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SGB increase 25bps

Discussion in 'Property Finance' started by liverpool77, 25th Aug, 2015.

  1. liverpool77

    liverpool77 Active Member

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    Hi guys, my SGB interest rates have gone up as of Friday which is to be expected given the current market conditions and pushes from APRA. I did see a number of the larger Banks announce their changes last month however seemed to miss the SGB announcement? Anyway, I got a letter through the door yesterday to advise me - only a couple of days late lol!

    Just wondering of current rates available out there for approx $2M of investment debt? My current rates with SGB are 4.39% (previously 4.14% pre-rate increase) which I was reasonably content with on the Advantage Package. Would it be possible to get better rates elsewhere given this debt position (subject to servicing with LVR <70%).

    I have also noted lots of commentary on the non Bank lenders such as loans.com.au but not gone down that path yet.
     
  2. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    Apparently Westpac and St George had IT issues which is why they were delayed :) as for your other questions the brokers will be here soon
     
  3. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    If you have a PPOR in the mix CBA will probably beat that on rate. Otherwise that's not too bad for pure investment debt.
     
  4. liverpool77

    liverpool77 Active Member

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    A bit disappointed with SGB and my contact there who gave me no indication?
     
  5. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    As @Jess Peletier says, it's a pretty good rate if just investment debt but no harm speaking to a broker about your options. With $2m of debt, you'd be enticing to a new lender.
     
  6. S.T

    S.T Well-Known Member

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    Give the retention team a call direct (1300 302 302) and let them know you're a bit cheesed off at the rate going up prior to them giving you notice. I did it yesterday and got a further discount with only 600k borrowings. Certainly worth a phone call.
     
  7. Redom

    Redom Mortgage Broker Business Member

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    Getting through to retentions will likely do you some good.

    It is a decent rate for investments in this market though - if it were new lending with other banks, it will be hard to beat that for a bank of that size/facility.

    Cheers,
    Redom
     
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  8. Watson1

    Watson1 Well-Known Member

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    Yep, agree either give the retention team a call or get the broker to submit a new pricing for your existing loans via the broker website. STG pricing model has changed in the recent week and are very aggressive, not quite sure about existing customers though. Alternatively just flick a discharge to the bank and see if they bite.

    Really ~4.10% is floor rate for most banks discounts and is what you should target for.

    Also if you are sitting on a 15 year interest only with STG probably best to sit tight unless serviceability is not an issue.
     
  9. liverpool77

    liverpool77 Active Member

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    thanks for the feedback guys.... Have had many a stoush arguement with retentions over the years - just seems like well have to try again!
     
  10. S.T

    S.T Well-Known Member

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    They'd certainly been taking a lot of heat when I spoke to them yesterday, can use this to your favor. Lady kept saying that this is only short term and that APRA had made them put up rates (ha!), seemed like they were quite desperate to retain customers. Good luck!
     
  11. world2160

    world2160 New Member

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    I am on the same rate as the poster at 4.39 after the rate rise. Similar loan size.

    I just called St George Retention and got it to go down to 4.25. Didn't have to haggle much so I am sure I can do better. Still higher than what it was before but happy enough to stay.

    Thanks for advise to call!
     
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  12. HUGH72

    HUGH72 Well-Known Member

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    Great Avatar by the way!
     
  13. spludgey

    spludgey Well-Known Member

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    No luck for me, by the look of things, but I'll have it reviewed and they'll give me a call back.
    Stuck on 4.49% with borrowings around the $1.3M mark.
     
  14. Watson1

    Watson1 Well-Known Member

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    I have to say, in terms of all the lenders I procure loans with, I have to give STG/BOM a lot of credit as they have always accommodated requests for additional discounts for our existing clients and made the process easy to apply the discounts. They were also providing discounts at current offerings to my existing clients. Some banks you can forgot about renegotiating on behalf of existing clients. They even repriced a variable split for a client who had a large proportion fixed.

    However, they do have their fare share of faults that are unique to the bank...
     
  15. spludgey

    spludgey Well-Known Member

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    I gave it another crack and ended up on 4.39%. Not too bad, I guess.
     
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  16. Vassago

    Vassago Active Member

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    I gave it a crack and got 4.39% as well (4.14% for the PPOR)

    :)
     
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  17. cstar

    cstar Member

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    Just rang-up and got 4.49% (was on 4.59%). Not too bad for just under 750K loan. My current broker is offering 4.4% to refinance to WBC.
     
  18. Erica

    Erica Well-Known Member

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    Adelaide
    OMG, this is why I love PropertyChat! I've been with SGB for 7yrs and have never rang the retention team. So after reading your posts decided to give it a crack, and that was the easiest 0.2% off my rate ever, a 5 min chat just saved me $1600 a year!!!! I've saved the number into my phone and will be calling them 6mthly from now on.
    PS. the lovely bloke I spoke to gave me a tip: he said if I get a written quote from another big bank they can match it.
    THANKYOU PC POSTERS!
     
  19. neK

    neK Well-Known Member

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    On 4.44%.... trying to push them down to 4.39% on the investment loan. Lets see how we go.