Bankwest rate tracker vs 4 banks Proff packages

Hi All,

Was just doing some of my own research of the current proffesional packages.

They all seem too offer the same benefits ie discounted rate, fee free credit card, other product disconts,etc all for an annual package fee of between $340-$395 with rates ranging from 5.04%(NAB) to 5.21% (ANZ) and everyone else in between.

My question is why would someone who wanted 100% offset and regardless if it was owner occupier or investment purpose not consider the bankwest rate tracker? Or even Hertitage at 4.82% with $250 annual fee.

Lets start with bankwest rate tracker. Current rate is 4.85% (tracks the average of the big 4 and discount of 0.90%) then reverts to lite product or something at 5.58%.

However, even though the offset expires after the 3 year period, it only cost $350 to break the loan for discharge no early repayment or break costs, and application fee $595, no montly or annuel fees. By my calcs on a $300k loan over 3 years compared with say a CBA at 5.14% you would save almost $3000.. allowing for the break costs,etc

So am I missing something? what are the downsides of that strategy besides hassle of switching lender or to different product after 3 years? which lets face it most people from what I have read refinance every 3 years or so anyway and products and rates are always changeing anyway.

Is the bankwest offset account a big let down vs the big 4? And why not heritage? (though i have heard only P & I for their 100% offset acct so that would be a negative).

be great to hear the formites thoughts and feedback.

rgds,

ker
 
Have the bankwest rAte tracker for 7 months, no problems. No offset though. Currently working through splitting this loan and setting up offset, fees of $15/month for offset here.
 
I think it really depend on what you want out of a loan and a lender, as well as who will service you.

I personally have a brillant loan with INGDirect for our PPOR. We are going with Bank of queensland for our IP, but have looked at and compared loans in many places. There are some packages that I would prefer - but either the lender will not service me,they have a LONG turnaround period atm, or I have had bad experiences with them (or known someone who has). It may be that someone it already an existing customer and sees a benefit from staying with a particular lender or any number of other reasons.

Personally I always wonder why the BIG4 get so much business at all with all the other smaller lenders out there who are more competitive and often have better loan products with less fees. I can only assume that those people have their reasons and that the 'security' of these large banks has something to do with it. Also you can never underestimate 'customer service'. I have considered st george because of the customer service we receive from our local branch - although I have heard stories from others about bad service from that particular bank too.
 
Tell us a bit about the deal - e.g. self employed or PAYG, LVR, loan purpose, trust or personal etc, etc. This makes a bit difference.

BankWest's credit in my experience is totally inflexible - you either tick the box or you don't.

For that reason, I don't think they suit a lot of investors.
 
One reason many mortgage brokers consider the Rate Tracker with the $15/mth offset as an alternative to the Professional Packages is for all the reasons you mention.

As well as the concerns Stuart cited over BW policy there is one single reason why many brokers disregard this for clients with multiple properties and that is all around how the servicing calculator works. Unlike most lenders who take 70-80% of proven rental income BW looks at their own yield estimates for entire States and applies those. ie for NSW the yield is 3.25% I have found for some clients who need to have at least a sensible rental income to be included to get them over the line the BW calc fails them.

As you know it is not all in the rate and features of a loan product, more and more it is important to look at your individual situation, LVR, bank servicing calcs and importantly bank policy.

Hope this helps

Jane

PS well done on the detailed comparitive research, without the fancy up to date calcs that brokers have I imagine it would of taken quite a while to come up with all the bank details and costs.
 
As has already been mentioned, without the soft data, this is a ball of string question...........and any detailed response could be construed as malpractice :)

The product per se compares well, BUT has many a "nervous tick' that isnt suitable for many.

The 3 % floor rate is one issue thats a bit on the nose if you are one of those that believes the economy is totally stuffed.

Also, moving to another lender at the end of the 3 years might not be so easy if property values havent moved and you bought with a 90 % lend etc etc etc

ta
rolf
 
Thanks everyone for your thoughts and feedback to date... Its helpful to consider. I share this account with my partner so if our posts are different or we sign off different you know why. I think I will get him to sign up on is own :)


on another note my partner said to me that the service levels of banks and turn around times he heard were shocking to the point where some people were losing properties they made offers on, or banks not even being able to settle within the 6 week window.

Can any of the brokers here comment on how bad it is and who to avoid right now for quick conditional approvals or any lender who might miss a 6 week settlement window?

thanks again this forum is great.


rgds,

Ker
 
Rams cant do it, CBA may, Westpac best bet if your broker is in their A+ pile, STG bank seem to be all over the place

Bankwest is doable but slow, NAB homeside are ok.

Much depends on the Loan to value ratio as well, if its a high lend, then some lenders may not fit

ta

rolf
 
Pretty much what Rolf said, but I don't find the settlement is the issue, just the loan approval. Once the loan is approved we can get settlement ok, but approval is taking a while for most banks...
 
I spoke to a guy at a Bank West stand today.. he rackons he can get unconditional approval in 7 days as he works direct with the back office.
Is this really possible?

The offer seems very attractive... but I've already been sitting on NAB to get me approvals for 17 days now. Thats a pretty good rate of 5.09% with $10 fee per month for offset.

Its probably not too late to cancel / backout and jump to the BankWest Rate Tracker.. but if its going to take another 2-3 weeks, forget it..

Whats the average time for BankWest to get unconditional approval?
 
If you can qualify, the Heritage option is by far one of the cheapest on the market at the moment, but given your timeframe, it probably won't work for you as the demand has reduced their turn around times to almost unworkable. They are also very difficult to qualify for in lots of ways.

Nothing wrong with the BankWest product if you're willing to refinance in 3 years. Turnaround times aren't good, I'm finding they're around 2 weeks. I generally don't have any issues with their policies.
 
I've found that Homeside/NAB are well behind 3-4 weeks, Bank West not too bad but I seriously get sick of them not ready my notes and having to explain even the most basic things twice. CBA are fine ( I can't believe I'm saying that), just had a formal in 7 working days including full valuation. aMP are very smooth but probably not the best products for most.
I must admit I don't do a heap with Westpac but had one a couple of weeks ago that took over 3 weeks (their mistake in not ordering val twice), really frustrating.
ING are bragging with their turnaround times but I haven't lodged one there for a while. Has no offset available but for someone with a PPOR with offset this may not be a big issue.
 
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