This product specification is the property of St.George Bank. It is for the use of St.George Bank employees, contractors and accredited brokers only. It is not to be distributed to customers.

Relocation is a loan feature designed to assist customers with the purchase of a new property for the purpose of owner occupation or investment when the sale of their existing property is still to occur. The Relocation Loan is only available at the Standard Variable rate.
The Relocation Loan has 2 options.
Option 1 - With End Loan - caters for customers who want to relocate their property but have not yet sold their existing property and who will have a residual loan secured by a mortgage on their new property once the sale of their existing property occurs. Refer to Relocation
With End Loan Product Specification.
Option 2 - With No End Loan - caters for borrowers who want to relocate their property but have not yet sold their existing property. This option caters for customers who will not have a residual loan once the sale of their existing property occurs. This loan allows for the capitalisation of interest on the entire loan amount for the term of the loan
(ie until the sale of the existing property is effected).
Repayment of the total amount owing is due upon sale of the existing property or at the end of the loan term, which ever occurs sooner.
Targeted towards subsequent home buyers who wish to purchase a new property for the purpose of owner occupation or investment before they have sold their existing property.
Key Benefits
• The interest rate may be lower than standard ‘bridging finance’ rates available elsewhere
• Borrowers are not required to make any repayments whilst waiting to sell their existing home
• Borrowers may be given greater bargaining powers when purchasing their new home
• For contract Building Loans, borrowers are able to live in their existing home while the new home is being constructed
• Assists ‘asset rich and cash poor’ customers
Cross sell opportunity
Whilst the borrowers will not require a home loan facility after the sale of their existing property, they may wish to consider the advantages of St.George Bank’s (also referred to as ‘Bank’) Portfolio Loan facility (at the end of the relocation period).
The Relocation With No End Loan is available on the
Standard Variable Rate only, to new and existing borrowers.
The Relocation Loan is AVAILABLE for:
• Owner Occupiers
• Investors
• Contract Building Loans
• New Loans
• 1st Mortgage
• Land to Build (Building must be completed within 6 months)
A Relocation Loan is NOT AVAILABLE for:
• 2nd Mortgages
• Increase (Further) Loans
• Vacant Land
• Flexible Choice
• Extended settlement loans
• Owner Builder Loans
• Family Pledge
Multiple Draw Downs
An advance may be used for the payment of a deposit,
(sales) contract and mortgage stamp duty or other associated purchase costs provided the following criteria are met:
• Only one advance is to be made for these amounts
• Security must be in place against the existing property
Building Loans
Building loans are allowed provided they are being undertaken via a Contract builder (owner builders excluded). There is a maximum of 6 months to build the home from the date of the first advance, then a maximum of 6 months from final draw down to sell the existing home, a total relocation period of 12 months. Eg if the building is completed within 4 months, then the maximum relocation term will be 10 months.
Switching
Not available during Relocation period.
Splitting
Not available during Relocation period.
Increase (Further) Loan
Not available during Relocation period.
Capital Gains Tax Implications for Investors
Any estimated CGT liability arising from the sale
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of property must be included in the selling costs for investment Relocation Loan Calculations.
For any investment property purchased after 19th
September, 1985, there may be Capital Gains Tax (CGT) implications associated with the sale of the investment property.
All borrowers must provide a statement from their accountant as to the estimated amount of CGT they will be liable for in relation to the sale of the investment property involved in the Relocation Loan, based on the property valuation obtained by the Bank.
NO minimum repayments required during the relocation period.
The interest charges are capitalised over the term of the loan and the full repayment of principal plus capitalised interest and all fees and charges is required on the sale of the existing property.
Not applicable.
Minimum: - $10,000
Maximum: - $1,000,000*
Note:
* Any requests for loans in excess of $1,000,000 are to be referred to Mortgage Central before proceeding.
Not applicable.
Principal reductions are allowed at any stage during the relocation period. These repayments are made ‘over the counter’ at any St.George branch or via Internet or Phone
Banking. (Processing fee may apply).
During the relocation period (ie until the existing property is sold) the Standard Variable Interest Rate is applicable.
Refer to the interest rates and fees section of the website for current interest rates.
6 months for Non-Building Loans
12 months for Building Loans
Note:
Capitalisation of interest occurs from the first advance.
Relocation Period - Non-Building Loans
The sale and settlement of the borrower’s existing property must be completed on or before 6 months after the date of the first advance of the loan.
Relocation Period - Building Loans
If the loan is a contract builder building loan, the borrower must ensure that the building is completed within 6 months of the date of first advance. The sale and settlement of the borrower’s existing property must be completed on or before 6 months after the date of the final progress payment. The maximum Relocation Period is therefore 12 months in total.
Note:
Owner builder loans are excluded.
Not available.
Review of the account will take place at 6 months - the end of the Relocation period.
For Building Loans, the account will be reviewed at 6 months - the end of the Building period and 12 months - the end of the Relocation period.
As the Bank will rely on the sale of the existing property for the clearance of debt (hence maximum LVR of 80%), no serviceability assessment is required.
Important:
As interest and fees will be capitalising for the entire loan term on the entire loan amount, lenders should strongly advise applicants should seek their own independent financial advice before entering into any contract to purchase or to borrow.
The maximum LVR is not to exceed 80% at the time of projected Peak Debt.
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The Peak Debt is to be calculated on the outstanding loan balance on the existing property PLUS funds required to purchase the new property (less any funds the borrower puts towards the purchase) PLUS the capitalisation of interest for 6 months on the total debt.
Note:
In the case of building loans this capitalisation of interest will be for 12 months.
This represents the total outstanding debt against total value of security held.
Existing Property
Valuation is to be carried out on the existing property.
Property to be Purchased
Except where not permitted, the purchase price, excluding the cost of chattels (furnishings), in a contract of sale may be used to determine the Security Value (SV) of new residential security property (including approved land and house packages). Where purchase price method is not permitted, a short form (standard) valuation report is to be requested.
Current credit policy applies.
A Relocation With No End Loan will have at least two securities, except there is sufficient equity in the existing security to meet LVR criteria.
St.George is to hold a registered first mortgage security over all security properties. Any existing mortgages on security properties are to be discharged and the loans refinanced.
All properties will be held as security upon settlement of the new purchase. The existing securities will be released when the properties are sold. Where there are more than two security properties, the existing properties do not need to be released at the same time.
Contract of Sale
For all loans except building loans, provide evidence that the existing property is listed for sale with a real estate agent (or satisfactory evidence that the property is on the market by private sale), prior to providing any form of approval under this product.
LMI is not available for this product. The loan must qualify without LMI and in accordance with the above
LVR requirements.
Reference
Refer to the ‘Loan Accounts Charges for specific services and accounts’ brochure for current fees and charges.
Establishment Fee
Establishment fee applies irrespective of any special deals on standard variable rate loan.
The fee includes the Bank security fees for one new security property and any number of existing securities and the valuations for all security properties.
Additional security fees must be collected for each additional security property, after the first security property.
Settlement Processing Fee
This fee is automatically deducted from the loan at settlement.
Administration Fee
Charged monthly.
Building Loans
Progress Payment administration fee - this fee is automatically deducted from the loan at settlement.
Not available.
Statements are generated every six months. The statement cycle will be six months from the month of advance of the loan and every six months thereafter.
Investment loans have a statement cycle that coincides with the end of the Financial Year.
These are the only statement frequencies available.
Borrowers cannot nominate any other frequency.
Customers with CCC-regulated loans can nominate one of the borrowers to receive statements and notices on behalf of the other borrowers providing they all agree.
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Interim Statements / Replacement Statements
These are available for mailing out on request. A fee is applicable.
Not allowed.
Discharge of Mortgage fee applies.
This fee is payable to the Bank. It is in addition to the fee for the Registration of the Discharge of Mortgage, payable to the Land Titles office.
End Procedure Relocation with no End Loan Product Specification
June 2010
This document is owned and updated by St.George Bank Intermediary Distribution and is subject to change. Terms and Conditions and fees and charges apply and are available on request.
All applications are subject to St.George Bank’s prevailing credit criteria. St.George Bank - A Division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714. STGW0012 07/10 Page 5 of 5