- What is the St.George Interest Subsidy Home Loan?
- Target market
- What are the key benefits of the St.George Interest Subsidy Home Loan?
- Interest Rates, Fees and Charges
- Availability
- Are my customers eligible for the St.George Interest Subsidy Home Loan?
What is the St.George Interest Subsidy Home Loan?
The St.George Interest Subsidy Home Loan allows a third party such as a builder to subsidise a home loan interest rate. This reduced home loan rate may then be promoted to assist a property purchase.
It is a specialised home loan product sold through introducers who have entered into an Interest Subsidy agreement with the bank.
Target market
The St.George Interest Subsidy Home Loan suits customers who want a very low interest rate for an initial period, but also require a fully featured home loan product. Examples of the type of customer to look for are:
- First home buyers with a minimal deposit who require an interest rate advantage during the initial period of their loan when their cash flow is most tested.
- Customers who want a lower rate fixed for the initial period of their loan to safeguard against potential interest rate rises (fixed rate only).
- Customers who want access to a low introductory rate but require the flexibility
of the variable rate (variable rate only).
| What are the key benefits of the St.George Interest Subsidy Home Loan? | |
| Lower Interest Rates | Lower interest rates subsidised by the builder for an agreed period from the start of the loan term on top of the already discounted Introductory Fixed and Variable rate products. |
| Automatic Switch | Automatic switch to the St.George standard home loan rates after the interest subsidy period. |
| Initial loan size | $50,000 - $1,000,000 (depending on affordability) |
| Repayment Type / Loan Term | Principal & Interest 1 - 30 yrs Interest Only 1 - 15 yrs |
| Lenders Mortgage Insurance (LMI) | LMI is required for loans greater than 80% LVR. |
| Redraw | Available (on principal and interest variable rate loans only) |
| Interest Offset | Available (on principal and interest, loans only) |
| Repayment Flexibility | Principal & Interest - weekly, fortnightly or monthly. Interest Only - monthly only |
| Additional repayments |
Unlimited additional repayments allowed on the variable rate loan. Additional repayments of up to $10,000 per 12 month period allowed on the fixed rate loan. |
| Wide range of allowable security types |
The St.George Interest Subsidy Home Loan is available for:
|
| Fee Free savings account | If loan repayments are automatically deducted from a St.George Freedom account, that account is exempt from account service fees and most withdrawal fees. |
| Interest Rates, Fees and Charges | ||||||
| Interest rate* | Rates are quoted in the customer's loan offer as a discount to the
Bank's standard fixed or variable rates. However, the Bank calculates
this by taking the current Introductory Fixed or Variable rates as
the starting point before these are further discounted by the Interest
Subsidy Rate (provided the subsidy amount is paid a minimum of 3 days
prior to settlement).
For example: if a builder wanted to pay a 2% interest subsidy for the first 12 months on an Interest Subsidy Variable Rate Home Loan the rate would be calculated as the discount variable rate of 5.89% less the interest subsidy rate of 2% to give a customer rate of 3.89%. This would be quoted in a customer's loan offer document as Standard Variable Rate of 7.07% less discount 3.18% to give the customer rate of 3.89%. |
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| Establishment Fee | $600, including legals, valuation on one property and a fee free savings account (when nominated for the loan repayment) | |||||
| Monthly Administration Fee | $8 | |||||
| *Interest rates correct as at 26 March 2003 | ||||||
| Availability - The St.George Interest Subsidy Home Loan can be used to finance: | |
| House and Land package (single drawdown only) |  |
| Established homes | |
| Strata units and townhouses | |
| Land loans* | |
Are my customers eligible for the St.George Interest Subsidy Home Loan
The St.George Interest Subsidy Home Loan provides an additional competitive advantage for you to promote a financial package for the sale of apartments, spec homes or vacant land.
In order to be eligible to offer your customers the St.George Interest
Subsidy Home Loan you would need to enter into an Interest Subsidy Agreement
with St.George.
So contact us now and provide yet another option to your customers!!
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