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
Perth, WA (PRWEB) September 23, 2009
Customer champion Bankwest has introduced, on Wednesday 9 September, further competition to the mortgage market by introducing its new home loan product, the Capped Rate Home Loan - the only one of its kind in the Australian mortgage market.
The innovative home loan offers customers the benefits of a variable home loan rate that is comparable to the current market average, with the added security of a cap until 10 November 2012.
The Capped Rate Home Loan has a market leading 5.40 per cent p.a.variable rate (comparison rate of 5.56% p.a. *1), and a capped rate of 7.50% p.a. (comparison rate of 7.65% p.a. *2) until 10 November 2012.
This means that during the capped period, home loan rates can decrease, but cannot exceed the capped rate.
Bankwest's Head of Mortgages Dean Gillespie said the new offering underlined Bankwest's ongoing commitment and determination to provide Australians with more choice by increasing competition in the mortgage market.
"This unique and innovative product is further proof that Bankwest is paying attention to what Australians want from a home loan product and delivering," Mr Gillespie said.
Recent Bankwest / Mortgage and Finance Association Research found that 75 per cent of people think that home loan interest rates have hit a low point.
"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 added.
He said the Bankwest/MFAA research also revealed that less than 60 per cent of people have a clear preference when it comes to fixed or variable home loans.
"Many people who don't have a definitive preference when it comes to fixed or variable loans would benefit from a home loan that offers the advantages of both, Mr Gillespie said.
"Many Australians shop around for a home loan without a specific preference for variable or fixed. This new hybrid product offers customers the opportunity to have both."
*1 The comparison rate above is based on a secured loan of $150,000 over a loan term of 25 years. The comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.
*2 The comparison rate above is based on a secured loan of $150,000 over a loan term of 25 years. The comparison rate is trueonly for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in adifferent comparison rate.
Lending criteria, fees and charges apply. Terms and conditions apply and are available on request. Rates subject to change. Bank of Western Australia Ltd ABN 22 050 494 454 AFSL 236872.
About the Product
Minimum loan size $100,000
Bankwest is a wholly owned subsidiary of the Commonwealth Bank (Group). Bankwest is a full service bank which originated in Western Australia in 1895 and services more than 900,000 customers. Bankwest promotes a range of products using cost-effective direct and third party distribution channels, including 24-hour telephone and internet services and mortgage brokers. In WA, Bankwest is a market leader with about one quarter of all bank advances and deposits and an extensive network of branches. Standard & Poor's short-term credit rating for Bankwest is "A-1+" and "AA" for the long term, providing customers with investment grade security.