BankWest recently introduced the BankWest Rate Tracker Home Loan which boasts an impressive 1 per cent off their standard variable rate. After applying the discount, the Rate Tracker's standard variable rate is 8.29% (at the time of writing this article). Given the hype in the industry about this new product, the Rate Detective team has taken the time to review this product in detail.
While this rate is certainly attractive, there are a couple of things in the fine print that need pointing out. We look at the good and bad aspects about this product.
If your home loans amount is above $100,000 you are in good shape on the rate, because the BankWest Rate Tracker is better than any of the major banks on rates. By way of example, at the Commonwealth to obtain a discount of 0.7 per cent you need a loans amount greater than $250,000.
Other good aspects about this home loan are that there are no ongoing fees or charges and you can borrow up to 95% of the value of the property. The product also has a redraw facility so if you are lucky enough to have made a few extra payments along the way you can access these funds if needed.
The offer is only valid for home loans above $100,000 and while is it not widely advertised, the BankWest Rate Tracker reverts back to the Bank West's Lite Home Loan Rate after the first two years, which is still a competitive discount compared to the other major banks, particularly for loan sizes less than $1 million.
The other feature that this loan is missing is an offset account, but since a redraw facility is available not having an offset feature is not the end of the world.
Finally, there is a $795 application fee, which is not fully refundable. This rate is slightly higher than other banks, because of the fact there are no ongoing monthly or annual package fees, which is generally the case with discounted packages.
At Rate Detective, we are of the view that this product is a very nice package, particularly if your home loan amount is less than 1 million. BankWest are certainly making a play at the major banks in the home loan market in Australia, but we have heard rumours from BankWest that this package may only be available for a limited time.
Check our "Compare Home Loans" section to find the latest rate for BankWest Rate Tracker Home Loan.