St George Redraw for Basic Home Loan

Hi

Friend has a St George basic home loan and a transaction account. On the home loan, she has a redraw account.

She has been told that any money she transfers from the transaction account to the redraw will not show up until the 16th of every month, basically the money she transfers reduces the interest in the loan account but the money doesnt "clear" in the redraw until the 16th.

Has anyone ever had any experience with this and any way around it? Its fairly outdated.

 

Yes there are some strange requirements with st g.

 

Thanks Terry

Any suggestions? Friend has paid LMI and deposit was only 10%, so limited options to change to another bank. Furthermore, paying the $395 fee for offset isnt worth it as it is owner occupier loan

 

why does she want to redraw?

 

She wants to have as much money in the redraw as possible to pay less interest, but she would redraw to pay one off expenses etc.

Also, the other thing is that St George cant take the monthly loan repayments out of a loan account, has to be a different account. Max they could do this was for 90 days, you cant have a standing instruction with them

 

Not many banks would draw loan repayments from a loan account - this would be borrowing to pay the loan.

She will have to work around the delay and probably need a separate savings account with some cash in it.

 

Hi Terry

It would be drawing down from the "extra" amount put into the redraw.

 

That is borrowing to pay the loan!

 

Yep understood. Only solution for the time being is to make deposits on the 15th of each month so they then can be accessed from the 16th, use a credit card or switch to something with a offset.

Do you think it would new application to switch to an offset with St George?

 

I am not sure. probably not.

 

How very odd. I think some of St Georges systems need an update!!

That goes for their netbanking site as well!