Westpac vs St George

You'll have to dig into the terms and conditions, but it specifically mentions only once per 12 months. I've fairly certain the promotion won't last 12 months.

ANZ's serviceability isn't as good as most lender, although there are some niches where they do okay. Given your wife is about to become self employed, you shouldn't assume you can simply refinance in the future. Lenders generally require 2 years ABN registration before they'll recognise the income.

 

This is the main reason I'm refinancing all the loans and pulling the equity out as I will have to settle a block of land and build a house by the end of next year. Worst case scenario if I dont get full loan for this new property, I'll use the money taken out now.

 

I really think you need to speak to an experienced broker and let them guide you accordingly.

There are a lot of variables and there really isn't a blanket statement of this lender is better than that lender.

In the case where your ABN is registered for less than 2 years (6 months in your case) then I would look at St George and ANZ as the top lenders in this space. St George brought out a "thing" in January this year whereby as an exception they will look at newly self employed applicants and work off projected income.

ANZ is also fantastic in this space - both lenders will have a very pragmatic approach.

 

I think after all the views here, St. George seems like the best bet at the moment.

 

Yep we've had a similar situation recently.

We signed up with their portfolio loan product years ago.

All of the sub loans for each IP property we fixed at reasonable rates with the exception of the primary loan which was variable (relatively small around 20% LVR).

We've been happy with St George Portfolio product until last year when they decided they no longer wanted customers on their Portfolio Loan product.....and they started NOT passing on RBA cuts to portfolio customers....... their variable rate is now no longer competitive with other investor rates being offered by other banks.

We called to ask what they could do.......only to be told that because we live/work overseas they would NOT be able to "re-consider" our variable rate as our income was in $USA dollars.

(Keep in mind we've lived in New York for 15 years.....so this was all signed up many many years ago and we lived overseas when they were happy for us to sign up with them back then).

We asked to move the primary loan from variable to fixed as St Georges fixed rate for Portfolio is currently better than variable......only to be told you cant fix the primary loan (never came up in the many years we've moved other sub loans from fixed to variable etc)

We asked to split the primary loan into 2 - one of the features for Portfolio Loan only to be told.....because we live/work overseas they would NOT be able to "re-consider" our loan as for splitting as our income was in $USA dollars.

I appreciate this may not sway your original decision.......but if you are ever thinking of working overseas (or maybe you have investment income from shares overseas)...... St George Bank may not be the best choice for you and you should consider other lenders.

 

Say for example I transfer $300k from the offset account into the actual home loan account and then try to redraw it for investing, will St. George do an assessment or serviceability check at that time or is it just similar to taking money out of the offset account?

 

Assessment = No

Major tax issues = Yes

 

This a strategy that I have a private ruling on for a client. I call it loan shuffling and it can be done without tax implications, other than less deductions to the saving of interest.
Strategy: Borrow Against the Main Residence for an Investment Loan (Shuffling Loans Around) Strategy: Borrow Against the Main Residence for an Investment Loan

 

What I'm thinking is to take out all the equity out and keep the money in offset accounts. But next year, when I have to settle the new block and build a house, I take the money out from the offset, deposit in the actual home loan account and then redraw it to pay for the block and build a house.

Will this work?

 

It might if you do it correctly.get some tax advice and see my tax tip 1

 

Can someone please confirm that for westpac and St. George below is correct in regards to broker commission?

Upfront commission @ 0.715% (Incl. GST)

Trail commission @ 0.165% (Incl. GST)

Clawback @ 100% first 12 months

Clawback @ 50% 12 - 18 months

No Clawback after 18 months

Upfront commission charges effective 1st January 2019:

Initial upfront calculated on loan amount net of offset & redraw as at settlement date +3 days

 

Commissions will vary from aggregator goup to group. numbers see approx correct.

 

NOt too worried about numbers but does clawback time frame looks correct?

 

It's not ALL just about the money or the interest rates, what about loan portability or flexibility, will the financier cross-X or have all money clause, what you wish to do in the future?
Sometimes too many people will be stuck on such trivial things instead of looking at a larger picture instead. Will they revalue IPs, in more or less general terms, look at larger % rents, or will they place such limitations?
I would rather pay a larger interest % yet be able to access more cash an the end of the day, have buffers in place, flexibility in negotiating, have larger rent % calculators (in my situation).
So it is impossible to advise as your circumstances are known only to you and you need to know what direction you wish to take, what do you want to achieve the lowest rate, or some temporary cash, or be able to borrow more in the future, etc.....?

 

Totally agree with all of this. All of these things have been thought of in our case. I was looking for a lender with good medico policy and I think most people have said that STG, WBC and ANZ all are good. So all I wanted to know was that from these which one is better.

 

Any idea on the claw back periods? To they sound right?

 

Which bank did you move to?

 

Suncorp

 

Is St. George having some issues with their valuation ordering system?

 

I had one ordered yesterday with no issues.