All Topics / Finance / St George No Deposit Loan – Fixed interest rates

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  • Profile photo of sydneymesydneyme
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    @sydneyme
    Join Date: 2008
    Post Count: 6

    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

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213

    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://structuring.com.au/
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    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of jsawtelljsawtell
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    @jsawtell
    Join Date: 2007
    Post Count: 57

    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.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of C2C2
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    @c2
    Join Date: 2002
    Post Count: 518

    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.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of sydneymesydneyme
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    @sydneyme
    Join Date: 2008
    Post Count: 6

    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

    Profile photo of sydneymesydneyme
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    @sydneyme
    Join Date: 2008
    Post Count: 6

    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

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of jsawtelljsawtell
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    @jsawtell
    Join Date: 2007
    Post Count: 57

    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.

    Profile photo of C2C2
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    @c2
    Join Date: 2002
    Post Count: 518

    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.

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    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://structuring.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Aust wide) http://propertytaxbook.com.au/

    Profile photo of C2C2
    Participant
    @c2
    Join Date: 2002
    Post Count: 518

    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.

    Profile photo of CentralChoiceCentralChoice
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    @centralchoice
    Join Date: 2008
    Post Count: 64

    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.

    Profile photo of PropertyPaulPropertyPaul
    Member
    @propertypaul
    Join Date: 2009
    Post Count: 25

    Hi,

    Just wondering what the best 100% LVR Investment Loans were if not with St George?

    Thanks,

    PP

    Profile photo of CentralChoiceCentralChoice
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    @centralchoice
    Join Date: 2008
    Post Count: 64

    RAMS will still give you 100%. But their approval times are horrendous.

    The 100% loan I would have to say is a dying beast.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of PropertyPaulPropertyPaul
    Member
    @propertypaul
    Join Date: 2009
    Post Count: 25

    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

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    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 | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

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