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In a move that Bankwest believes will shake up competition in the mortgage market, Bankwest has today unveiled plans to introduce a new capped rate home loan.
The product, which will be officially launched tomorrow, has a 5.4 per cent per annum variable rate and a capped rate of 7.5 per cent per annum until 10 November 2012.
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What that means for borrowers is even if the standard variable rate exceeds the capped level during that period, the interest rate on the loan cannot go higher than 7.5 per cent.
The product will be available to brokers from Thursday and comes amid market expectations that interest rates will rise.
Bankwest’s head of mortgages Dean Gillespie said the new offering reinforced the bank’s commitment to provide Australians with more choice by increasing competition in the mortgage market.
“This product has been specifically designed to offer customers the opportunity to make the most of the current low interest rates, whilst the cap will provide peace of mind for when the rates inevitably start to rise,” Mr Gillespie said.
