Bankwest adjusts home loan interest rates before EOFY
Bankwest has announced a number of changes to its home loan interest rates - mainly rate increases across interest-only loans, but with some good news for borrowers making principal and interest repayments.
Rates on Bankwest’s Fixed Rate Home Loan went up by as much as 0.34%, across terms 1-5 years for both owner occupiers and investors.
According to Mozo’s home loan repayments calculator, this means that over a two year fixed term, a borrower with a $500,000, 25 year home loan would pay an extra $3,060 in interest more than they might have before the 0.34% rate increase.
Fixed Home Loan rate changes
Investment, low deposit and interest-only lending have all been points of concern for APRA in 2017, as Australian regulatory bodies attempt to navigate a super competitive property market and growing housing affordability issues.
The changes from Bankwest are just the most recent in a long list of interest rate adjustments from lenders right across the market, responding to tightened regulations around ‘high risk’ lending.
Bankwest’s general manager of products and pricing, Paul Vivian, said the changes aimed, “to maintain the appropriate balance across Bankwest’s home loan portfolio in line with regulatory guidance.”
Bankwest also restricted LVRs on its interest-only home loan products to a maximum of 80%, meaning homebuyers need to save at least a 20% deposit before they can secure a loan.
On the other hand, rates on the Complete Fixed Home Loan, while no longer available with interest only repayments, saw rate drops of up to 0.31% on principal and interest loans. According to a Bankwest statement, this is the most popular of its home loan products and its rates remain very competitive in the market.
On a 25 year, $500,000 loan this 0.31% decrease stands to save a borrower as much as $2,280 over a 3 year fixed term.
Complete Fixed Home Loan rate decreases
Refinancers will also be glad to hear that Bankwest, like its parent the Commonwealth Bank, will once again accept refinancing applications from investors looking for a principal and interest home loan.
If you’re looking to enter the property market or refinance an existing loan, make sure you compare home loans first to find the best value offer around. The easiest way to do it? Head over to our home loan search tool and plug in your loan requirements.