hi all,
I noticed recently St George's fixed interest rates for No Deposit Loan is just exactly the same as the Standard Loan
Obviously nobody is going to lock-in to a fixed rate now knowing that more RBA cuts are on it's way…
But I wonder if historically, the fixed rates are much higher for No Deposit Loan compared to a Standard Loan..
I'm fairly new to property investing, infact I'm just about to buy my first home…
I intend to take a variable rate then lock-in to a fixed rate when the cash drops to around 3.0%, obviously I'm just worried say 12 months down the line St George won't reduce the fixed rates for those who took on a No Deposit loan..
I hope someone in the forum would be able to give some insight..
thanks
Off the top of my head I think the St G fixed rates have been higher on the 100% loans than the normal loans.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi,
we have a 100% loan with SGB on our first property (bought 4+ years ago). I think the variable is .5 high than standard. Best if you give them a call to confirm.
Before you do apply I would make sure that you have absolutely every bit of documentation you can think of as you will find them probably the toughest 100% lender in the market.
They will want landlords references, rent receipts, 6 months credit and personal loan statements etc etc and then could stil say NO if they feel like it.
Richard Taylor | Australia's leading private lender
StG,
Is all about who you know and deal with. I had my first approval done over the phone and only had to fax a copy of work contract.
Don’t want to disagree with you but makes no difference who you now at SGB,
There 100% lending is done by their Specialised Mortgage Services and the documentation requirements are standard due to the fact that the loans are not mortgage insured and securitised but kept by the Bank on their balance sheet.
Before starting my own business here in Oz in 1994 I was SGB regional lending manager and I assure you I can’t slip deals throught without all required documentation.
There are better products out there as the Dragon is not the easiest to deal with.
Richard Taylor | Australia's leading private lender
thank you jsawtell and Terryw for sharng your experiences..
Qlds007 wrote:Before you do apply I would make sure that you have absolutely every bit of documentation you can think of as you will find them probably the toughest 100% lender in the market.They will want landlords references, rent receipts, 6 months credit and personal loan statements etc etc and then could stil say NO if they feel like it.
thanks for the head's up, yes I have prepared the docs as requested by SGB, wil be faxing it tommorow…. I'm currently on a 97K salary, been with the current employer for around 10 months… I probably have a shot on this, I'm aiming for a 500K-property
thank you jsawtell and Terryw for sharng your experiences..
Qlds007 wrote:Before you do apply I would make sure that you have absolutely every bit of documentation you can think of as you will find them probably the toughest 100% lender in the market.They will want landlords references, rent receipts, 6 months credit and personal loan statements etc etc and then could stil say NO if they feel like it.
thanks for the head's up, yes I have prepared the docs as requested by SGB, wil be faxing it tommorow…. I'm currently on a 97K salary, been with the current employer for around 10 months… I probably have a shot on this, I'm aiming for a 500K-property
Sydney,
With the limited information to hand and subject to having satisfactory previous employment history you should be fine.
Although as mentioned earlier you can do better in respect of interest and fees.
Richard Taylor | Australia's leading private lender
I agree with Richard.
SGB are very hard to deal with, especially if you want a 90%+ loan. When we bought 2nd property, SGB said it would be no problems, and had pre-approval. Then after signing contract they rejected me. I am told it was their Mortgage insurer. I ended up with a NAB loan, very few questions asked and papers with 5 days.
Qlds007,
Richard I understand that may have been your situation but how do you explain my situation. It was done as I said over the phone and fax of work contract. To make matters even more interesting. StG made a mistake and a few hours before settlement discovered a 25K short fall in the numbers. There was no way I could transfer 25K to them in a few hours and the head honcho at the bank said StG would cover the money until I could transfer the funds in the next couple of days. This was a refinancing deal involving a few properties and 800K.
This is why I believe it is who you deal with.
C2
I guess i have dealt with them on many many ocassions and now what the Bank is really like.
I now a couple of the lending managers in their Specialist Mortgage Area in Kogarah and certainly would never place my settlement on their word.
Good luck to you must have been a day when they were away.
Richard Taylor | Australia's leading private lender
C2 wrote:Qlds007,Richard I understand that may have been your situation but how do you explain my situation. It was done as I said over the phone and fax of work contract. To make matters even more interesting. StG made a mistake and a few hours before settlement discovered a 25K short fall in the numbers. There was no way I could transfer 25K to them in a few hours and the head honcho at the bank said StG would cover the money until I could transfer the funds in the next couple of days. This was a refinancing deal involving a few properties and 800K.
This is why I believe it is who you deal with.
C2 you must have had a LVR or less that 80%. Anything over would have been out of the manager's hands as they need mortgage insurance approval – even though St G self insure it still has to go to another department. There is no give on a 100% loan due to the high risk.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terry,
Can't recall what the LVR was at the time but I do know St.G was chasing business at the time and were very eager to get customers from other banks. Might also find that the Darwin branch might be set up a little different to others and fast tracking and bosses discretion plays a big role.
The key thing behind St George's 100% product is you need to show that you are able to periodically save half of the monthly repayments over a period of 3 months.
ie if your repayments are $1500 per month, they need evidence of you contributing at least $750 in some form of regular payment that will cease (ie rent over the course of 3 months, personal loans that will be cleared, etc)
That is where most people get tripped up.
Hi,
Just wondering what the best 100% LVR Investment Loans were if not with St George?
Thanks,
PP
RAMS will still give you 100%. But their approval times are horrendous.
The 100% loan I would have to say is a dying beast.
All depends how much equity you have in your other properties.
Couple of other 100% investment lenders still in the market but it is horses for course.
Richard Taylor | Australia's leading private lender
Hi Richard,
Interested in a couple of your comments:
"Although as mentioned earlier you can do better in respect of interest and fees."
– What other 100% lenders are there?"All depends how much equity you have in your other properties. "
– What effect does this have?Thanks,
Paul
Hi Paul
The lenders that currently offer 100% investment loans including SGB only do so where you can demonstrate 20% equity in another residential property.
In all cases the Mortgage Insurance is is dedcuted from the loan so whilst it maybe a 100% loan you still need to have sufficient to cover your acqusition costs and LMI to hand in cash or equity.
Richard Taylor | Australia's leading private lender
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