The major bank subsidiary has announced significant changes to its home loan rates as it looks to “balance the needs of customers, shareholders and regulators”.
In a note to brokers late on Friday, Bankwest announced that for customers with existing interest-only loans, the following changes will take effect in October 2017:
• 0.25 per cent p.a. increase for interest-only investor home loans; and
• 0.35 per cent p.a. increase for interest-only owner-occupier home loans.
Effective Tuesday, 25 July 2017, the following changes will apply to applications for new lending:
• 0.15 per cent p.a. reduction for new principal and interest investor lending on the Complete Variable and Premium Select Home Loans;
• 0.12 per cent p.a. reduction in the standard rate for principal and interest owner-occupier lending on the Premium Select Home Loan to match the existing acquisition special; and
• 0.05 per cent p.a. increase for new interest-only owner-occupier lending on the Complete Variable and Premium Select Home Loans.
Bankwest said that customers with existing interest-only lending will receive correspondence from the lender closer to the effective date, and that construction loans paying interest-only until fully drawn (IOUFD) will not be impacted by this change.
“Bankwest is mindful of its broader obligations as a responsible lender and aims to balance the
needs of customers, shareholders and regulators when reviewing products and pricing,” the bank said.
“These changes are being made in line with regulatory guidance and customers can consider moving to our lower principal and interest rates so they pay less interest over the life of their home loan.”
[Related: CBA 'has work to do' on APRA benchmark]
James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.
He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.
He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.
James holds a BA (Hons) in English Literature and an MA in Journalism.
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