Commercial disclosure
St.George Bank
In 1937, St.George was founded in Sydney’s southern suburbs. Since then, it has grown to become one of Australia’s largest banks. In December 2008, St.George merged with Westpac Banking Corporation and is now known as St.George Bank. St.George Bank offers its customers a wide range of home loan products, in addition to savings and transaction accounts, personal and car loans, credit cards and business banking.
Pros and cons
- Large variety of home loans
- Package deals available to bundle other financial products together
- Comprehensive customer service offering
- Some loans offer discounted interest rates for new customers or package deals
- Fees and charges apply to loans
- Higher rates for some riskier customers
Owner occupied products interest rates
| Loan type | Principal & Interest rate | Interest Only |
|---|---|---|
Basic Home Loan (Min Deposit 40%) | 2.14% p.a. 2.16% p.a. Comparison rate | 3.09% p.a. 3.11% p.a. Comparison rate |
Basic Home Loan (Min Deposit 20%) | 2.19% p.a. 2.21% p.a. Comparison rate | 3.14% p.a. 3.16% p.a. Comparison rate |
2 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 2.24% p.a. 3.41% p.a. Comparison rate | 3.59% p.a. 4.11% p.a. Comparison rate |
1 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 2.19% p.a. 3.48% p.a. Comparison rate | 3.59% p.a. 4.12% p.a. Comparison rate |
Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 3.14% p.a. 3.57% p.a. Comparison rate | 3.73% p.a. 4.14% p.a. Comparison rate |
3 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 2.69% p.a. 3.45% p.a. Comparison rate | 3.79% p.a. 4.15% p.a. Comparison rate |
2 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 2.29% p.a. 3.46% p.a. Comparison rate | 3.64% p.a. 4.16% p.a. Comparison rate |
1 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 2.24% p.a. 3.41% p.a. Comparison rate | 3.64% p.a. 4.17% p.a. Comparison rate |
Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 3.19% p.a. 3.62% p.a. Comparison rate | 3.78% p.a. 4.19% p.a. Comparison rate |
3 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 2.74% p.a. 3.5% p.a. Comparison rate | 3.84% p.a. 4.2% p.a. Comparison rate |
Fixed Rate Home Loan (with Advantage Package) (Min Deposit 5%) | 3.24% p.a. 3.67% p.a. Comparison rate | 3.83% p.a. 4.24% p.a. Comparison rate |
4 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 2.89% p.a. 3.48% p.a. Comparison rate | 4.04% p.a. 4.24% p.a. Comparison rate |
5 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 3.09% p.a. 3.54% p.a. Comparison rate | 4.04% p.a. 4.26% p.a. Comparison rate |
4 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 2.94% p.a. 3.53% p.a. Comparison rate | 4.09% p.a. 4.29% p.a. Comparison rate |
5 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 3.14% p.a. 3.59% p.a. Comparison rate | 4.09% p.a. 4.31% p.a. Comparison rate |
5 Year Fixed Rate Home Loan (Min Deposit 40%) | 3.24% p.a. 4.14% p.a. Comparison rate | 4.19% p.a. 4.86% p.a. Comparison rate |
5 Year Fixed Rate Home Loan (Min Deposit 20%) | 3.29% p.a. 4.18% p.a. Comparison rate | 4.24% p.a. 4.91% p.a. Comparison rate |
3 Year Fixed Rate Home Loan (Min Deposit 40%) | 2.84% p.a. 4.21% p.a. Comparison rate | 3.94% p.a. 4.92% p.a. Comparison rate |
4 Year Fixed Rate Home Loan (Min Deposit 40%) | 3.04% p.a. 4.15% p.a. Comparison rate | 4.19% p.a. 4.92% p.a. Comparison rate |
2 Year Fixed Rate Home Loan (Min Deposit 40%) | 2.39% p.a. 4.26% p.a. Comparison rate | 3.74% p.a. 4.97% p.a. Comparison rate |
3 Year Fixed Rate Home Loan (Min Deposit 20%) | 2.89% p.a. 4.26% p.a. Comparison rate | 3.99% p.a. 4.97% p.a. Comparison rate |
4 Year Fixed Rate Home Loan (Min Deposit 20%) | 3.09% p.a. 4.2% p.a. Comparison rate | 4.24% p.a. 4.97% p.a. Comparison rate |
2 Year Fixed Rate Home Loan (Min Deposit 20%) | 2.44% p.a. 4.31% p.a. Comparison rate | 3.79% p.a. 5.02% p.a. Comparison rate |
1 Year Fixed Rate Home Loan (Min Deposit 40%) | 2.34% p.a. 4.43% p.a. Comparison rate | 3.74% p.a. 5.09% p.a. Comparison rate |
1 Year Fixed Rate Home Loan (Min Deposit 20%) | 2.39% p.a. 4.48% p.a. Comparison rate | 3.79% p.a. 5.14% p.a. Comparison rate |
Standard Variable Rate Home Loan (Min Deposit 40%) | 4.46% p.a. 4.63% p.a. Comparison rate | 5.05% p.a. 5.22% p.a. Comparison rate |
Standard Variable Rate Home Loan (Min Deposit 20%) | 4.51% p.a. 4.68% p.a. Comparison rate | 5.1% p.a. 5.27% p.a. Comparison rate |
Standard Variable Rate Home Loan (Min Deposit 5%) | 4.56% p.a. 4.73% p.a. Comparison rate | 5.15% p.a. 5.32% p.a. Comparison rate |
Basic Home Loan (Min Deposit 5%) | 2.24% p.a. 2.26% p.a. Comparison rate | n/a |
2 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 5%) | 2.34% p.a. 3.5% p.a. Comparison rate | n/a |
3 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 5%) | 2.79% p.a. 3.55% p.a. Comparison rate | n/a |
1 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 5%) | 2.29% p.a. 3.57% p.a. Comparison rate | n/a |
4 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 5%) | 2.99% p.a. 3.58% p.a. Comparison rate | n/a |
5 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 5%) | 3.19% p.a. 3.64% p.a. Comparison rate | n/a |
5 Year Fixed Rate Home Loan (Min Deposit 5%) | 3.34% p.a. 4.23% p.a. Comparison rate | n/a |
4 Year Fixed Rate Home Loan (Min Deposit 5%) | 3.14% p.a. 4.25% p.a. Comparison rate | n/a |
3 Year Fixed Rate Home Loan (Min Deposit 5%) | 2.94% p.a. 4.31% p.a. Comparison rate | n/a |
2 Year Fixed Rate Home Loan (Min Deposit 5%) | 2.49% p.a. 4.36% p.a. Comparison rate | n/a |
1 Year Fixed Rate Home Loan (Min Deposit 5%) | 2.44% p.a. 4.53% p.a. Comparison rate | n/a |
Investment purpose products interest rates
| Loan type | Principal & Interest rate | Interest Only |
|---|---|---|
Basic Home Loan (Min Deposit 40%) | 2.44% p.a. 2.46% p.a. Comparison rate | 2.64% p.a. 2.66% p.a. Comparison rate |
Basic Home Loan (Min Deposit 20%) | 2.49% p.a. 2.51% p.a. Comparison rate | 2.69% p.a. 2.71% p.a. Comparison rate |
1 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 10%) | 2.59% p.a. 4.09% p.a. Comparison rate | 2.79% p.a. 3.8% p.a. Comparison rate |
3 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 2.89% p.a. 3.9% p.a. Comparison rate | 3.09% p.a. 4.16% p.a. Comparison rate |
2 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 2.59% p.a. 3.91% p.a. Comparison rate | 2.79% p.a. 4.18% p.a. Comparison rate |
4 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 3.19% p.a. 3.94% p.a. Comparison rate | 3.39% p.a. 4.19% p.a. Comparison rate |
5 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 3.29% p.a. 3.94% p.a. Comparison rate | 3.49% p.a. 4.19% p.a. Comparison rate |
3 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 2.94% p.a. 3.95% p.a. Comparison rate | 3.14% p.a. 4.21% p.a. Comparison rate |
2 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 2.64% p.a. 3.96% p.a. Comparison rate | 2.84% p.a. 4.23% p.a. Comparison rate |
4 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 3.24% p.a. 3.99% p.a. Comparison rate | 3.44% p.a. 4.24% p.a. Comparison rate |
5 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 3.34% p.a. 3.99% p.a. Comparison rate | 3.54% p.a. 4.24% p.a. Comparison rate |
3 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 10%) | 2.99% p.a. 4% p.a. Comparison rate | 3.19% p.a. 4.26% p.a. Comparison rate |
1 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 2.49% p.a. 4% p.a. Comparison rate | 2.69% p.a. 4.27% p.a. Comparison rate |
2 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 10%) | 2.69% p.a. 4.01% p.a. Comparison rate | 2.89% p.a. 4.27% p.a. Comparison rate |
4 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 10%) | 3.29% p.a. 4.04% p.a. Comparison rate | 3.49% p.a. 4.29% p.a. Comparison rate |
5 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 10%) | 3.39% p.a. 4.04% p.a. Comparison rate | 3.59% p.a. 4.29% p.a. Comparison rate |
1 Year Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 2.54% p.a. 4.05% p.a. Comparison rate | 2.74% p.a. 4.32% p.a. Comparison rate |
Fixed Rate Home Loan (with Advantage Package) (Min Deposit 40%) | 3.7% p.a. 4.11% p.a. Comparison rate | 3.99% p.a. 4.39% p.a. Comparison rate |
Fixed Rate Home Loan (with Advantage Package) (Min Deposit 20%) | 3.75% p.a. 4.16% p.a. Comparison rate | 4.04% p.a. 4.44% p.a. Comparison rate |
Fixed Rate Home Loan (with Advantage Package) (Min Deposit 10%) | 3.8% p.a. 4.2% p.a. Comparison rate | 4.09% p.a. 4.49% p.a. Comparison rate |
5 Year Fixed Rate Home Loan (Min Deposit 40%) | 3.44% p.a. 4.54% p.a. Comparison rate | 3.64% p.a. 4.78% p.a. Comparison rate |
5 Year Fixed Rate Home Loan (Min Deposit 20%) | 3.49% p.a. 4.59% p.a. Comparison rate | 3.69% p.a. 4.83% p.a. Comparison rate |
4 Year Fixed Rate Home Loan (Min Deposit 40%) | 3.34% p.a. 4.61% p.a. Comparison rate | 3.54% p.a. 4.87% p.a. Comparison rate |
5 Year Fixed Rate Home Loan (Min Deposit 10%) | 3.54% p.a. 4.64% p.a. Comparison rate | 3.74% p.a. 4.88% p.a. Comparison rate |
3 Year Fixed Rate Home Loan (Min Deposit 40%) | 3.04% p.a. 4.66% p.a. Comparison rate | 3.24% p.a. 4.92% p.a. Comparison rate |
4 Year Fixed Rate Home Loan (Min Deposit 20%) | 3.39% p.a. 4.66% p.a. Comparison rate | 3.59% p.a. 4.92% p.a. Comparison rate |
4 Year Fixed Rate Home Loan (Min Deposit 10%) | 3.44% p.a. 4.71% p.a. Comparison rate | 3.64% p.a. 4.96% p.a. Comparison rate |
3 Year Fixed Rate Home Loan (Min Deposit 20%) | 3.09% p.a. 4.71% p.a. Comparison rate | 3.29% p.a. 4.97% p.a. Comparison rate |
3 Year Fixed Rate Home Loan (Min Deposit 10%) | 3.14% p.a. 4.76% p.a. Comparison rate | 3.34% p.a. 5.02% p.a. Comparison rate |
2 Year Fixed Rate Home Loan (Min Deposit 20%) | 2.79% p.a. 4.82% p.a. Comparison rate | 2.99% p.a. 5.08% p.a. Comparison rate |
2 Year Fixed Rate Home Loan (Min Deposit 10%) | 2.84% p.a. 4.84% p.a. Comparison rate | 3.04% p.a. 5.13% p.a. Comparison rate |
1 Year Fixed Rate Home Loan (Min Deposit 40%) | 2.64% p.a. 4.96% p.a. Comparison rate | 2.84% p.a. 5.24% p.a. Comparison rate |
1 Year Fixed Rate Home Loan (Min Deposit 20%) | 2.69% p.a. 5.01% p.a. Comparison rate | 2.89% p.a. 5.28% p.a. Comparison rate |
2 Year Fixed Rate Home Loan (Min Deposit 40%) | 2.74% p.a. 4.77% p.a. Comparison rate | 2.94% p.a. 5.33% p.a. Comparison rate |
1 Year Fixed Rate Home Loan (Min Deposit 10%) | 2.74% p.a. 5.06% p.a. Comparison rate | 2.94% p.a. 5.33% p.a. Comparison rate |
Standard Variable Rate Home Loan (Min Deposit 40%) | 5.02% p.a. 5.19% p.a. Comparison rate | 5.31% p.a. 5.48% p.a. Comparison rate |
Standard Variable Rate Home Loan (Min Deposit 20%) | 5.07% p.a. 5.24% p.a. Comparison rate | 5.36% p.a. 5.53% p.a. Comparison rate |
Standard Variable Rate Home Loan (Min Deposit 10%) | 5.12% p.a. 5.29% p.a. Comparison rate | 5.41% p.a. 5.58% p.a. Comparison rate |
Basic Home Loan (Min Deposit 10%) | 2.54% p.a. 2.56% p.a. Comparison rate | n/a |
Home loan repayment calculator
Thinking about taking out a home loan with St.George Bank? Use our home loan calculator to see how much you’d have to repay under different borrowing scenarios. You can also see how St.George Bank home loans compare with other options.
Your estimated mortgage repayments
at interest rate 2.14%
Total interest payable
$0
Total loan repayments
$0
Contact a mortgage broker
St.George Bank homeloans are vailable through brokers who can help find the right loan and manage your application at no charge.
St.George Bank customer service
Home Loan customers can contact St. George Bank by phone, by popping into a branch, by submitting an online enquiry form or chatting to a customer support staff member via online chat.
✓ Customer service centre (phone)
✓ Mobile app
✓ Online banking
✓ Live Chat
✓ Branch
✓ Mobile banking staff
How to apply for a St George home loan
You can apply for a home loan from St.George by calling the bank, applying online, or visiting a branch.
Before applying for a home loan, it’s important to calculate how much you can realistically afford to borrow and comfortably repay in your current financial situation.
You will also need to provide documentation when applying for a home loan, including:
- Identification that includes the name and contact details of each borrower.
- Details of your current income and expenses.
- Records of any current assets or liabilities.
St.George home loans review
St.George is part of the Westpac banking group, and is able to offer a wide range of home loan options to different customers. Fixed and variable rate home loans are available for owner occupiers and investors, including first home buyers and refinancers. A building loan is also available for borrowers looking for money to help them build a property, and a portfolio loan offers a line of credit.
St.George’s lowest interest rates tend to be for owner occupiers with low LVRs, especially if they choose to package their home loan with other St.George Bank financial products. Variable and fixed interest rates are available, with the option to fix for up to five years. Split interest rates are also available on some St.George home loans.
Several of St.George Bank’s home loans charge upfront and ongoing fees, which could affect its overall cost. Some charge a monthly account keeping fee, while bundled home loan charge a higher annual package fee.
Extra repayments and redraws are available on St.George home loans. Full and partial offset accounts are also available with some mortgage options. And borrowers with low deposits may be able to get a guarantor in their family to help secure their loan with their own property.
Learn more about home loans
How to apply for a home loan pre-approval from St. George?
By applying for a home loan pre-approval, you can establish how much you can afford to borrow and look for houses within that pre-approved budget. Getting home loan pre-approval from St. George is a fairly simple process that can be completed within 15 minutes.
The first step in this process is completing a home loan application. Once that application is submitted, a home loan expert from St. George will contact you to understand your requirements and your current financial position. You could also directly contact a home loan expert at the bank by calling 13 33 30 or by visiting your nearest branch.
Once the application has been processed, the home loan expert will ask for some basic documentation to confirm your borrowing capacity. After this, you should be issued a home loan pre-approval, subject to certain conditions.
Based on your home loan pre-approval from St. George, you can then find a property and make an offer. Your home loan expert will arrange to have the property valued and may request for more documentation, taking your home loan application to the next step.
How do you compare home loans?
To compare home loans, you can assess the components of the loan against your own financial situation and other mortgages in the market.
Look at the interest rate, rate type (fixed or variable), loan fees, features, loan term, repayment frequency and more to find a home loan that fits with your budget and property goals.
Then, use comparison tools like comparison tables, calculators, or RateCity's Real Time RatingsTM to create a short list of home loan options, and decide which home loan best suits your needs.
How do I apply for a home improvement loan?
When you want to renovate your home, you may need to take out a loan to cover the costs. You could apply for a home improvement loan, which is a personal loan that you use to cover the costs of your home renovations. There is no difference between applying for this type of home improvement loan and applying for a standard personal loan. It would be best to check and compare the features, fees and details of the loan before applying.
Besides taking out a home improvement loan, you could also:
- Use the equity in your house: Equity is the difference between your property’s value and the amount you still owe on your home loan. You may be able to access this equity by refinancing your home loan and then using it to finance your home improvement. Speak with your lender or a mortgage broker about accessing your equity.
- Utilise the redraw facility of your home loan: Check whether the existing home loan has a redraw facility. A redraw facility allows you to access additional funds you’ve repaid into your home loan. Some lenders offer this on variable rate home loans but not on fixed. If this option is available to you, contact your lender to discuss how to access it.
- Apply for a construction loan: A construction loan is typically used when constructing a new property but can also be used as a home renovation loan. You may find that a construction loan is a suitable option as it enables you to draw funds as your renovation project progresses. You can compare construction home loans online or speak to a mortgage broker about taking out such a loan.
- Look into government grants: Check whether there are any government grants offered when you need the funds and whether you qualify. Initiatives like the HomeBuilder Grant were offered by the Federal Government for a limited period until April 2021. They could help fund your renovations either in full or just partially.
How can I apply for a first home buyers loan with Commonwealth Bank?
Getting a home loan requires planning and research. If you are considering a home loan with the Commonwealth Bank, you can find the information you need in the buying your first home section of the bank’s website.
You can see the steps you should take before applying for the loan and use the calculators to work out how much you can borrow, what your monthly repayments would be and the upfront costs you’d likely pay.
You can also book a time with a Commonwealth first home loan specialist by calling 13 2221.
CommBank publishes a property report that may help you understand the real estate market. The bank has also created a CommBank Property App that you can use to search for property. The link to download this app is available on the same webpage.
If you are eligible for the First Home Loan Deposit Scheme, CommBank will help you process your application. The scheme helps first home buyers to purchase a home with a low deposit. You can read details about this scheme here and speak with a CommBank home lending specialist to understand your options.
What is a home loan?
A home loan is a finance product that allows a home buyer to borrow a large sum of money from a lender for the purchase of a residential property. The home is then put up as "security" or "collateral" on the loan, giving the lender the right to repossess the property in the case that the borrower fails to repay their loan.
Once you take out a home loan, you'll need to repay the amount borrowed, plus interest, in regular instalments over a predetermined period of time.
The interest you're charged on each mortgage repayment is based on your remaining loan amount, also known as your loan principal. The rate at which interest is charged on your home loan principal is expressed as a percentage.
Different home loan products charge different interest rates and fees, and offer a range of different features to suit a variety of buyers’ needs.
How do I apply for Westpac’s first home buyer loan?
If you’re a first home buyer looking to apply for a home loan with Westpac, they offer an online home loan application. They suggest the application can be completed in about 20 minutes. Based on the information you provide, Westpac will advise you the amount you can borrow and the costs associated with any possible home loan.
You can use Westpac’s online mortgage calculators to estimate your borrowing power. You can also work out the time it might take to save up for the deposit, and the size of your home loan repayments.
When applying for a home loan with Westpac, you’re assigned a home finance manager who can address your concerns and provide information. The manager will also offer guidance on any government grants you may be eligible for.
How to apply for a pre-approval home loan from Bendigo Bank?
Applying for pre-approval on your home loan gives you confidence in your ability to secure finance while looking at potential new homes. You can get a free and personalised pre-approval home loan from Bendigo Bank in just a few minutes, without any credit checks or paperwork.
Bendigo Bank offers pre-approval for home loans that allow you to understand the home loan size you may be able to get before looking for a new home.
With the pre-approval, Bendigo Bank provides an estimate of your borrowing power. This figure incorporates stamp duty, lenders mortgage insurance (LMI) and any first home buyer incentives you may be eligible for. You may also qualify for the First Home Loan Deposit Scheme initiative, depending on your circumstances.
To apply for a pre-approval on your home loan from Bendigo Bank, all you need to do is fill in a smart form. You could also contact the bank directly on 1300 236 344.
Can first home buyers apply for an ING home loan?
First home buyers can apply for an ING home loan, but first, they need to select the most suitable home loan product and calculate the initial deposit on their home loan.
First-time buyers can also use ING’s online tool to estimate the amount they can borrow. ING offers home loan applicants a free property report to look up property value estimates.
First home loan applicants struggling to understand the terms used may consider looking up ING’s first home buyer guide. Once the home buyer is ready to apply for the loan, they can complete an online application or call ING at 1800 100 258 during regular business hours.
When does Commonwealth Bank charge an early exit fee?
When you take out a fixed interest home loan with the Commonwealth Bank, you’re able to lock the interest for a particular period. If the rates change during this period, your repayments remain unchanged. If you break the loan during the fixed interest period, you’ll have to pay the Commonwealth Bank home loan early exit fee and an administrative fee.
The Early Repayment Adjustment (ERA) and Administrative fees are applicable in the following instances:
- If you switch your loan from fixed interest to variable rate
- When you apply for a top-up home loan
- If you repay over and above the annual threshold limit, which is $10,000 per year during the fixed interest period
- When you prepay the entire outstanding loan balance before the end of the fixed interest duration.
The fee calculation depends on the interest rates, the amount you’ve repaid and the loan size. You can contact the lender to understand more about what you may have to pay.
Why does Westpac charge an early termination fee for home loans?
The Westpac home loan early termination fee or break cost is applicable if you have a fixed rate home loan and repay part of or the whole outstanding amount before the fixed period ends. If you’re switching between products before the fixed period ends, you’ll pay a switching break cost and an administrative fee.
The Westpac home loan early termination fee may not apply if you repay an amount below the prepayment threshold. The prepayment threshold is the amount Westpac allows you to repay during the fixed period outside your regular repayments.
Westpac charges this fee because when you take out a home loan, the bank borrows the funds with wholesale rates available to banks and lenders. Westpac will then work out your interest rate based on you making regular repayments for a fixed period. If you repay before this period ends, the lender may incur a loss if there is any change in the wholesale rate of interest.
Cash or mortgage – which is more suitable to buy an investment property?
Deciding whether to buy an investment property with cash or a mortgage is a matter or personal choice and will often depend on your financial situation. Using cash may seem logical if you have the money in reserve and it can allow you to later use the equity in your home. However, there may be other factors to think about, such as whether there are other debts to pay down and whether it will tie up all of your spare cash. Again, it’s a personal choice and may be worth seeking personal advice.
A mortgage is a popular option for people who don’t have enough cash in the bank to pay for an investment property. Sometimes when you take out a mortgage you can offset your loan interest against the rental income you may earn. The rental income can also help to pay down the loan.
When do mortgage payments start after settlement?
Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.
Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.
Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.
How do you find cheap home loans?
With so many interest rate options and repayment types available, finding the cheapest home loan may depend on the type of loan you choose.
Whether you’re looking for an owner-occupier or investor loan, with interest-only or principal and interest repayments, on a fixed or variable interest rate, the cheapest home loan rate available may vary greatly.
One way to find the cheapest option for you is to narrow down your search and compare the options that best suit your individual requirements. RateCity’s home loan comparison tables can help you get started on your search and take the hassle out of shopping around.
How do you determine which home loan rates/products I’m shown?
When you check your home loan rate, you’ll supply some basic information about your current loan, including the amount owing on your mortgage and your current interest rate.
We’ll compare this information to the home loan options in the RateCity database and show you which home loan products you may be eligible to apply for.
Can I take a personal loan after a home loan?
Are you struggling to pay the deposit for your dream home? A personal loan can help you pay the deposit. The question that may arise in your mind is can I take a home loan after a personal loan, or can you take a personal loan at the same time as a home loan, as it is. The answer is that, yes, provided you can meet the general eligibility criteria for both a personal loan and a home loan, your application should be approved. Those eligibility criteria may include:
- Higher-income to show repayment capability for both the loans
- Clear credit history with no delays in bill payments or defaults on debts
- Zero or minimal current outstanding debt
- Some amount of savings
- Proven rent history will be positively perceived by the lenders
A personal loan after or during a home loan may impact serviceability, however, as the numbers can seriously add up. Every loan you avail of increases your monthly installments and the amount you use to repay the personal loan will be considered to lower the money available for the repayment of your home loan.
As to whether you can get a personal loan after your home loan, the answer is a very likely "yes", though it does come with a caveat: as long as you can show sufficient income to repay both the loans on time, you should be able to get that personal loan approved. A personal loan can also help to improve your credit score showing financial discipline and responsibility, which may benefit you with more favorable terms for your home loan.
