|
Lender Name |
ST GEORGE
BANK |
|
Product Name |
FAMILY
PLEDGE |
|
Product Type |
BASIC/
VARIABLE/FIXED |
|
Interest
Rates |
Latest
Interest
Rates
Compare
Other
Lenders |
|
Redraw
Facility |
As per
product
specifications |
|
Offset |
As per
product
specifications |
|
Fees |
Fees apply
as per
product
specifications:
Establishment
Fee $600
Additional
Valuations:$0
Valuers
travelling
allowance
payable by
customer.
Account
Keeping Fee
subject to
product
specifications
Limited
Guarantee
Fees
applicable
refer to
lender for
quote
Legal Fee
$100 per
security
Settlement/Lodgement
Fee:$ 100
per loan
(Fee
displayed as
Mortgage
Preparation
).
Additional
security fee
$100
Discharge
Settlement
Processing
Fee $100 |
|
LVR |
Owner
Occupied
Maximum
LVR95%
Investment
Maximum LVR
95%
Construction
Maximum LVR
95%
Refinancing
Maximum LVR
90%
Debt
consolidation
Maximum LVR
90%
Pledged
Security
Only one
property can
be used as
the pledged
security but
that
property can
be used for
more than
one loan.
As an
example,
parents with
two children
can use
their
property on
both of
their
children’s
loans.
Note -
Family
Pledge home
loans with
an LVR of
80% or less
(i.e. no LMI),
no longer
require
evidence of
5% genuine
savings. |
|
Repayment
Type |
As per
product
specifications. |
|
Repayment
Options |
As per
product
specifications. |
|
Repayment
Method |
As per
product
specifications. |
|
Extra
Repayments |
As per
product
specifications. |
|
Special
Offers |
The Family
Pledge
option is
available on
the
following
Home Loan
products:
1 Year
Introductory
Fixed Rate
home loan
Discount
Variable
Rate home
loan
Standard
Variable
Rate home
loan
Negotiated
Variable
Rate home
loans
(Advantage
Package
Interest
Rate
Discounts)
NOT
PORTFOLIO
Fixed Rate
home loans
Basic Home
Loan
It is not
available on
any other
loan type.
Existing
loans -
Family
Pledge is
not
available
for existing
loans. |
|
Term |
As per
product
specifications. |
|
Loan Size |
As per
product
specifications. |
|
Mortgage
Insurance |
Not
applicable
if LVR is
80% or
below.
Family
Pledge can
be used to
reduce the
LMI premium. |
|
Acceptable
Income |
As per
standard
policy.
The normal
Home Loan
approval
process
will
continue to
be followed
for these
loans. |
|
Product
Change |
As per
product
specifications |
|
Statements |
As per
product
specifications |
|
Portability |
As per
product
specifications |
|
Split Loan
Facility |
As per
product
specifications. |
|
Special
Notes |
Releasing
the
guarantee
The Bank
will agree
to release
of the
limited
supported
guarantee
(and related
Mortgage)
when:
The LVR,
based on the
Security
Value of the
borrower’s
property and
Total
Security
Exposure
(TSE) does
not require
LMI (in
terms of the
prevailing
policy at
the time of
the
request). An
updated
valuation is
required to
determine
the Security
Value.
If LMI is
still
required,
the borrower
does have
the option
of paying
the
LMI premium
based on the
current LVR.
Standard
Partial
Discharge
fees apply
The
guarantee
can be
released at
the
borrower’s
or
guarantor’s
request. The
borrower or
guarantor
may request
a
revaluation
of the
borrower’s
property at
any time,
subject to
the payment
of the
requisite
valuation
fee.
Providing
the LVR is
under the
LMI
threshold or
the LMI
premium is
paid, the
guarantee
and the
mortgage
that
supports it
will be
released.
NOTE: The
release of
the security
property
will not be
an event
which is
initiated by
the bank, or
which occurs
automatically
or at a
predefined
time during
the loan
term. It
will occur
at the
borrower’s
or
guarantor’s
request, and
will be
subject to
the bank’s
consent at
that time. |
|
Target
Market |
The Family
Pledge
option
allows
family
members (the
term ‘family
member
refers to
parents,
grandparents
and
siblings)
with equity
in their own
property, to
help
customers
bridge the
deposit gap
and cover up
front
borrowing
expenses, by
providing a
limited
guarantee in
support of
our
customer’s
loan
application.
Our
customers
will be able
to maximise
the amount
they can
borrow
against
their own
security,
i.e. the
purchase
property,
with this
additional
limited
guarantee
from a
family
member.
Key Benefits
/ Target
Market
The benefits
for the
borrower
allows them
to maximize
the amount
they can
borrow up
to 100% of
the Purchase
Price plus
costs such
as Stamp
Duty and
Legal Fees
Helps to
reduce or
avoid LMI
premium
The benefits
to the
Guarantor
allows the
guarantor to
nominate a
specific
amount the
guarantee is
limited to
rather than
a
traditional
open
guarantee
for the
entire loan
amount.
The
guarantor
can ask to
release the
guarantee at
any time
(standard
credit
policy in
regard to
Lever's
apply).
They will
also benefit
in that the
bank will
not take
action
against them
until action
against the
borrower has
been
unsuccessful
as defined
in the Code
of Banking
Practice |
