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
<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