Bank west New Loan

Hi All,

ANy of you familiar with Bank West's new capped loan? It works like a variable loan only is capped at a certain interest rate. I thought it was quite interesting. Anyone here on it? Feedback would be great. Thanks
 
It seems like a pretty good option for those that like fixed loans. You get variable at 5.65% now, and it can't go above 7.5% between now and November 2012.

Much better than the big banks 3 year fixed rates which are all circa 7%. At least with this you get the benefit of the variable rate (with only a .3% premium over most rates at the moment) and the certainty of a 3 year rate...
 
If you're worried about rates going above the cap, it's a good alternative to fixing. Hard to say if rates will go that high. They might, they might not. You can bet that BankWest has done their homework and figured out their profit.
 
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