+ Wide range of home loan products
+ Options to bundle other financial products with Package deals
+ Discounted interest rates available
x Fees attached to some loans
x Some customers will have higher rates
If you have been in a home loan agreement for a long time, or if you find that the time is nearly up on a variable loan product, you may decide that refinancing a home loan is an enticing option. Selecting this course of action can make it easier to manage monthly payments and to take advantage of attractive interest rates. However, venturing down this path requires careful consideration.
This is St.George’s standard home loan with no add-ons or special features. The loan comes with a variable interest rate, meaning that borrowers’ monthly, fortnightly or weekly repayments will fluctuate along with the current standard interest rate.
With this loan, the interest rate is locked in for the first year. At the end of this period, customers have the option of establishing a new fixed rate or switching to a variable rate. A fixed rate protects the borrower from interest rate rises during the fixed period.
For the first two years of this loan, the interest rate that the borrower pays will remain stable. After this, it can be re-fixed or will revert to a variable rate. Customers have the option of making repayments monthly, fortnightly or weekly.
Customers choosing this loan will receive a set interest rate for the first three years, after which it will switch over to a variable rate, fluctuating along with the current standard rate. Customers also have the option of re-fixing the interest at the current rate.
For four years, the interest rate on this loan will not change. This means that the borrower’s repayments will be the same each period. At the end of four years, customers can choose between re-fixing the interest rate and letting it turn variable.
This loan offers the longest fixed-rate period in St.George’s loan selection. The rate will be locked in for the first five years. After this introductory period, customers can re-fix the rate or allow it to convert to a variable rate that will change along with the current standard rate.
This loan features a variable interest rate that fluctuates with the current standard rate. Customers also gain access to an offset account to help them save money on interest. Borrowers are free to redraw from the amount repaid if they need to access extra money.
The St.George Standard Variable Low Doc loan, is designed for self-employed individuals or owners of small businesses. It enables borrowers who may not otherwise be able to obtain financing to get the funding they need. Borrowers can choose between fixed or variable interest rates, or a combination of the two.
This loan offers a flexible line of credit, meaning that borrowers may take out as little or as much money as they like up to their credit limit. Interest will only be charged on the amount that is borrowed. This loan is ideal for purchasing investment properties.
With this package deal, customers get discounted interest rates and fees for bundling several accounts at St.George. In addition to a home loan, borrowers also receive a credit card and a transaction account. Customers can choose a fixed or variable interest rate for the home loan.
St.George Bank recommend beginning a search for a home loan product online. This will enable you to harness the power of technology as they compare and contrast suitable loans and rates.
There are many reasons why you may want to refinance your existing loan, and as such there are a variety of different loan products available. Each of these is designed to suit a particular set of purposes and situations.
For example, some loans may provide you with additional flexibility regarding their payments; others may offer more fixed structures should you require this level of reliability. You may want credit cards linked to you loan, or to have the facility to redraw additional payments.
In order to further increase the levels of choice available, and to ensure that a wide range of circumstances is covered by the loan products on offer, St.George Bank provide refinancing packages to their customers.
These are financial bundles which offer extra features and facilities, including discounts on the loan itself, as well as on credit card, insurance and wealth products offered by St.George Bank.
Before submitting an application to St.George Bank, you will need to have first released yourself from any home loan agreements you are currently utilising. Very often this will require a fee to be paid.
Once this is submitted, the bank will issue a conditional approval. This will be followed by a valuation of the your home to ascertain the Loan to Value Ratio (LVR), which is the proportion of the property’s total value that you will be able to borrow.
There are a range of reasons people choose to refinance their home loan. This includes getting a better deal on their interest rate, and reducing their repayment term so they can pay off their mortgage faster. It can also help people who are struggling to make their mortgage payments on time by giving them a longer term loan with lower payments. Some people also choose to refinance to consolidate debts or tap into their equity in their home for other purchases.
Banks will generally allow you to borrow up to 80% of your home loan value when you refinance. This is based on your LVR (loan to value ratio).
The costs involved in refinancing a home often include an application fee, valuation fee, registration of mortgage fee and discharge fee. These fees can add up, but are normally recouped by switching to a loan with a lower interest rate.
The main benefit of refinancing your home loan is saving money over the course of your mortgage, which occurs through reduced interest repayments.
Refinancing can affect your credit score both positively and negatively. Initially, it may go down, because applying for your new loan counts as a credit enquiry. However, if it helps you make your repayments on time or pay off your mortgage faster, it will ultimately have a positive impact.
Refinancing your mortgage is a good idea if you’re unhappy with your current interest rate and have found a better deal, have a strong credit score and still have many years left on your current mortgage.
If you’re already satisfied with your interest rate, have a poor credit score, can’t easily recoup the costs involved or are in the final 5 to 10 years of your mortgage, refinancing might not be the best choice for you.