR as they have no annual fee, but often a large upfront/discharge fee. The CPR is a very misleading number and small lenders using a low CPR look better than larger banks even though it may be the opposite.

      • -3

        Thanks Len. But as a person without a disgustingly high mortgage and a bank that was at 2.60% both rate and comparison prior to the RBA announcement, all i can say is people need to shop around to find what suits them best.

  • You need to look at the actual application, valuation, discharge fees. These can all be very high yet show a low CPR.

  • OP, I contacted St George today and they said the 4 year fixed rate to be released on Monday for owner-occupier will be 1.99%.

    Are you doing it cheaper than them at 1.89%

    • +1

      yes 1.89% for 60%LVR. 1.94% for 80%LVR.

      • Thanks

  • Len, I have not had a mortgage for 15 years so need some advice.

    Buying a home to live in (LVR 55-60).

    Plan to take a 30 year loan but sell house after 10 years.

    Would like to discharge mortgage after 10 years without penalty.

    Would like to pay extra every year (monthly) and also be able to withdraw money if necessary (maybe if we have a new pandemic Covid 20)…

    Would like to have fixed interest for 4-5 years.

    Options?

  • Please email us [email protected] and will send you options for your situation thanks.

  • Hi OP, can I get offset account with fixed? Or is that only for variable?

    Any application fee?

    • Can split with variable which has offset. No application fees, only $100 settlement fee charged by StG

      • I sent you an email 6 nov but no reply

        • Thanks we replied asking for more info and still waiting on those responses from you.

  • Do you charge clawback fee? Please make that clear.

    • no clawback fee. Our rebate requires 24 months stay

  • took me over 3 months for loan settlement earlier with them & still following up on the promised rebate. Extremely slow/delayed response everytime.

    • Hi, thanks we got your follow up email 20 min ago. We sent you the rebate previously which showed the screenshot of the amount the bank paid us, but you said the bank amount was not correct by $36k net loan size. We advised we have raised an investigation on this matter with the bank and will get back to you asap, but the bank takes time to investigate. We will see if we can honour the original amount for you regardless. Please just give us a call next time if urgent.

    • We are happy to honour the full amount for you and sent you about 3 hours ago. Apologies for the delay and thanks for your patience and understanding as the lenders took over 2 months to assess your deal earlier in the year.

      • Thanks for honoring the full amount.

  • Hi OP,

    I was with St.George but refinanced away to NAB in June this year. Can I come back to St.George and take advantage of this offer?

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