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$1,250 cashback on IPs

Discussion in 'Property Finance' started by Shahin_Afarin, 2nd Sep, 2015.

  1. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Both Westpac and St George have come out with a $1,250 per property for owner occupied and investment property refinances.

    Why IP's?

    In short APRA has previously stated that the lenders can only increase their investment book by 10%.

    From the lender's perspective an increase of 10.1% is a failure but an increase of 9.9% is also a failure. Westpac increased their books by close to 9.9% so they want to get closer to that 10% figure as possible.

    Its definitely a good deal provided that you were previously recommended by your brokers to refinance an IP to St George or Westpac.

    You shouldn't purely refinance to these lenders just to get the cashback considering it will cost you approximately $1,250 in fees to refinance anyway.

    The other product which is getting a lot of traction now (get it while you can) is Homeloans Ltd 85% no LMI on investment properties.
     
    Esh and Azazel like this.
  2. Azazel

    Azazel Well-Known Member

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    Thanks for the info Shahin.
    Such a strange situation where some are totally cutting back, and these guys are enticing people to come over.
     
  3. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    These APRA changes have nothing to do with funding (AKA GFC) - its driven by regulation and targets.

    We are going to see more and more of this as lenders try and manage their sales targets whilst meeting the demands of APRA regulation.
     
    Redom likes this.
  4. Redom

    Redom Mortgage Broker Business Member

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    This offer is great - the basic variable rate from St George at 4.34% stacks up well in the market too.

    Cheers,
    Redom
     
  5. Azazel

    Azazel Well-Known Member

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    We just refinanced away from St George. Might have to consider going back again ;)
     
  6. Brian84

    Brian84 Well-Known Member

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    We have our ppor mortgage with st George. Does this mean we will get it?

    If so then how do we get it?
    Will they notify us?
     
  7. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

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    It's only for refinances, not existing loans.
     
    Brian84 likes this.
  8. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Unfortunately banks are more concerned with growing their market share than retaining their existing customers. These sort of promos are only available to new lending.

    Cheers

    Jamie
     
    Brian84 likes this.
  9. Brian84

    Brian84 Well-Known Member

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    Yes
    Yes they don't want to know you once they have your business.
     
    Bayview likes this.
  10. Jeah_

    Jeah_ Well-Known Member

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    We currently have 3 loans with St George, none of them at 4.34%. I think I might send an email to our contact and ask her to refinance all three of them..
     
  11. sash

    sash Well-Known Member

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    Compared to what Shahin?

    Care to explain this one?

    This is a very strange post....I hope this is not a revenue maximising opportunity on your part??

    Personally both Westpac and St George are excellent lenders as they offer reasonable rates with 15 yrs I/O only periods. The only disadvantage is that they want 20% deposits...

     
  12. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Revenue maximising opportunity? At the very least I would make the effort of adding a signature with contact me flashing every which direction.

    My suggestion is to go back and read the post carefully which states don't move just for the cash back however if you have been recommended to switch an IP to St George for whatever reason then this is going to be a sweetener and its an interesting offer since its also on IPs.

    In terms of St George and Westpac being good lenders - you simply cannot make a blanket statement like that. You are an experienced investor and people intentionally or unintentionally act on your statements so at the very minimum get your facts right.

    A lot of my personal portfolio is with St George and Westpac but here are some of the scenarios whereby they just simply do not compete:

    1. Rental reliance policy (Westpac) - so if your rental income is more than 50% of your total income then Westpac is the worst lender for this investor. A lot of people on the forum fit this category.

    2. Allowance income (St George) - St George will take (even at 80% LVR) the lower of your YTD or last group certificate. This is a killer in a lot of cases as the investor may have recently had a pay increase.

    3. Servicing calculator (Westpac) - It sucks. No negative gearing kills a lot of deals particularly those with bigger portfolios.

    4. Non resident policy (Westpac) - they accept a lot of crazy currencies which is great BUT this is seriously negated but the fact they do max 70% LVR and take 80% of converted income. The craziest thing is that they apply this to expats. I have a couple which are aussie citizens working as solicitors in Hong Kong - the max they can go with is 70% LVR! Other lenders will take higher incomes - some take 90% of the converted income and some like NAB take 100% of the income.

    There are heaps more but the point is that most lenders can be perfect fits and they can also be the worst lenders for other scenarios/investors.

    Ps they don't do 15 years IO anymore on owner occupied properties. Its only 15 years on IPs. Also you are bound to go back and pull out some equity within the 15 years so the term is going to change then anyway.
     
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  13. Biz

    Biz Well-Known Member

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    lol I don't think Shahin needs any revenue maximising at the moment :p
     
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  14. Azazel

    Azazel Well-Known Member

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    How so?
     
  15. Mick C

    Mick C Well-Known Member

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  16. sash

    sash Well-Known Member

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    Shahin....let clear some of the facts.

    As an experienced investor...these are the facts:

    1. Westpac's rent reliance policy can be reviewed by credit as they have in my instance where my rental income is multiples of my salary. And they continue to approve loans for me.

    2. Not true about St George....based on personal experience....

    3. Really..have already $2m and were willing to lend more...

    Me thinks you are not keen to do your home work! It also reflects on whether you as a broker is acting in your clients interests.

    Go luck taking the low hanging fruit mate. I certainly wouldn't use you!

     
    Brady likes this.
  17. sash

    sash Well-Known Member

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    Some brokers are not acting in the interests of the client. They seem to be more concerned about cherry picking the easy finance deals. Of course I am not saying who that is on the forum but I have had more than a couple of PMs and it is more than coincidence this is happening.

    For the record...I use no one on this forum...I use my own brokers and leverage my relationships with banks. A word for the uninitiated you need to get a very good grasp of finance and how to structure...leaving to it just brokers is fraught with risk in my opinion!
     
  18. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Westpac's rental reliance is a hard and strict policy and its not easy to get policy exceptions. The question is why even request a lender to do a policy exception if you don't need to in the first place.

    Why take the risk and unnecessary hit on your credit file all for a credit manager to feel whether or not they want to waive a policy exception. Just because you were able to get a policy exception doesn't mean the next person is.

    Re St George's allowance policy - don't say its not true because its actual policy. You keep comparing your personal situation and thinking its standard policy.

    You may have $2mil with Westpac and thats awesome but their borrowing capacity calculator is conservative. This is a fact. You cannot argue this. Again you keep comparing your personal situation and you may have an extraordinary income to support the debt but at the end of the day Westpac's servicing calculator is far more conservative than other lenders.

    You keep trolling and making stupid comments - I know its difficult but try and get your facts right. Quote the lenders actual policies and procedures and not what you think.
     
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  19. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Are you referring to me? Best to man up and call me out if you are rather than make these sly comments.
     
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  20. Azazel

    Azazel Well-Known Member

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    I for one can say Shahin has given me free advice and his time, and didn't try to poach me or anything.
    I would employ his services in the future.