If you’re interested in the Bankwest Equaliser loan, the first thing you’ll want to hear about is probably the interest rate. So how does it work?
Well, the interest rate on this loan takes the average of the standard variable interest rates from ANZ, NAB and Westpac (calculated twice a month) and gives owner occupiers a 1.51% p.a. discount on that rate for the first 3 years. So for example, if the 3 major banks' average standard variable rate dropped from 5.26% p.a. down to 5.01% p.a., when the Bankwest Equaliser discount is next calculated, its rate would drop from 3.75% p.a. to 3.50% p.a. Keep in mind that because the discount is calculated twice a month, there might be a delay before your rate drops.
Another thing to keep in mind is that 2.50% p.a. is the minimum rate you’ll pay, even if the average of the three major banks' rates, minus the discount, drops below that.
This introductory offer is available for the first 3 years of your loan. After that, the rate reverts to the Bankwest standard variable rate less a discount of 1.10% p.a. So currently, that's 4.32% p.a. revert rate and 4.20% p.a. comparison rate.
Aside from that, the Bankwest Equaliser also packs some great features. You’ll be able to make unlimited free extra repayments, redraw that extra cash online for free and choose to make your repayments weekly, fortnightly or monthly.
This loan is available to new owner occupiers borrowing at least $200,000, up to 80% of the property’s value.
Who it's good for:
With a variable rate and plenty of money-saving features, this loan is perfect for owner-occupiers who want to make sure they’re consistently getting a competitive deal.
Keep the revert rate in mind, and also remember that this is available to new Bankwest owner-occupiers only, so if you’re refinancing an existing Bankwest home loan, you’re out of luck.