Bankwest will withdraw one of its most popular mortgage products from the broker channel as well as its bank branches.
Applications for the discounted Tracker Ultra Home Loan, which was introduced in February 2009, will no longer be accepted from close of business Monday 12 October.
The product offered customers a rate that was 0.90 per cent p.a. lower than the average standard variable rate of the big four banks for the first three years.
Bankwest’s head of retail sales Mark Reid today told Mortgage Business the Rate Tracker Ultra Home Loan was always intended to be a short term product.
“It was such a great product that it simply wasn’t sustainable to keep it on the market. However, it is being replaced with the very attractive 12 month discount Shredder product.”
The Shredder Introductory Home Loan rate will remain at least one per cent below the average standard variable rate for the first 12 months.
Mr Reid said despite the bank’s decision to withdraw the Rate Tracker Ultra Home Loan from the market, the broker channel remained a significant distribution channel for Bankwest.
“I think you can see by our suite of four products that we are still firmly committed to the broker channel. No bank can offer the same suite of products that we can. [Our] capped product is the most innovative product on offer at the moment,” he said.
From close of business Monday 12 October the Bankwest product suite for both the broker channel and branches will include the Shredder Introductory Home Loan, Capped Rate Home Loan, Premium Home Loan and the Low Doc Home Loan.
“The Shredder will be targeted at first home buyers, while the capped home loan targets those who cannot decide whether to remain variable or fix their rates. It offers customers the benefits of a variable home loan with the protection of a capped rate until 2012,” Mr Reid said.
The bank’s Premium Home Loan is a professional package (offering 0.60 per cent p.a. discount off the standard variable rate for the life of the loan); the Low Doc loan is aimed at the self-employed who have little to no documentation.
“Customers can benefit from a discount of 0.50 per cent p.a. on the standard rate when borrowing less than 60 per cent of the property value. All up, we think our products cover the entire product range,” Mr Reid said.
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