Loan rates query at St george

Discussion in 'Loans & Mortgage Brokers' started by robertd, 29th Oct, 2017.

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  1. robertd

    robertd Member

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    A family member is applying for a top up loan 20k.

    She has the contract and it states:
    ''Current annual percentage rate on this loan is 4.270%. The following applies to you if you borrow the additional loan amount:

    In connection with our Advantage package we have negotiated a special annual percnetage rage with you. While you are on the Adv package, this rate is below our owner occupier standard variable rate during that time. The margin is currently 0.800% per annum below our owner occupier standard variable rate during that time. Accordingly the owner occupier negotiated variable rate is 4.420% per annum at the variation disclosure date. ''

    I dont understand about the .80 discount. What is the original rate and what is the discounted rate. I dont understand the rates at all!

    thanks
     
    robertd, 29th Oct, 2017
    #1
  2. Trainee

    Trainee Well-Known Member

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    The rate is 4.42% with the package. What else is there to know?
     
    Trainee, 29th Oct, 2017
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  3. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    @robertd

    That sounds like package discount. Headline rate for the lender minus the discount gives you the rate.

    St George headline standard variable rate for owner occupier P&I is 5.22%, minus 0.80% discount gives you the 4.42% rate.
     
    Property Twins, 29th Oct, 2017
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  4. robertd

    robertd Member

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    Are there any brokers who can advise if this rate is a good deal or not?
    thanks
     
    robertd, 29th Oct, 2017
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  5. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    @robertd

    What is the loan to value ratio and total loan amount ie including the existing borrowing?

    4.42% seems high.
     
    Property Twins, 29th Oct, 2017
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  6. robertd

    robertd Member

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    458k / 78.76%
     
    robertd, 29th Oct, 2017
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  7. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    Ok that's a high rate at that LVR.

    if it was 95% LVR, it would have been ok.
     
    Property Twins, 29th Oct, 2017
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  8. robertd

    robertd Member

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    can she try to negotiate that at a branch of st george or will they not change it?
     
    robertd, 29th Oct, 2017
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  9. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

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    She could always try :) or alternatively look at better deals out there. Generally banks are more likely to negotiate for new lending than existing :)
     
    Property Twins, 29th Oct, 2017
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  10. Anthony416

    Anthony416 Well-Known Member

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    I had to shift away from St George because they did not want to play ball.......
     
    Anthony416, 29th Oct, 2017
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  11. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Typically, a reprice would glean a 1 to 1.4% disount over the existing .80

    STG isnt one of my fave lenders since any SVR loan split needs a full app :(

    ta
    rolf
     
    Rolf Latham, 29th Oct, 2017
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  12. Redom

    Redom Mortgage Broker Business Plus Member

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    Rate is a bit high - St G discounts are far better than that at the moment too for OO mortgages (1.30%+).

    Someone isn't doing a basic pricing request here.

    No need to go overboard and refi/etc unless its suitable/preferred, simply request a pricing discretion and the rate will come down at least 0.40-0.50% i think.
     
    Redom, 30th Oct, 2017
    #12