St. George Basic Product Offers

Banks love charging fees. Making profit off its balance sheet comes at a cost but fees are money-for-jam. Imagine having a million customers paying $395 per annum! Hmm.

Whether it be the CBA Wealth Package, ANZ Breakfree, Westpac Premier Advantage or NAB Choice, they all pretty much offer the same deal … free offset accounts and a free Platinum Credit Card included.

It used to be the case that having a ‘package’ also got you a better rate, but this isn’t necessarily true anymore.

The standout ‘basic product’ is St George now offering a variable rate of 2.74%. No establishment fee, no ongoing fees, free redraw and a rate that’s cheaper than what you can get under their Advantage product.

This rate is when the LVR is less than 60%, otherwise the rate is 2.99% @ 80%

A basic-style product can be a better option if;

  1. Your home is unlikely going to become an investment property in the long term (in which case an offset is absolutely imperative)
  2. We calculate that the efficiency provided by an offset account is nowhere near the cost of $395 per annum
  3. You’re not wanting to ‘fix’ a portion of your debt, and
  4. You’re not fussed about getting another credit card (perhaps you have one that you’ve used for ages)

St George Bank will give you a $2,000 refinance rebate for switching to them (this was normally reserved for packaged products only but for a short time it applies to the basic product too!)

Anyway, there are still many borrowers out there without professional representation with home loans that unfortunately start with a 3 so maybe spread the word that they really don’t need to tip the bank every month, they’re doing just fine.