Bankwest the best???

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From: Fedora Tarsitano


Bankwest Gold Home Loan Variable IO loan has been recommended to me by a broker. Intro rate 1st yr at 5.57% reverting to rate 6.07% after that (or equivalent with any rises.)
$600 start up with $8 monthly fee.100% offset.
Is this the best around and what are there services like??
Thanks in advance.

 

[Sim]

Reply: 1
From: Sim' Hampel


I have some BankWest loans... the fees are nasty, but the rates seem to be pretty good for a loan with such good options... most 100% offset loans are more expensive it seems.

Service is reasonable - certainly not excellent, but better than most in my experience.

Their best service is pre-settlement - turn around time is pretty good compared to most of the majors right now.

Internet banking is spartan but functional - does the job.

Most importantly for me, they are happy to work with trusts.

Certainly not perfect, but I'm happy with my loans so far.

 

[Lotana]

Reply: 2
From: Lotana Von Amor


Flexing the maths muscle...
Generally, fixed fees give best results for larger loans. For instance if loan principal is $150K the ongoing fees of $8/m would be equivalent to .064%. Spreading the up-front fee of $600 over 3 years would add another .133%. In total the fees would add up to almost .2%, giving you effective rate of 6.27%. If however the principal is $450K, the post-honeymoon effective rate will be 6.13%.

Regards,

Lotana

 

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Reply: 2.1
From: Fedora Tarsitano


The best thing I ever did was come across this forum. Thank you Sim and Lotana!