Im am looking at transferring my two loans (I have P&I for my PPoR and my IP) to the BanskSA Portfolio loan as I am looking at purchasing another 2 IPs over the next year or so and also want to try and pay off my PPoR as quick as possible. However I have noticed it does have a very high interest rate (currently 7.28) and set up/monthly ongoing fees. I currently have about $620000 in cash and equity and do like the structure of the loan set up (with the LOC and sub-loan accounts for IPs). Any advice on whether this loan is a good choice or if there are better ones out there would be greatly appreciated?
ThanksI have several accounts with Bank SA, LOCs etc, if your borrowings are enough you can ask for a pro pack, cost is 350 p/a, this gives you .6% I think off you loans and no monthley fees
MD70
Bank SA is part of the Dragon empire and as a consequence owned by Westpac (Or Wesuck in the Broking world).
They dont want to lend money because they have got any and seem to have a higher cost of funds than most and this is reflected in the higher rate of interest quoted throughout the Group lead by Westpac or have already stated that they intend to increase home loan rates at a rate higher than future official cash rate increases from the Reserve Bank.
You could certainly do better at a cheaper rate.Richard Taylor | Australia's leading private lender
Not a good idea in my opinion.
Why not keep them on a standard IO loan, separately, and set up the portfolio on any of the equity available.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
MD70 Are you talking fixed rates? I have just set up some accounts with st george aka bank SA, my broker said I would get the best deals there I didnt beleive him and tried to ge a better deal myself . I was stunned by how much better the deal was. The ANZ didnt want to lend money and their rates were high. Bank West wanted to lend money but their rates were a bit high, and fees were horrendus like many many thousands. St george were very obliging and easy to deal with even came to my place so I didnt have to go into the branch, only one fee $395, paid yearly No other fees. With this fee I get 0.6% discount off the standard variable rate which means my rate is 6.3% . I also get free cheque book, free debit cards, free visa credit cards with rewards programme.
The portfolio product can be a very good tool for wealth creation when used correctly, ANZ also have a product that is competitive- the benefit of the ANZ product is the offset account. STG doesn't allow for an offset, this can become restrictive over the long term. Consider when your PPOR is paid down.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
