BankWest has withdrawn its Rate Tracker home loan from the broker channel, raising questions about the lender’s long-term commitment to third-party distribution.
A BankWest spokesperson told Mortgage Business that “unanticipated volumes” and the bank’s “limited funds with which to meet scaling demand for the product” prompted the action.
“The Rate Tracker product simply exceeded expectations,” the spokesperson said.
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Rate Tracker will still be available via the bank’s expanding retail network.
Rate Tracker represents around 40 per cent of business channelled through BankWest’s third-party distribution network.
Overall, the broker channel accounts for approximately 75 per cent of BankWest’s mortgage lending business.
Troy Phillips, director and co-founder of brokerage FirstPoint NB, said the move was likely to leave many brokers with “a sour taste in their mouths”.
“It does raise a whole lot of questions about BankWest’s commitment to the broker channel,” Mr Phillips said.
“BankWest is definitely focusing on their retail network right now. This could be a high risk strategy in the current environment – I think it would be wise to keep a foot in both channels.”
Alison Whittle, managing director of The Mortgage Detective, said BankWest’s move sent mixed signals to the broking industry.
“BankWest said they were very supportive of the broker channel yet they introduced a product [Rate Tracker] that’s not able to be distributed by brokers,” she said. “It’s another hit for the broker channel.”
But Jennifer Nielsen, chief executive of Loan Market Group, said the move simply reflected market conditions.
“The current market volatility is having a significant impact on all lenders,” Ms Nielsen said.
“Presumably, BankWest has chosen a certain path that they believe will provide them with their long-term viability.”
