St George Bank: Real Estate Loan

[TheLoanMan]

From the way you explain the situation, the loan would have been for 5 years, and should have been repaid or renegotiated prior to the expiry dated. The increased interest rate is called the default rate. This should be clearly stated on your letter of offer when the loan was taken out.

St George should have sent you a letter prior to the loan expiring, advising that the loan is falling due and needs to be renegotiated. If you received the letter and did nothing about it, then there is not much you can do. If you did not receive the letter, I would contact St George and ask them why you did not receive the letter, and if they state that they did send the letter, ask them for a copy of it so you can confirm the address it was posted to. If they did not send a letter I would insist upon a refund of interest.

[misterbean]

Thanks for the warning Lloyd!
Seems it hasn't taken Westpac long to whip them into the usurious habits of the Evil 4 banks.
How on earth did this Government ever conclude that a WestPac takeover of St.George would not adversely affect competition and actually ALLOW this take-over.

[NGE]

I had a 5 year interest only loan on some commercial property with St George Bank. At the end of the five years even though I did not owe them one cent in interest, they have increased my interest rate from 7.5% to 13.05% on the entire loan amount while they consider whether they will renew my loan or not! Seeing they want new valuations, I have asked them to have my properties valued again and they have said that all the valuers are busy! The interest rate they are charging is just plain and simple price gouging.
Stay away from St George Bank, they are not good with people and the only money they are good with is their own.

NGE Member: Lloydm