St George $4000 Refinance Rebate + $2000 Per Extra Property (> $250K)

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St George $4000 Refinance Rebate + $2000 Per Extra Property (> $250K)

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carva848 on 20/09/2020 - 03:30 stgeorge.com.au (3345 clicks)
Last edited 22/01/2021 - 14:18 by 2 other users

St George $4000 refinance rebate + $2000 per extra property (> $250K)

Apply by 31 January 2021 and settled by 31 March 2021.

St George Basic Product
No annual fees, free online redraw, no offset.
2.64% (CPR 2.66%) owner occ variable P&I (further -0.05% for <60% LVR = 2.59%)
3.09% (CPR 3.11%) investor variable P&I (further -0.05% for <60% LVR = 3.04%)

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

2.24% (CPR 3.45%) fixed 1-3 years owner occ P&I. (further -0.05% for <60% LVR = 2.19%)
2.64% (CPR 3.99%) fixed 2-3 years investor P&I. (further -0.05% for <60% LVR = 2.59%)
from 2.74% (CPR 3.67%) owner occ variable P&I. (further -0.05% for <60% LVR)
from 3.09% (CPR 4.13%) investor variable P&I (+0.2% for investor interest only) (further -0.05% for <60% LVR)

*Excludes refinances from within Westpac Group.

I've just refinanced 5 of my properties over from CBA to St George Bank which resulted in me getting a total cashback of $12K from St George Bank. My interest rates also reduced when I switched to St George Bank which I had been trying to get CBA to do for a while with no luck as apparently banks don't value existing customers as much as they do new customers.

Anyone can access this deal directly from St George Bank. I personally used a Mortgage broker to help me do this as I am extremely time poor and the Mortgage Broker pretty much did everything for me. I was extremely happy with his service and would highly recommend him to any fellow Ozbargainer needing someone who is honest, reliable, efficient, available at all hours, quick to respond to emails/sms/phone calls etc. His name is Tony from Pagoda Finance and can be reached on 0403 828 880 and/or [email protected]. Full disclosure - I do not get anything for this referral. I am simply providing this information to fellow Ozbargainers who may be looking for a good mortgage broker to help with their refinance as I can vouch for him from personal experience. I understand good service is hard to find these days and I figured there may be people out there like myself who are simply too time poor to go through the refinance process themselves directly with the bank.

Financial Home Loan

31 Mar 2021

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St.George Bank

closed Comments

- OzBrogains on 20/09/2020 - 12:45
  
  I had a similar situation with my "Digital Lending Manager" (who are assigned online applications). The chump was more or less uncontactable for weeks. Got greeted by his voicemail message everytime and simple email queries were unresponded to. I had to get the contact center to email him and CC his manager for me to get a response (and when he does, he gives me the usual "sorry for not getting back to you, we've been flat out…" spiel)
  
  I suggest doing it at a branch this time around. That way you have a physical contact you deal with.
  
  Personally I'm going to see if any of the other big players follow suit. My recent application with ANZ (handled by a branch manager) was chalk and cheese compared to St G. Updates every step of the way and actioned things they agreed to do.
  - carva848 on 20/09/2020 - 14:41
    
    +1
    
    Both very good examples which illustrates the potential value of using a mortgage broker (a good one though - I'm sure there may also be some incompetent ones out there). It is in the mortgage broker's interest to provide you with a high level of service and jump through hoops to help get your deal done ASAP without you having to do so.
    
    As mentioned by OzBrogains, if you're lucky enough to be handled by a brand manager, then that would be just as good too!
bokchoy on 20/09/2020 - 12:18

Are your properties Cross-Collateralised? There are of course pros and cons - but just something to be aware of, especially if all your loans are with one bank

Info below for others that aren't aware of what this is:

https://www.homeloanexperts.com.au/investment-loans/pros-con…

What is cross-collateralisation?
This is where more than one property is used as security for a mortgage rather than a standard home loan where you have one property securing one mortgage.
How most property investors start is by buying an owner occupied property and building equity by paying down the loan and through market growth.

What are the drawbacks?
Market downturns can be devastating
This is where cross-collateralising can be a death knell to your investment plans.
Most investors are weary of avoiding concentration risk or not “putting all of their eggs in one basket” when it comes to choosing property locations.
However, even if most of your properties have enjoyed a capital gain, a significant drop in value with just one of your properties could see the net effect on your total portfolio value reach zero.
That’s because the properties are linked.
The equity in the property that increased in value can’t be accessed because the overall equity in the portfolio didn’t increase.
For example, property prices have dropped considerably in mining towns that have seen significant economic deflation, most notably in Western Australia.
Banks can get power over your home
If you can’t pay your home loan, the bank can decide where the proceeds of a sale are allocated on your cross-securitised mortgage.
They can pretty much tell you what loan to pay, how much and when in order to keep the LVR within their acceptable level, usually at 80% of the property value or lower.
This could potentially mean they can force you to sell your own home rather than one of your investment properties.
- UFO on 20/09/2020 - 12:45
  
  +1
  
  If you have multiple properties with one bank, they WILL lock up all your properties and 'cross-collateralise'…. I've never dealt with a bank that didnt, and they'd be mad not to.
  
  Different loans, different properties, but all secured under one umbrella loan arrangement. No way they'd hang their butts out needlessly. Lock all the properties up together, and they will foreclose on one after the after until outstanding debts are paid.
mr_asstight on 20/09/2020 - 12:38

+1

I wish I didn't refinance via broker. Locked in and have to pay fees for not staying 1.5 years
- carva848 on 20/09/2020 - 12:40
  
  Is this fee payable to the lender or to the broker?
  - mr_asstight on 20/09/2020 - 20:31
    
    Broker
- Destin on 20/09/2020 - 19:09
  
  Following comment, I didn't think this was a thing.
- GuyfromMelbourne on 22/09/2020 - 13:24
  
  What? How did that happen? You are banks customer at the end of a day. How can a broker do that?
MaxHashrate on 20/09/2020 - 13:15

+1

Good deal but wouldn't advise people in Perth to apply for it. I had a st george credit card application which i needed to go all the way into the city to get my identity verified because there was only one branch. Better off deal with big 4 or local bank like bankwest. If you have any issues it will be a hassle to deal with over the phone.
- carva848 on 20/09/2020 - 13:50
  
  Solid advice!
ujwols on 20/09/2020 - 14:06

+12

Did some maths, so even with $4000 cashback it seems I will be worse off by $337 in my case considering the time you have to spent with variable rate with the current lender while waiting for refinance to complete and also the duration you have to wait with the new lender while refinancing it again …

It seems best scenario for me is to just fix my loan with the current lender (NAB)

https://docs.google.com/spreadsheets/d/1j1Pc-enfCrlMh_EQc6R6…
Sharing my calculator so you can take informed decision, if any questions let me know..
- Dontreadthis on 20/09/2020 - 14:36
  
  +1
  
  +1 for effort!
- carva848 on 20/09/2020 - 14:47
  
  +1
  
  great analysis!
- bausie on 20/09/2020 - 15:41
  
  +1
  
  Well done on this, love a good excel file :).
  
  Questions I would ask:
  
  When does your existing fixed rate expire?
  Are you looking at refixing and incurring a break cost on your existing loan with your existing lender?
  Is there a benefit in waiting given the soft market in rates considering that a lower fixed rate might eventuate at the end of your existing fixed rate term?
  You metion loans* specifically do you have more than one property hence eligible for more than $4000 as a rebate?
  How much do you plan towards your exisitng loans/would there be a benefit in a split loan with a partial variable with an offset?
  Longterm plans for property (is it a home that you MAY convert into an investment in the future hence a benefit in having a variable with offset so you dont pay down too much balance?
  
  Kind Regards
  - Korban Dallas on 20/09/2020 - 15:49
    
    Some banks allow you to break early by 2 months. I know Suncorp do
  - ujwols on 20/09/2020 - 16:00
    
    Hi, Thanks my reply below:
    
    1) When does your existing fixed rate expire?
    Feb, 2021
    
    2) Are you looking at refixing and incurring a break cost on your existing loan with your existing lender?
    Is there a benefit in waiting given the soft market in rates considering that a lower fixed rate might eventuate at the end of your existing fixed rate term?
    
    No I won't break if if I stay with current lender, that was just for calculation if I was to break it and refinance to new lender
    
    3)
    You metion loans* specifically do you have more than one property hence eligible for more than $4000 as a rebate?
    
    Only one loan
    4)
    How much do you plan towards your exisitng loans/would there be a benefit in a split loan with a partial variable with an offset?
    
    Yes considering two splits. One fixed and another variable
    
    5)
    Longterm plans for property (is it a home that you MAY convert into an investment in the future hence a benefit in having a variable with offset so you dont pay down too much balance?
    
    Rate difference between variable and fixed is >0.50%, so I am considering fixing it.. Long term the property may however turn to IP
    - bausie on 20/09/2020 - 16:37
      
      +1
      
      Started typing out re-replies but realised your strategy is sound.
      
      I would revaluated what refinance offers are available in February 2021 and continue to monitor your break cost between then and now.
      
      I imagine more banks will jump to the $4000+ refinance rebate appetite. Given you only have one property the promotion listed above doesn't really benefit you as much as it would someone with multiple properties.
      
      I (mortgage broker) am current refinancing a customer of mine with 3 properties accross to Bank of Melbourne for $8,000.
      
      There is a rate benefit and a rebate for these kind of customers but the deal is not super competive for single property owners.
      
      (my 2c)
- macr0hard on 21/09/2020 - 10:18
  
  Thanks for sharing the doc. Sorry i'm a bit slow, what's the difference between column B, C & D for the "Value"? They look to be exactly the same?
  - ujwols on 21/09/2020 - 14:50
    
    Just different loan scenarios..
- latinamorena on 13/10/2020 - 11:02
  
  Thanks for sharing! I think you may need to change the formula for the annual fee calc as it is x 2 when I think it should be x (#months (new lender)/12)
RimofLeo on 20/09/2020 - 16:40

Terrible experience with St George… Avoid.
hishaken on 20/09/2020 - 17:02

What is the best rate for investment property IO/PI?
CodeXD on 20/09/2020 - 17:14

2.24% (CPR 3.45%) fixed 1-3 years owner occ P&I. (further -0.05% for <60% LVR = 2.19%)

Does the fixed rate with the advantage package include offset?
- carva848 on 20/09/2020 - 17:48
  
  I've got the advantage package and yes it does include the offset
  - 22slurpee on 21/09/2020 - 22:34
    
    You sure? Website states "partial offset" for fixed loans. Not clear on what they mean
    - carva848 on 21/09/2020 - 22:45
      
      Partial interest offset accounts works by partially using your offset account against the current balance in your home loan account. This may mean up to 40% of your offset account is used to offset the interest paid instead of the full 100%.
      - 22slurpee on 22/09/2020 - 09:53
        
        @carva848: not really an offset. Got this from online chat:
        
        A partial offset is only available on a fixed rate home loan. We calculate the interest charges on your loan account each day by dividing the balance owing on your loan account at the end of each day in the following 2 Parts:
        
        a part equal to the sum of the credit balance in each linked account at the end of that day. Interest charges on this part of the loan are calculated by applying the daily percentage rate less the daily partial offset rate (0.70%).
        
        the remaining part of the balance owing on your loan account at the end of each day. Interest charges on this part of the loan are calculated by applying the daily percentage rate.
        
        carva848 on 22/09/2020 - 09:57
        
        +1
        
        @22slurpee: Yes you're right - not a true full offset that we're usually used to.
        
        I guess generally speaking, fixed loans don't usually include offsets normally. Offsets are generally for variable loans. But I guess in this case, St George has offered this partial offset as a bonus for their fixed loans.
        
        CodeXD on 22/09/2020 - 13:58
        
        @carva848: Thanks. I asked my broker and got the same respond, St George does NOT offer offset account with fixed rates.
        
        ANZ has full 100% offset for their 1 year fixed loan btw which is why I asked.
Ok computer on 20/09/2020 - 18:49

Tried to apply and after I put all my details in , the website says I am not online .. go figure…

I still have an ANZ CC application from early August. Don't think I have the energy to battle another round of systemic incompetence. After reading other St.George problems I might keep moving.
- carva848 on 20/09/2020 - 19:07
  
  Try hitting up a broker if you've still got the appetite to access the $4k cashback offer from St George. Will save you the pain and frustration of trying to apply online yourself.
PT1987 on 20/09/2020 - 18:59

How long it take to get cashback into account? Do they have off-set or redraw account?
- carva848 on 20/09/2020 - 19:04
  
  Up to 60 days after settlement.
  You have a choice of the Basic Product which has the redraw OR the Package offer which includes an offset account.
amsaini15 on 20/09/2020 - 19:41

Is there a way lender can acertain if you can refinance with them or not without affecting your credit rating?
All those people saying they refinance every 2 or 6 months, are they still able maintain good credit score?
- carva848 on 20/09/2020 - 19:43
  
  Not sure whether the lender is able to do this or not. But I know for sure a good broker will be able to do so. They are generally pretty aware not to create a credit check unnecessarily. They would have the tools to ascertain whether you'd be able to refinance with a lender before proceeding with the process.
- El-Rhi on 21/09/2020 - 06:27
  
  No, the lender will need to do a credit check to finalise the application. You can ask them to look at serviceability first as if you fail this then the application won’t proceed to a credit check. I have refinanced 4 times this year, plus had 2 new credit cards any my credit score hasn’t been impacted.
  - Cheequee on 21/09/2020 - 07:19
    
    And each time you refinanced with a cashback offer?
    - ujwols on 21/09/2020 - 08:39
      
      Yes
  - El-Rhi on 21/09/2020 - 08:41
    
    +1
    
    Yes, I’m about to settle on my fourth $4k Cashback this year.
    - Mag05 on 21/09/2020 - 16:56
      
      Wow.:)..great…how to do that? you normally put as variable loans, so no breaking costs? i'm having two loans..less 80 LVR..but both are fixed for 2 years…I dont like to break and pay from my pocket for the breaking fees etc.
      - El-Rhi on 21/09/2020 - 17:27
        
        +1
        
        @Mag05: Yes that’s it. Keep it variable and you can switch whenever you like.
        
        Mag05 on 22/09/2020 - 14:33
        
        @El-Rhi: That’s so great. I want to be your friend actually 😊
big bill broonzy on 20/09/2020 - 19:45

I have a $300,000 loan. I have already paid off $70,000 of the loan, but $40,000 of that is from extra payments. Would I still meet the > $250K requirement?

Thanks
- carva848 on 20/09/2020 - 19:46
  
  Yep! You'd just need to refinance the loan amount of at least $250k. Any excess cash you have you can just pay back into the loan after the refinance OR keep in your offset if you decide to go down that path.
  - big bill broonzy on 20/09/2020 - 20:33
    
    Great, I thought that might be the case. Thanks for your help
PROZ on 20/09/2020 - 21:49

-1

NO. based on my customer service experience with st George bank. I am in process to refinance my investment property with Comm bank.
Current interest rate with st George - 3.4%
New with comm bank - 3.2%
- Djpumpthebeat on 21/09/2020 - 11:37
  
  Do you have a variable interest rate investment home loan for the 3.2%?
  - PROZ on 22/09/2020 - 05:49
    
    Yes
    - GuyfromMelbourne on 22/09/2020 - 13:32
      
      +1
      
      Westpac offering 2.59 variable for investment. No package fees too. Just fyi.
    - Djpumpthebeat on 23/09/2020 - 22:56
      
      Do you have an offset ?
      I'm trying to understand why yours is lower than mine which is 3.3%
OzFrugie on 20/09/2020 - 21:58

No owner occupied IO?
Aerith-Waifu on 21/09/2020 - 01:12

Is this $4000 taxable?
- carva848 on 21/09/2020 - 05:48
  
  +2
  
  The cashback doesn't need to be reported on your income tax return as it relates to a borrowing rather than an investment. As the payment relates to the loan rather than the property there are no capital gains effects either. You don't need to reduce the CGT cost base of the property by this amount.
Jackson-FinanceHouse on 21/09/2020 - 10:14

-1

This is a duplicate. https://www.ozbargain.com.au/node/566430 ?
macr0hard on 21/09/2020 - 10:15

Does this work if a mortgage is paid off already? i.e. just apply for a new loan instead of refinance from another lender?
- carva848 on 21/09/2020 - 20:24
  
  Unfortunately not. This offer is currently open to refinances..
OzBrogains on 21/09/2020 - 10:32

Anyone have experience as to whether this be done in person at a branch?
- carva848 on 21/09/2020 - 10:34
  
  +1
  
  It can definitely be done at the branch. Just make sure you request to deal with the branch manager directly otherwise you may not get the service you're after which may cause more frustration for yourself. All the best!
pmx7 on 21/09/2020 - 11:29

Should be noted Bank of Melb offering same deal as they're both part of the Westpac group. Terms state if you can't jump from one brand to another.
- Djpumpthebeat on 21/09/2020 - 11:35
  
  +1
  
  This offer is not the best. I called them and their rate for an offset account is 3.80%. I'm getting a cheaper deal with CBA at the moment so the $4000 is not enticing. Look at the long run perspective people!!!
  
  If you want to finish your loan fast, choose variable
  - pmx7 on 21/09/2020 - 11:37
    
    They always try to scam you with a high rate. I bet if you called CBA as a new customer they'd also quote you the advertised rate which is much higher than you're already on. Gotta go through the app process then haggle. Annoying but necessary.
Sky frog on 21/09/2020 - 12:57

+1

Hi, my broker will charge me some fee ~2k if I refinance within 2 years. According to the broker they will loss their commision if I switch within 2 years hence they need to recoup some fee from me if I move, is this common pratice with broker?
- chutibuti on 21/09/2020 - 13:15
  
  Before bank,, time to change your broker :)
- donga100 on 21/09/2020 - 19:52
  
  Just do it with a different broker who won't charge you the $2k fee. How arrogant and selfish!
- GuyfromMelbourne on 22/09/2020 - 13:36
  
  this is news! They can't charge you fees. Broker is paid enough to carry the risk of clawbacks(paying comissions back). Just go staright to bank. Unless you have signed some extra doc apart from ones sent by the bank.
- Jackson-FinanceHouse on 22/09/2020 - 13:46
  
  This is not uncommon, our firm doesn't enforce it but not unusual at all.
- GuyfromMelbourne on 22/09/2020 - 18:07
  
  -1
  
  brokersworkforyou 😂
- GuyfromMelbourne on 23/09/2020 - 12:46
  
  Looks like govt passed a regulation against passing on the clawback to customers. Read at the link below. https://www.theadviser.com.au/breaking-news/40822-final-claw…
Duram on 26/09/2020 - 09:36

Where does this cashback get paid? doesn't this have the potential to stuff up your tax deductibility?
- carva848 on 26/09/2020 - 09:57
  
  The cashback gets paid into your St George bank account within 60 days of settlement. It is a tax free cashback.
  - Duram on 26/09/2020 - 10:06
    
    The offset account or a normal account?
    - carva848 on 26/09/2020 - 10:08
      
      The account linked to your loan account. Which works usually be the offset of you go for the package.
      - Smaland on 30/09/2020 - 21:35
        
        @carva848: Hi, do you mean the saving account is also an offset account?? Is it possible to get 2 accounts, one is saving a/c and the other one is offset a/c? I don't want to touch my offset if it is not necessary.
        
        carva848 on 01/10/2020 - 00:36
        
        @Smaland: Yes you can. You can just open a savings account via netbank once you're all set up.
arctan on 30/09/2020 - 14:31

Just saw an ad by uno and if you do refinance through them you get 100k velocity points.
Not sure how much does velocity point value these days but it used to be 1c per point. Probably worth 50% of value now so it's roughly $500 if you refinance with UNO (broker) to St George. Plus you will get 4k from St George bank.
OzBrogains on 30/09/2020 - 16:25

+1

I suggest this be done at a branch instead of online.

My timeline of events:

Thursday last week - had original meeting with a branch manager
Tuesday this week - sent all info to branch manager
Wednesday (today) - documents vetted by branch manager, application submitted and approved by back office team.

I have a pretty low-risk loan, with a desktop valuation done.
R3XNebular on 01/10/2020 - 09:21

My mortgage broker stated they would lose commission if I changed home loans within the two years. Should I just fix my loan then?
- carva848 on 05/10/2020 - 21:23
  
  +1
  
  I wouldn't base your decision on whether to fix your loan or not on your brokers commission/clawback.
  
  He should help you decide the best option for YOU - regardless of the possibility of his 'lost' commission.
daneo1 on 01/10/2020 - 18:05

-1

are there options with offset account? coz it seems like its all with redraw.
- OzBrogains on 02/10/2020 - 10:09
  
  You can literally click the link and find out yourself mate
- carva848 on 05/10/2020 - 21:21
  
  If you get the Advantage Package, then you will have options for an offset account for your variable loan accounts.
  
  The redraw facility is for the Basic package.
Trendyoz on 02/10/2020 - 20:41

-1

How much were the fees?
- carva848 on 05/10/2020 - 21:20
  
  What fees are you referring to?
  - Trendyoz on 06/10/2020 - 23:07
    
    Refinancing fees.
    - carva848 on 06/10/2020 - 23:16
      
      As long as you're not in a fixed loan, the refinancing costs are usually about $600-$800 for most lenders. So with the $4,000 cashback, you'd be well ahead.
mogambo on 07/10/2020 - 14:48

Owner Occupied at UBank is 2.49% variable, with 2.49% comparison. StGeorge has 2.64% variable, with 2.66% comparison.
Even with the $4k cash back by StGeorge, not sure if the higher rate is worth making the switch.
Love the calculator created by @ujwols!
- OzBrogains on 07/10/2020 - 14:59
  
  +1
  
  Really depends on your loan balance that is exposed to interest. Mine is about $100k so even refinancing to a higher interest rate loan will be profitable for me.
- BexForHeadache on 20/10/2020 - 00:12
  
  +1
  
  A .17% difference is worth $500 a year on a $500k loan.
  
  Edit - Sorry my brain calculator failed me, its actually $845 a year.
JHoliday on 18/10/2020 - 00:44

Did everyone need to get their property valued before getting approval for their loan?

How long did it take for the valuer to call you? I was told 48 hours but it has been more than that and I haven't heard anything.
- carva848 on 18/10/2020 - 01:00
  
  I got my valuation back the next day. It was very quick
  - jakxon on 18/10/2020 - 13:27
    
    You can use this: https://www.propertyvalue.com.au/ing
    
    It's free!
    - carva848 on 19/10/2020 - 07:27
      
      I think JHoliday was talking about the bank valuation which is part of the loan approval process..
      
      But that's a great and handy link! Thanks!
- BexForHeadache on 20/10/2020 - 00:10
  
  Wasnt required for me.
R3XNebular on 21/10/2020 - 12:44

I seem to only can get 3.19% for full variable offset, redraw. Owner occupied. Is this only available to certain mortgage brokers?
fez on 17/11/2020 - 13:56

+1

Moved over to st George earlier in the year on the last 4K cash back deal
JHoliday on 17/11/2020 - 14:10

How long does it generally take for the $4000 to come through?
- carva848 on 17/11/2020 - 14:10
  
  Within 60 days. But generally earlier than that.
  - Pufff on 09/02/2021 - 16:40
    
    how long is it for the refinance itself?
Pufff on 28/01/2021 - 22:05

I had the worst experience with their CC and gave them a scathing review however a friend of mine went ahead and refinanced with them.

There were issues with the online submission and couldn't even get back on to submit the docs. The person on the end of the number provided to call didn't give a crap and was really disinterested. I thought they were in a rush to get back to sleep or something.

So there's nowhere to send docs and no contact from this excuse for a bank even though the automated email said contact the next day.

How long does it take St George to complete a refinance?

There are only 2 months left and I am doubtful they will get this done to meet the terms.

This was posted 3 years 7 months ago, and might be an out-dated deal.

St George $4000 Refinance Rebate + $2000 Per Extra Property (> $250K)

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