Hi All
Has anyone currently got this loan? What are the pros & cons? We’ve had a bad experience with our previous broker(read other thread by me)and I don’t trust what they say. We have the bank documents now and have 21 days to sign.
I am not sure if I should cut my loses and terminate the refinance or go ahead as we have already had valuations done etc. I estimate around $600-$800 if I cut. I would rather lose that than refinace with a sub standard loan.
Any brokers have a thought?
Thx
St george has some very good products,
However, I would require a lot more information in order to determine the appropriate lender/product for your particular situation, do you really need a LOC?Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
We have had a LOC for years with Citibank. Over the last year or so I have found their service to be sub standard. Hence the refinance. The broker we were going through only deals with St George(something i was not aware of when they recommended the Portfolio loan). How many products were we not told about!!
From what I have read the loan appears to be ok. My concern is if the fees etc are high compared to other lenders.My current situation is we have our PPR and two Inv properties with a third on the way soon.
Any more info is appreciated
Thx
Are you accessing the equity in all 3 properties?
What Interest rate have you been quoted?
What is your long-term plan, how many investment properties do you plan to acquire?If you require/need a LOC then you may want to look at the ANZ Breakfree package, the annual fees are slightly higher compared to St George, but they do offer a lower interest rate,
However, depending on a number of factors you may find that you do not need a LOC, there may be other products that will offer more long-term benefits.
Feel free to call or e-mail, If you prefer not to disclose this info on the forum.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
We will be accessing the equity to purchase more properties
From memory the rate is 6.47. The loan has sub accounts for each property(or i can have just one account for investment)
As standard the sub accounts are variable. My thought is to fix the investment sub acc. for 3-5 years. Not sure though? What do Brokers think these days about fixing?
I am not to sure how many properties i will get. My goal was 10. depends on market. soon i will diversify and use some of the equity for shares and managed funds.Thx
At 6.47% this sounds like the St George Professional Benefits Package, if your total borrowings are over $250K and depending on which State the security is in, you may find you are entitled to the St George discount rate of 6.37%
If you are refinancing debt on your PPR, then you should also consider an offset attached to this portion of the loan,
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
I think it is a professional package. Do you like the product? How does the offset on the PPR work? Obviously all our income will be put in sub acc 1(PPr)
Do you think the sub acc2 should be fixed or left variable?
ThxWilko, I think the Stg pro pack is a very good product, providing it suits your situation.
However, If you intend to use the offset facility, you may not require the LOC,Regarding your question fixed or variable rates? I’m sorry but as a Mortgage Broker I am not qualified to offer such advise, and be wary of any Mortgage Broker that does.
Ensure your One Lender Mortgage Broker structures this refinance correctly, or you may have severe problems in the future.
I strongly suggest you get on the Phone and talk to 2 or 3 competent Mortgage Brokers before you take any further action.Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
The St George Portfolio isn’t bad so long as you don’t change anything too often.
Cons
– All properties a cross-secured (i.e. one big loan with sub accounts secured by all properties).
– Break fees of $1,000 for the first 3 years.
– Fees if you add another sub-account. E.g purchasing another property would cost $100 (new sub-account) + $395 (increase) + $205 (val) = $700
– Additional monthly fees for each sub-account ($12 p/mth). I.e. 3 sub-account would cost $12 * 3 * 12 = $432 p.a.Pros
– Interest rate discount of 0.70% (if borrowing over $500k in NSW & ACT or $250k in other States).
– Very user friendlyIt sounds like other professional packages like ANZ/CBA/NAB might be better now and into the future.
Fixed rates might be ok but just realise that you’ll probably be financially worse off. It’s like paying insurance. See http://www.prosolution.com.au/articles/fixed.pdf
That’s my 2 cents!
Cheers
Stu
Thx all
If I was to decide to walk away from the loan, how do I go about paying for what has already been done ie loan application, valuations? do I just contact St George and say to bill me for services rendered?
How does it affect the Broker if I do this? Ie work they have already put in.
Thx
Wilko, As I mentioned before, Do you need a LOC??
If the answer is no, then forget about the Portfolio package,Consider this, ask your Broker to organise a St George Pro Pack with a split, P&I repayments on PPR Debt with an offset attached, and I.O repayments on the Investment portion, place the equity in the offset account attached to PPR loan (non deductible debt)
This will cost $13 per month with no annual fees, and up to 0.70% discount off the SVR for the life of the loan.
Your Mortgage Broker should be able to organise this under your current application without you incurring any additional cost.
Your Mortgage Broker is welcome to give me a call if he/she requires any Free advice/help in setting up this structure for you.
Regards
Steven
Mortgage Broker[email protected]
http://www.mobilemortgagemarket.com.au
Ph:0402483216
Ph:1800 820 500
VICTORIAPLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.
Hi
I’m currently refinancing with St G.
I was previously with NAB, who very kindly cross-secured all my properties and tied up my borrowing capacity [angry2]
With St G I’ve been able to refinance my properties so that they are all stand-alone [biggrin]
Banks are generally all the same (out to make money) and it’s just a matter of finding the one that suits you best.
I personnel would use an independent broker. A broker should present all the available options to you, recommend two or three depending on your situation and then let you make the decision (as you not he will know what you are ultimately trying to achieve).
It’s important not to focus on the initial costs of refinancing but on the final goal of what you are trying to achieve, some times you have to spend a little money to make money [grad]
I am happy with my decision to refinance to St G and use the LOC, but the decision is yours and if I were you I’d find another broker.
Oh just a quick one, St G will lend 80% on inner city units in WA and there aren’t many banks that do that (South Perth and Subiaco are classified as inner city with regard to units).
Originally posted by Stuart Wemyss:The St George Portfolio isn’t bad so long as you don’t change anything too often.
Cons
– All properties a cross-secured (i.e. one big loan with sub accounts secured by all properties).
– Break fees of $1,000 for the first 3 years.
– Fees if you add another sub-account. E.g purchasing another property would cost $100 (new sub-account) + $395 (increase) + $205 (val) = $700
– Additional monthly fees for each sub-account ($12 p/mth). I.e. 3 sub-account would cost $12 * 3 * 12 = $432 p.a.Pros
– Interest rate discount of 0.70% (if borrowing over $500k in NSW & ACT or $250k in other States).
– Very user friendlyIt sounds like other professional packages like ANZ/CBA/NAB might be better now and into the future.
Fixed rates might be ok but just realise that you’ll probably be financially worse off. It’s like paying insurance. See http://www.prosolution.com.au/articles/fixed.pdf
That’s my 2 cents!
Cheers
Stu
Stuart,
I’m refinancing with St George and one of the big plusses is that I’m uncrossing my properties, which should give me greater options in the future.
So far they seem to be offering an excellent package, I will let the forum know of my experience a few months down the track though.
Cheers,
WaySolid“Write the wrongs that are done to you in sand, but write the good things that happen to you on marble.” Arab proverb
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