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$4000 Cashback When Refinancing Your Mortgage (>$250k) Online with St. George

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$4000 Cashback When Refinancing Your Mortgage (>$250k) Online with St. George
Go to Deal
Viper8 on 14/11/2019 - 18:28 stgeorge.com.au (5549 clicks)
Last edited 15/11/2019 - 17:54 by 1 other user

Refinance cashback doubled from $2000 to $4000 for online applications.

Summary of deal:
"Get one $4,000 Refinance Cashback plus $2,000 cashback per additional property refinanced when you apply online by 31 January 2020 and settle by 31 March 2020. Available on Basic Home Loans and Advantage Package loans ($395 package fee, $0 fee for Basic home loan). Excludes Owner Occupier loans with interest only repayments and refinances from within Westpac Group. Min. loan size $250k per property."

I would like to make it clear that the in order to be eligible for the additional $2000 on top of the original $2000, the application must be online (not via broker or in-store).
The rebate is paid 60 days after settlement, with no clawback.

For additional info, please see "What else do I need to know?" and "Frequently Asked Question." below:
https://www.stgeorge.com.au/personal/home-loans/manage/refin…

I was going to take the $2000 standard St George refinance cashback in addition to cashback offered from a broker over a 24 month period (whom may go bankrupt or not pay-up), until I saw this updated offer yesterday. I canceled my application with the broker and have had my application online with St George confirmed as eligible for the $4000 rebate.

Also of mention: the lending Manager assigned to me is asking for a better rate than the default 3.44% (given you apply online there is no way to negotiate during your initial application). Apparently 3.1X% should be achievable on the Package.

Enjoy!

Update: I've been given 3.04% with ~70% LVR on ~$300k loan (Package).

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closed Comments

        • Viper8 on 14/11/2019 - 23:39

          Free $15k rewards CC with bulk points, travel insurance etc.

          Redraw is not exactly the same as some of your money will be in a transaction account, which is not offsetting the mortgage. If you have big figures coming in and out this could amount to a significant sum which isn't offsetting.
          Also you have to manually move money back and forth rather than set and forget.
          For some it makes sense to go the slightly lower rate, but for most the offset is far more important.

          Agreed. All about your personal circumstances. Best thing is to open a Spreadsheet and start modelling it out over various time-frames and see which strategy put you on top for your time frame.

          • ely on 14/11/2019 - 23:53
            +2

            @Viper8: Meh, better credit card deals elsewhere, and sign up bonuses dwarf income from expenditure (unless you're running a business with decent expenses through them) so the provision of a card with a mortgage is of negative value in that it impacts your ability to get other cards (neutral value if you can just refuse it).

            You're not thinking about redraw right; see what I wrote in the comments above. I have next to nothing in a transaction account, all income goes to the mortgage, all transactions go on credit cards (good point earning ones, which get traded often for sign up bonuses), and I redraw to pay the credit card.

            For most redraw vs offset would make no difference in terms of interest if they do it right. For me this is how I did it anyway even without a mortgage (why lose out on interest and points by spending cash when you could spend it on CC for no cost anyway?) and so no problem, but I suspect many (including you, apparently) don't think to do it this way and so think offset is saving them interest. And given that offset generally comes with higher fees or worse rates, it generally ends up costing people money.

            The only legitimate reason to need an offset account that I've seen is for taxation reasons if you're planning on turning it in to an investment property later. Maybe there are others, but you haven't provided one.

          • dasher86 on 15/11/2019 - 07:53

            @Viper8: I thought there was $395 package fee for the card.

          • Daddyhere on 15/11/2019 - 13:13

            @Viper8:

            Block-quote Free $15k rewards CC with bulk points, travel insurance etc

            Where is the $15k? I cant find it anywhere

        • ely on 15/11/2019 - 09:22

          Would be curious what the negative voter objected to.

        • ely on 15/11/2019 - 12:07

          Oh, "tier 1 CC" is decent credit card? That's not a pro, that's a con. You'd be better churning cards, collecting sign up bonuses, saving the package fee + worse rate, and using redraw.

      • Enzo01 on 15/11/2019 - 00:27

        Macquarie home loans is competitive.

        3.09% with the offset account.

        Fees = $248 per year, but they waive all CC fees.

  • jobargain on 14/11/2019 - 21:38

    Does anyone know what are the fees associated with setting up the Basic home loan option?

    • ely on 14/11/2019 - 22:06
      +1

      And a $0 establishment fee if you borrow more than $150k3 when making Principal & Interest repayments (see fees section).

      Other fees also may apply, but I can't find them. Commonly there are some legal fees (a few hundred) and a valuation fee (often waived, may be 200-300 also). There will also be fees for exiting your existing lender, typically a "discharge fee" of ~300, and possibly other break costs if you have a fixed term loan (and these fees can vary enormously depending on your outstanding balance, the rate, and time left on the loan).

    • ely on 15/11/2019 - 09:22

      Added to that, refinancing will have mortgage deregistration and registration fees, depending on state, ~120 each in VIC, probably similar elsewhere.

  • [Deactivated] on 14/11/2019 - 21:39

    On the offer page, it is only saying "Refinance and you could get $2,000 cashback!" rather than $4,000. Is anyone else experiencing this?

    • Viper8 on 14/11/2019 - 22:17

      Some of the pages haven't been updated. Call up and they confirm the offer. Again they confirm after submission.

  • nadan on 14/11/2019 - 21:40
    +1

    Not sure about St George specifically, but given they are part of Westpac, and if their service is like Westpac, then it is the worst and I would avoid to have such long term commitment with them.

    • gregorian on 14/11/2019 - 21:45
      +1

      St George is actually worse than Westpac. Their contact centre have limited information and ability to actually help a customer.

    • Viper8 on 14/11/2019 - 22:18

      I didn't realise 60 days was such a long term commitment?

  • fozzie on 14/11/2019 - 22:02
    +3

    Yes, you made my day! Voted hot, I was already going with bundlesave and the St George, but now the deal is even sweeter.

    Thanks op.

  • RichieVn on 14/11/2019 - 22:16

    Anyone know what current variable rate is with NAB First home - (PPOR - interest and principle)?

    • chmod on 14/11/2019 - 23:08

      Interested to know as well…

    • whoopdeedoo on 15/11/2019 - 10:20

      AROUND 3.2 - 3.5 depending on loan amount and LVR

      • RichieVn on 15/11/2019 - 11:08

        yeap sounds about right thanks

  • lavalynd on 14/11/2019 - 22:28

    Can you refinance again after getting 4K? Or is it locked to 1 or 2 years?

    • Viper8 on 14/11/2019 - 22:32

      You can take the money and walk after 60 days. No clawback.

      • Len -Bundle Loans on 14/11/2019 - 23:15

        FYI the new bank will want to see at least 6 months of loan history before they approve the refinance.

        • Viper8 on 14/11/2019 - 23:42

          In terms of explaining the recent switch: Tell them you're unhappy with the previous bank because of reasons and want to switch purely for the sake of switching.
          In terms of obtaining the required amount of history, you can still get your statements from your original bank that you left. They have to keep everything on file for minimum of 7 years

        • whoopdeedoo on 15/11/2019 - 10:20

          not always.

  • SuperSonic on 14/11/2019 - 23:37

    does the basic loan provide a redraw facility without any extra charge ?

  • orin on 14/11/2019 - 23:55

    Does it allow me to refinance a higher amount? I.e. original mortgage amount 200k, I refinance at 300k and draw out the 100k?

    Is the bonus still applicable in this instance?

    • Viper8 on 14/11/2019 - 23:56

      You can always do that, assuming the bank is happy with your ability to meet the higher minimum repayments and the higher LVR.

  • Block on 15/11/2019 - 06:28

    Thanks Op.
    So for a $500k OO loan the extra per month for the Standard Variable on the Advantage Pack is $123 or $1,476 per year over the basic variable.
    For an extra $395 to pay more interest why would you choose this option?
    It has offset but the no yearly fee Basic variable has free online redraw?
    Any ideas?

    • blergmonkeys on 15/11/2019 - 06:56
      +1

      Why go advantage? Just get the basic, get the money, wait 60 days and switch to someone else.

      • fozzie on 15/11/2019 - 07:51
        +1

        You should wait 6 months before refinancing as new lender needs to see 6 months loan history.

    • JohnHowardsEyebrows on 15/11/2019 - 06:57
      +1

      The rate that they advertise for package loans is rarely what they offer. More likely you'll be paying 10 basis points max more than the basic home loan rate.

    • Viper8 on 15/11/2019 - 10:27
      +2
      1. My mortgage is smaller
      2. I'm offsetting over 50% of my mortgage
      3. I'm getting a lower rate than advertised
  • watertight on 15/11/2019 - 07:16

    I’m currently on a good rate with UBank. Basic with redraw 2.84%. I’m coming into a large chunk of money which will offset my loan completely, so maybe I should switch for the 4K bonus. The Higher Interest rate is no concern as I will just offset it 100%%.

    • stirlo on 15/11/2019 - 08:04

      Similar here, If you find out what the costs are to leave ubank and join westpac, please let me know. I imagine it would be a fair bit less than $4k so might be worth getting some bonus cash…

      • Viper8 on 15/11/2019 - 10:28

        Just under $1k.

  • Waikipedia on 15/11/2019 - 08:08

    I've just gone through the online application and at the end of the application I only see $2000 cashback?

    • Waikipedia on 15/11/2019 - 09:10

      Just called up cust service, they said that the submission page hasn't been updated to reflect the addition $2000 from online application.

      • Viper8 on 15/11/2019 - 10:28

        What he said.

  • ddhar on 15/11/2019 - 08:39

    Basic question: I have about 100k owing on my ppor loan. If I were to refinance and apply for a 200k-250k loan (and pay down the balance to 100k post-settlement), do I still qualify for the cashback?

    • Bullion78 on 15/11/2019 - 11:34

      I have the identical situation. Would love to know.

  • tnarg on 15/11/2019 - 09:33
    +4

    I had mentioned in a previous comment above that I have submitted for the loan. I will break down the fees and show my scenario to help others make an informed decision on what will be best for them.

    • I have 35% equity on the house (so I won't have to pay LMI when I switch) - if you have less than 20% it is much more expensive to change banks

    • I am breaking a fixed term with CBA (1 yr left of 2)(3.75% fixed and 3.33% variable) - cost $3400 break fee( interest lost to CBA), $350 bank fee, $190 government fee = Total: $3940. If i only had a variable rate then i wouldn't cop the $3400 (But that is the game you play with fixing and rates going up or down - I have always had a split between Var and fix)

    -St George has offered the following: $4K cash bonus, 2.89% fixed and 3.03% on vairable. I am taking the advantage packege (fee $395 - like most banks - I have negoited fee free for a year in the past with CBA). I will also choose there highest points earning CC Card.

    -Yes i play the points game with CC and will always look to sigup to a new card every year with a point bonus

    -I always split my loan personally. I do part fixed just to lock in a rate so i know that i am paying down the loan and variable so i can feed all money coming in directly into my offset. I usally have one variable loan slip into several accounts(some to put in for the kids savings and one my salary to go into - but they all sit against the home loan to reduce the compound interest

    -So in Summary the Cashback offests the break free. Additonaly I'll be saving closer to 1% for the year (maybe roughly a saving of $3500, for the year).

    In the past I have held CBA and Ubank and have switched for cash bonuses and the moved back again - CBA-Ubank-CBA-St George (this is the firt time to break on fixed).

    Notes:
    Cashbacks are only available when switching banks there may be some exceptions to the rule (not partner banks e.g. NAB-Ubank | CBA-Bankwest | Westpac-St George)
    If you have less than 20% expect to pay an additional $6k - $10k for LMI if you move
    I didn't like Ubank as there tech is crap and it took several days to move funds between accounts
    CBA Tech is awesome, but expect to pay more for this
    The more i can do online myself with the best rate and higest flexability is where we all want to get to.
    Rates and cashback are subject to loan value you are refinancing

    Good luck and happy hunting

    • fozzie on 15/11/2019 - 12:59

      How are you getting 3.03 on variable offset? The mortgage broker had managed the 3.12% with nearly 40% equity, Even with 40 equity the rate would be still 3.09 for an offset.
      Thanks

      • fozzie on 15/11/2019 - 16:14

        All good, I just did the preapplication and the rate for offset is 3.02 at the moment (as I am applying for 59% mortgage value). I already uploaded all the documents required, I just hope it all goes well and quickly as I am paying Cua 3.39

        • tnarg on 15/11/2019 - 21:53

          Good job, now I will ask for 3.02. Cheers

    • dcep on 15/11/2019 - 16:42

      cashback are subject to loan value you are refinancing

      what does that mean?
      I thought as long as >250k , will get the full $4k cashback ?

      • tnarg on 15/11/2019 - 21:52

        The last part was just general. Not specific to this loan when borrowing more than 250k

    • Hunter14 on 23/12/2019 - 17:40

      Just curious to know when you churn between these banks, did you keep your first bank account or just created a new bank account every time to the bank you're switching to?

  • donbot on 15/11/2019 - 09:49

    Can anyone comment on how much St George put you through the ringer in terms of expense validation as part of this application process?

    Eg. If I show my current offset account which shows all income coming in, and payments out (current mortgage/credit card payments/transfer to personal EFT accounts), is that sufficient?

    We more than satisfy serviceability on the loan we'd be refinancing, but not sure I can be bothered to have everything pulled - personal eft accounts, credit card statements, etc.

    • tnarg on 15/11/2019 - 09:57
      • 2 payslips
      • 6 months statements for loan repayments
      • 3 months statements for all Credit Cards
      • ID - licence or passport
      • Fill in a monthly expense excel that they send you
  • kidicarus on 15/11/2019 - 09:51
    +1

    So this "deal" is cutting out the middle man in some cases, ie the broker. Effectively st george is giving the customer the brokers commission? Interested to hear what brokers have to say about this, especially if this becomes the norm and all banks start offering..

    • Viper8 on 15/11/2019 - 10:30

      Yes. Great for consumers that can look after themselves.

  • VOHAUL on 15/11/2019 - 10:38

    What are St. George like with self-employed people? I have a variable home loan with ANZ at 3.99% (ouch) but my income is patchy at best. This rate would save me thousands per year even without the $4000 bonus, but I don't like my chances of being accepted :/ Thanks for the post!

  • ayoole on 15/11/2019 - 11:14

    This is intriguing. I bank with St George, but have only just organised a mortgage with BankWest through a broker. I've just made the first payment this week!

    I would have preferred to finance through St George in the first place but the broker encouraged me to use BankWest. Interest rate is 3.16% and I paid 20% deposit so did not require mortgage insurance.

    Is it viable for me to change so soon after getting the Bankwest loan?

    • Viper8 on 15/11/2019 - 11:17
      +1

      Brokers will often force you to go with whomever is paying them the biggest commission. That's why I'm not a fan of them unless they share some of that commission. In this case St George is bypassing the broker and giving that commission straight to you.

      It probably is doable, though I cannot speak to the impacts on your credit rating.

      • [Deactivated] on 15/11/2019 - 21:27

        You're spot on. I've never met a broker who could offer me the sharpest rate. Most give me some BS about approval rate and speed.

        For a simple full time employee with a P&I loan and 20%+ equity I don't see what value a broker could possibly offer.

    • tradewind on 30/11/2019 - 15:13

      I'm in the exact same situation except I haven't even made a payment to Bankwest yet (I'm on 3.13%). Have applied and gone thru the phone appointment with St. George and all looks good so far. They've offered 3.14 and 2.99 for the Advantage and Basic respectively.

  • Duram on 15/11/2019 - 11:25

    3.44 for the bin. Might be worth it to churn get the 4K and then churn away.

    • Viper8 on 15/11/2019 - 11:35

      Does anyone ever just take the advertised rate?

      • spedohero on 15/11/2019 - 11:37

        i am still on fixed rate 3.98%. A year more to go. Break cost is around 3.6k including discharge fee. Should i jump taking the $4k and negotiate better rate?

        • Viper8 on 15/11/2019 - 12:01
          +1

          Personally I would break if your loan isn't tiny (must be >$250k to be eligible for this offer anyway).
          Yes you'll use all of that $4k rebate on the break and refinance costs, but then you'll save a year of interest at ~0.9% lower rate. On a $350k mortgage that would be ~$3k benefit.
          Alternatively you could take the gamble that this bonus rebate will exist in a years time and take it, having paid the extra ~$3k in interest with your current rate.
          Both options offer similar value, though option 2 is making an assumption whereas option 1 is guaranteed.

          • JohnHowardsEyebrows on 15/11/2019 - 12:07

            @Viper8: Any idea if they'd do a refinance after 3 months?

          • spedohero on 15/11/2019 - 13:15

            @Viper8: @viper, would you be able to advise is it common to request for cashback from a broker? I had an open application with a broker asking me to stay with the new lender for 2 years otherwise there will be a claim back of any commission he had to pay back if i jump to new lender within 2 years.

            Thanks.

            • Viper8 on 15/11/2019 - 13:35

              @spedohero: All I know is there are a few online brokers that base their entire business model on cashback. This however is an exception, not the norm. Most brokers take the whole lot.

              I've been told it's 100% clawback in the first 1 year, 50% clawback in the 2nd year, 0% thereafter.

    • alexthebargainman on 15/11/2019 - 12:30

      My application automatically came back with 3.04% thats with the full package. This was due to 55% borrowing.

  • LANCASHIRELASS on 15/11/2019 - 12:07

    This sounds great and was just shopping around for new deals. I just been on the phone to a very helpful guy. My home loan is WITH CUA at 3.39 and St George's will do 3.09% variable. Fees $395 per year and government fees approx $170. You can move anytime on the variable (straight after the $4k pay out if you like) you can have as many offset accounts as you like.

    Does anybody know is it better to over pay on you home loan at 25 years or reduce the number of years say from 25 to 18 years.

    • JohnHowardsEyebrows on 15/11/2019 - 12:20

      If you plan on using it as an investment, and have an offset, as long as possible (so you can use the money for personal things if need be, and not lose deductibility).
      Even without that, overpaying on a longer period gives you more breathing space if you suffer any setbacks (unemployment or the like).

    • Viper8 on 15/11/2019 - 12:36
      +1

      I always set it at 30 years and then pay it back at double+ the amount they request. This way I still pay it down early, but I also have the flexibility to cut my repayments in half should I be out of work for an extended period.

      • LANCASHIRELASS on 15/11/2019 - 13:00

        Thankyou. It just feels never to be going away lol. I do over pay approx half my monthly loan on top

    • fozzie on 15/11/2019 - 23:09

      I also have Cua and I am on 3.39.
      I put application in online and new offset account will be 3.02 (borrowing 59% value of the property).
      I am sick of overpaying Cua who put their interest rates up 2 months after I signed up. And then only pass a percentage of discount and is not willing to offer new rates if you tell them you want to move.

      • silkysmooth on 19/11/2019 - 20:15
        +1

        They did it to me , but for new customer they make a new home loan product at better rate and won’t offer to me

  • dcep on 15/11/2019 - 14:33

    So, everyone is getting 3.0X% ?

    • brettmo on 15/11/2019 - 14:55

      I got 2.94% for the basic loan package.
      $250k loan on a $450k house.

      • Kolagenplus on 15/11/2019 - 14:56

        fixed or variable?

        • LANCASHIRELASS on 15/11/2019 - 15:03
          +1

          I got that for Fixed, 3.09 for variable

          • fozzie on 15/11/2019 - 16:16

            @LANCASHIRELASS: It depends on how much of the value you are borrowing. If you borrow 0.6 or less you get the cheapest rates.

        • brettmo on 15/11/2019 - 17:00
          +1

          Variable.

      • Korban Dallas on 30/11/2019 - 08:07

        Yeah that was the default what I got. No frills no fees but with no offset. Exit fees with Suncorpse are $350 and $192

  • MauTauAja on 15/11/2019 - 14:34

    Cant apply, Perth housing market very bad at the moment and most of us owed more than it worth

    • fozzie on 15/11/2019 - 17:25

      That’s sad, I hope there will be a change soon for you.

    • nightqueen on 21/11/2019 - 17:14

      Sorry to hear about the negative equity. Bring on the next mining boom

  • weirdieweirdo on 15/11/2019 - 14:46

    My full mortgage amount is 100% offsetted, so interest rate doesn't bother me. Does this mean I will get the $4000 cashback from switching without any drawback at all?

    • JohnHowardsEyebrows on 15/11/2019 - 15:25

      Knock off up to a grand for the cost of switching, plus the $400 package fee, I guess.

      • nightqueen on 21/11/2019 - 18:56

        no package fee with the basic home loan, should make 3k tax free after the cost of switching

  • Viper8 on 15/11/2019 - 17:55
    +2

    FYI I've been given 3.04% with ~70% LVR on ~$300k loan (Package).

    • organamisms on 23/11/2019 - 16:23

      Was this variable or fixed under the package?

      • Viper8 on 23/11/2019 - 20:20

        Variable.
        Advertised fixed rates are all in the 2's.

  • Spidi1 on 15/11/2019 - 18:14
    +1

    My home loan is with st George
    140k left to go.
    Standard variable 3.2%
    Would I be able to get better deal with some other bank?
    Any suggestions please?
    Trying to pay it off in next 3 years

    • Viper8 on 15/11/2019 - 18:58
      +1

      Sounds like you're better off chasing cash rebates given you have a small loan with a very short life at an already competitive rate (vs. the majors).
      If you had a large loan with a decade+ remaining then sure, fight for every 1/100th of a percent. IMO of course.

  • endolphin on 15/11/2019 - 19:46

    Anyone been able to negotiate the first year package fee to be waived as well?

    • [Deactivated] on 16/11/2019 - 13:15

      Interested to know as well

    • yellowfever on 21/11/2019 - 00:18

      success anyone..?

      • SomeoneFromSomewhere on 22/11/2019 - 11:26
        +1

        nope. saying that we offer extra 2k which covers almost 7 years of annual fee

      • alexthebargainman on 22/11/2019 - 15:24

        nope, no luck here in NSW. got the rate to 3.04 for the variable with offset account though.

  • makeahit on 15/11/2019 - 20:04

    Has anyone worked out the total cost of refinancing? I only found there is no establishment fee and no annual fee on Basic Home Loan. Discharge fee is $350.
    But, what about other fees - i.e settlement fee, legal fee, valuation fee?

    • Viper8 on 15/11/2019 - 20:11

      ~$900 total on Package. Depends on state.

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