Current interest rates - Bankwest Rate tracker 6.75%

[thedon]

Hi

Just looking at refinancing a couple of loans I have approx for 500k, Bankwest have a product called rate tracker at 6.75% which is guaranteed to be 1% below the big 4. $350 app fee for each loan, after 2 years reverts to standard variable. Based on my existing rate of around 7.6% i think it is a good deal.
I rang a broker who does some work for me but he can't match it.
Anyone else recently refinanced? Does this sound like a good deal?

Thank you

The Don

 

[Nathan]

I have some CBA no app fee, no monthly fees, free bank account, and is currently variable @ 6.96% from memory...

the rest are with stgeorge on pro packs.

 

[Monaro]

Hi

Just looking at refinancing a couple of loans I have approx for 500k, Bankwest have a product called rate tracker at 6.75% which is guaranteed to be 1% below the big 4. $350 app fee for each loan, after 2 years reverts to standard variable. Based on my existing rate of around 7.6% i think it is a good deal.
I rang a broker who does some work for me but he can't match it.
Anyone else recently refinanced? Does this sound like a good deal?

Thank you

The Don

Its ok in the short term, but after 2 years it reverts to a higher rate, whereas CBA, Westpac etc have products that give you discounts for the life of the loan. Ie, my CBA loan, with a discount of 0.7% is 7.04% at the moment. So in the first 2 years, you may save 0.29%, but after that, you'll be paying 0.56% more.

 

[Wiseguy]

IIRC theres no early repayment fee (except discharge fee) on the tracker so i guess you could always refi once the 2 yr period is over.

Also try asking Bankwest to waive the apps fees.

 

[Peter_Tersteeg]

It is a honeymoon rate. The break even point is about 3 years from the loan start date, after that most other bank products are cheaper.

Actually there is a deferred establishment fee to keep you there for the first 4 (maybe 5) years. There's also a discharge fee. When it was first launched they didn't have the deferred establishment fee but they introduced it soon after.

It's not a bad product, but it's not a great product either. There are definitely better products for investment purposes.