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