As part of Westpac group, St George / Bank of Melbourne has revised its Basic variable product.
Word of warning, for many this is a better product than the Westpac Flexi First intro rate (high risk due to below):
- In 2 year's time, Westpac intro rate will jump 0.4% and trap many who cannot refinance in 2 years because as rates are tipped to rise by up to 2% in 2 years time, it increases the bank's "assessment rate" (the 3% higher buffer rate that bank assessors use to approve the loan factoring in risk, not the 'actual rate') from today's 5% to up to 7% in 2 years time.
- Many will be unable to refinance due to being assessed at 7% and trapped in a 'mortgage prison' with a 0.4% higher rate equiv to 2.59% CPR 2.93% as of today. (The banks know this). If you are close to max borrowing, or incomes are expected to stay the same or similar to inflation with no guaranteed wage increase, best to stay away from intro rates which jumps up.
- St George offers $4000 cashback ie $1000 more than Westpac, equiv to 0.33% on a $300k loan, 0.2% on a $500k loan, 0.1% on a $1m loan.
no annual fee, free redraw. no offset. $100 once off settle fee (vs Westpac $355)
- The CPR is lower than the Westpac CPR of 2.53% because Westpac Flexi First is a 2 year intro only and jumps up
Variable from 2.29% CPR 2.31%(60LVR. +0.05% for 80LVR) - lifetime discount 30 years and does not jump up in 2 years
Free redraw, no annual fee. No offset.
Package offset rates vary depending on loan size, LVR etc. We have achieved 1.99% - 2.49% recently.
85%LVR $1 LMI for first home borrowers (<$850k)
We are Flame (highest level) brokers at St George and the Westpac group and get the fastest turnaround times due to our high volumes of high quality applications and approvals and our relationship with the bank over many years.
$4,000 bank cashback (>$250k, 80LVR)
Other lenders up to $6000 cashback other lenders and 2.09%
$3,000 Westpac, variable from 2.09% flexi first 2 year intro rate, free redraw no annual fee - recommend only if you expect wage increase or not near max borrowing capacity for reasons above
$4,000 ANZ - no package annual fee for offset
$3,000 ING - per application (>$500k loan size but can owe less)
$3,000 - $6,000 (up to) PURCHASE OR REFI Citibank
Contact us for other offers
PLUS up to 0.4% ie $4,000 broker rebate per loan (on top of bank cashback, available via broker only, not via the bank)
In ADDITION to bank rebates, we have 0.3% - 0.4% broker rebate (based on net of offset/redraw ie balance owing) for ANY bank or product above. (Loans >$250k paid as eGift cards from any retailer of your choice 50/50 at 12 and 24 months after settlement as eGift cards from any retailer of your choice. If more than 50% of the total loan is fixed, the first instalment may be provided at 2 months after settlement. T&C’s apply.
Contact Us for this offer
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Bundle Property Home Loans
T: (02) 9698 7186