Westpac vs St George

Discussion in 'Loans & Mortgage Brokers' started by bne123, 7th Aug, 2019.

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  1. bne123

    bne123 Active Member

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    Hi everyone,

    I'm looking into getting a loan for PPOR and been quoted following rates from the two banks.

    Borrowing 450K
    LVR 90% (LMI waived for both banks)

    Westpac
    OO P&I 3.48% variable
    Rocket repay with $395 annual fee
    Full offset account


    St George
    OO P&I 3.42% variable
    Also advantage package $395 annual fee but first year waived
    Full offset account

    I have not banked with St George before so wondering what other people's opinions are?
    Which bank would you choose?

    Any advice would be much appreciated!
     
  2. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    I would prefer Westpac myself. But...
     
  3. shorty

    shorty Well-Known Member

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    St George are ok. They're on the osko quick payment bandwagon now which has made them heaps better. Transfer from NAB takes 10 seconds. CBA to NAB still takes 2 days. Don't know what Westpac's internet banking is like.

    They're a bit needy with their marketing, I get weird emails and texts pining that I haven't called them back, but otherwise they are ok.
     
  4. Propertunity

    Propertunity Well-Known Member Premium Member

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    Buy 2 x IP's and use them both - one for each. You won't get rich just buying one.;)
     
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  5. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    Are you a medico, accountant or solicitor?

    Really depends on a number of things including future borrowing capacity.

    They have different advantages but not all of those advantages may be applicable to you.

    Westpac has a much easier process for balance re-limits, St George has ability for greater exceptions when it comes to medicos, etc.

    The rate though on both loans is a tad bit high - they can both do better rates.
     
  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Neither? I've had loans with both, I continue to write business with both, but neither are a preferred lender.

    If I have to choose, I'd usually go with Westpac unless there's a niche that makes the deal suit St George better.
     
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  7. bne123

    bne123 Active Member

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    Thanks for all your feedback!

    I am a pharmacist and as far as I know Westpac and St George are the only banks that allow pharmacists to be on medico policy? Correct me if I am wrong.

    I have been following the threads about interest rates others have been able to negotiate but I believe because my borrowing isn't as big as others as well as high LVR, the rates that have been offered to me are not as competitive? Or should I still try to haggle more?

    Any specific reasons why you would prefer Westpac? or neither?
     
  8. kierank

    kierank Well-Known Member

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    Until recently, we had a split investment loan with St George. Both split were IO and the smaller split had an Offset fully chocked.

    When the IO term expired on the smaller split, St George would only allow P&I. I wasn’t happy but I let it run as it was fully chocked.

    When the IO term expired on the larger split earlier this year, St George wanted it to go P&I as well.

    I was totally pi$$.d off. So, I refinanced with another bank, both splits IO again, both with far better interest rates, resulting in interest payments reduction of nearly $9,000 pa.

    Since then, we have closed down all of our StG bank accounts including our credit card. They lost a very good, loyal customer with over 11 years of great payment history.

    Their loss, my gain :D.
     
  9. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    BoQ also does LMI waivers for pharmacists although I would definitely stick with Westpac or St George.

    Re the difference between Westpac and St George - again this is dependent on your specific situation. A bit hard to say with the limited info at hand but as a general statement - St George is a superior "medical" lender to Westpac. There is a lot of flexibility with St George as they take a very pragmatic approach to medico lending.

    Re the rate - its too high. You need to get the broker or banker to escalate the pricing through their state manager or head of pricing.
     
  10. Codie

    Codie Well-Known Member

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    Re - LMI being waived, is there any lender that takes Registered Nurses under this umbrella?
     
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  11. Shahin_Afarin

    Shahin_Afarin Residential and Commercial Broker Business Member

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    No unfortunately they don't fall under the medico category.

    ANZ has a niche where physiotherapists and Chiropractors fall under the medico category.
     
  12. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Whilst it's not written down, a very general rule of thumb tends to be that the LMI waiver applies where the medical professional can write a prescription.
     
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  13. Propertunity

    Propertunity Well-Known Member Premium Member

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    upload_2019-8-9_10-58-29.png
     
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  14. TSK

    TSK Well-Known Member

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    the whole lmi waiver based on your employment industry stinks imo. surprised such discrimination is still allowed.
     
  15. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    It helps out the less fortunate of our society. Those on high incomes.
     
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  16. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    Kind of like charging someone who's in arrears an extra 2% plus fees to help them get back on their feet.

    I definitely don't think lawyers should get an LMI exemption for a couple of reasons:

    * They're lawyers. If the default, they're more likely to have the skills and resources to get out of their obligations. Given the higher risk profile, they should probably be charged extra LMI.
    * The world would have less need for lawyers if there weren't any lawyers.
    * Did I mention they're lawyers? 'Nuff said.

    Now if you'll excuse me, I've got a $2M deal to process for a lovely couple (who are both lawyers). o_O
     
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  17. sumterrence

    sumterrence Well-Known Member

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    I worked for both banks before and still have loans with both banks, I will pick St George over Westpac for their more advanced technology and more user friendly Internet banking. And as someone mentioned above that St George use the osko payment system which is another plus.
     
  18. tobe

    tobe Well-Known Member

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    I think it’s bank first who have lmi waivers for anyone who works in Education or health. Citi and pepper have an LMI waiver for anyone, but only to 85%...
     
  19. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    For active debt recycling on a PPOR, STG portfolio works well, BUT is an LOC product with repayable on demand clauses:(

    WBC can do similar with their EAL, same risk issues

    WBC can split down Rocket loans without new app, which is hard with STG SVR loans

    ta
    rolf
     
  20. Pash81

    Pash81 Well-Known Member

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    Ok. So based on the below information which one would you pick? Need to make a desicion soon:

    Medical Professional with 90% LVR
    STG Interest rate offered is 0.1% lower than WBC
    Upfront cost with STG apporx $300 but WBC $0.
    Both offering only 1st year annual package fee waiver
    Might need some split loans for DR purposes in future
    Will need a new construction (land+house) loan next year but job might change from PAYG to an independent Contractor under ABN