Founded in 1895 as the Agricultural Bank of Western Australia, BankWest was bought by the Commonwealth Bank of Australia (CBA) in 2008, putting it in the category of major banks. BankWest's successful relationships with mortgage brokers have enabled it to work with home loan customers across Australia. Although part of CBA, BankWest has its own lending products, pricing and policies.
BankWest offers fixed and variable rate home loans with similar terms for owner-occupiers and investors. There are package options for both loan types. On all loans, BankWest offers:
- LMI when borrowing over 80% LVR
- Options to pay interest only up to 5 years
- Flexible payments, weekly, fortnightly or monthly
- Loan terms up to 30 years
- Redraw facility
Product offerings
- Variable Rate Home Loan. A basic home loan for owner-occupiers and investors. Features include the option of a 100% offset account, a redraw facility and the ability to borrow up to 90% LVR for principal and interest repayment terms.
- Variable Home Loan Package. You can have multiple 100% offset accounts and a redraw facility with this product. Loans are from $200,000 and you can borrow up to 80% of property value for new loans principal and interest (investors 90% LVR).
- Fixed Rate Home Loan. Loans are from $20,000, and you can lock in your interest rate from 1 to 5 years. Borrow up to 80% LVR (investors 90% LVR). A 40% offset account is available. Redraws are over-the-counter only.
- Complete Fixed Home Loan Package. As with the Fixed Rate home loan, you can lock in your interest rate from 1 to 5 years. Loans are from $200,000, and you can borrow up to 80% LVR (for investors limit is 90% LVR). You can also add up to nine 40% offset accounts.
Record on rate cuts
BankWest passed on the RBA rate cuts to customers throughout 2019 and in March 2020. There were no cuts to variable home loan rates following the November 2020 RBA rate cuts. However, the bank introduced new, lower-rate fixed loans.
Eligibility
To apply for a BankWest home loan, you must satisfy various requirements.
- Be at least 18 years old
- Provide two forms of ID
- Provide your financial details including income, expenses, assets and liabilities
- Be a citizen or permanent resident
- Apply as an individual, family trust or non-trading company
- Meet Bankwest lending criteria.
Pros and cons
Pros
- Customer service flexibility.
- The bank has Home Lending Specialists available over the phone or by appointment at a branch as well as a Mobile Lending Manager who can visit you where you are.
- Can also apply online
- Fast loan approvals
- Investor loans
- Refinancing with cashback
- Lower interest rates for larger deposits
- Works with mortgage brokers
- Approves loans for large properties
- First home buyers with low deposits accepted
- Offers high LVR loans, possibly up to 98% of the property value (with LMI)
- Accepts 100% of allowance income
- Rental payments acceptable in lieu of genuine savings
- LMI fee discounts for first home buyers
- Comprehensive credit reporting for all customers
Cons
- Difficult for complex loans outside standard bank policy
- Not suitable for those with bad credit
- Self-employed borrowers need to prove income
- Tough credit scoring may lead to declines with no apparent reason
- Bonus, overtime and commission income are not taken in full (shaded)
