 Home loan price war?
Bankwest are planning an attack on the mortgage market, suggesting it is ready to announce a new loan product which has an cap on interest levels until late 2012.
Bankwest, which is owned by Commonwealth Bank, will offer a product that has a discounted standard variable interest rate, capped at 7.5 per cent through until late 2012.
A BankWest spokesman confirmed yesterday that CBA was pleased with it's "highly innovative product".
This reinforces "our commitment to challenging the market by rolling out new and innovative products," the spokesman said. "We will obviously remain aggressively competitive."
This new loan will guarantee
that the loan interest rate cannot rise above 7.5 per cent, despite what happens to variable rates. The bank will offer a discounted standard variable rate of 5.4 per cent, 30 basis points lower than BankWest's current interest rate of 5.7per cent.
Current rates with the big four are between 5.74 and 5.81 per cent.
As speculation rises that interest rates will be increased sooner rather than later, Bankwest will be hoping this new loan product brings customers to them.
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