Compare Bankwest Home Loans
Dominic Beattie
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- Although Bankwest is a subsidiary of CommBank, it offers its own home loan products and lending policies
- It is known in the market for its competitive interest rates and flexible lending solutions
- Its fixed home loan offers a unique option to link a 40% offset account during the fixed-term period
Bankwest has a long history in WA, starting out as the Agricultural Bank of Western Australia in 1895. It is now under the umbrella of Australia's largest bank, Commonwealth Bank Group, but Bankwest runs its own race with its products, pricing, and lending policies.
Previously a traditional bank with bricks and mortar branches, it transitioned to a fully digital bank in late 2024. In recent years, Bankwest home loans have seen wide take-up by borrowers throughout Australia with the vast majority of the bank's home loans originating through mortgage brokers.
Bankwest Home Loan Rates
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.19% p.a. | 6.58% p.a. | $3,059 | Principal & Interest | Variable | $395 | $350 | 60% | |||||||||||||
6.19% p.a. | 6.22% p.a. | $3,059 | Principal & Interest | Variable | $0 | $350 | 60% | |||||||||||||
6.24% p.a. | 6.27% p.a. | $3,075 | Principal & Interest | Variable | $0 | $350 | 80% | |||||||||||||
6.44% p.a. | 6.83% p.a. | $3,141 | Principal & Interest | Variable | $395 | $350 | 60% | |||||||||||||
6.44% p.a. | 6.47% p.a. | $3,141 | Principal & Interest | Variable | $0 | $350 | 60% | |||||||||||||
6.49% p.a. | 6.52% p.a. | $3,157 | Principal & Interest | Variable | $0 | $350 | 80% | |||||||||||||
5.94% p.a. | 5.98% p.a. | $2,978 | Principal & Interest | Variable | $0 | $530 | 90% |
| Promoted | Disclosure |
What home loans does Bankwest offer?
Bankwest markets its home loans as straightforward - or 'home loans you can live with', as the tagline goes.
It offers home loans for both owner-occupiers and investors. Let's check some of their main features below:
Bankwest Simple Home Loan
- variable rate
- free redraw facility
- optional 100% offset accounts at $10 a month per account
- flexible repayments
- unlimited extra payments
- interest-only periods up to five years available
- owner occupiers may be able to borrow up to 98% of property value, including lenders mortgage insurance (LMI) - (other lending criteria apply)
If you take out the loan as part of a package - a Complete Variable Home Loan (annual fee of $395), you also get:
- option of linking up to nine offset accounts with no monthly offset fees
- optional credit card with no annual fee
- no progress payment fees for construction loans
Fixed-rate home loan
- fixed-rate option of between one-five years
- extra repayments up to $10,000 a year
- redraw unavailable while on fixed rate
- option to link 40% offset transaction account (no monthly offset fee applies during fixed term)
- interest-only period of up to five years available
If you take out the loan as part of a package - a Complete Fixed Home Loan (annual fee of $395), you also get:
- option to link up to nine offset accounts with no monthly offset fees
- optional credit card with no annual fee
Bankwest home loans as part of a package come with other benefits including:
- no application fee
- no loan maintenance fees
- no valuation fees (unpackaged loans offer one free standard valuation, with fees applying for any additional needed)
- no loan increase fee (although break fees may apply)
40% offset on fixed loans
Many lenders claim to have 'unique' features but Bankwest's 40% offset account on a fixed rate home loan is a bonus virtually no other lender offers.
Essentially, it allows fixed-rate borrowers to keep money in a linked offset account with 40% of the amount they've got deposited coming off their home loan balance when interest is calculated.
So, if there's $20,000 in the offset, $8,000 will come off the home loan balance for interest calculations.
Offset accounts are commonly added to variable-rate home loans but rarely to fixed-rate loans. This can be a useful feature for buyers looking to maximise their interest savings while they're on a fixed rate.
Bankwest home loans - pros
As well as the 40% offset on fixed loans, here are some other pluses associated with Bankwest loans:
Competitive interest rates
Bankwest generally offers interest rates slightly under those offered by the big four banks. It has the advantage of being a smaller name but with the backing of Australia's biggest bank, so it can be competitive on its pricing.
Flexible features
You can keep it simple, add features, or go the whole hog and take out a Complete Home Loan package, according to your needs. It's best to do your calculations to see whether you'll reap the benefits from paying an annual $395 package fee. Read the fine print.
Flexible lending policy
Bankwest has a reputation for flexibility with lending scenarios outside the usual parameters. It can be a good option for those who don't fit the standard lending criteria such as the self-employed, those who earn considerable income from commissions or bonuses, or expats who earn their income from overseas.
Will consider 100% of allowance/overtime income
This includes for emergency services and health care workers where the income is consistent and likely to continue.
Can be an option for borrowers with low deposits
Bankwest will consider lending up to 98% of property value (up to 98% loan-to-value ratio or LVR) to eligible borrowers with LMI. Many lenders cap loans at 95% so this may get some low-deposit borrowers over the line.
Can offer lower interest rates to those with larger deposits
Conversely, those with higher deposits may be offered better-than-advertised rates, depending on individual circumstances. (More on this in broker's view below.)
Will consider family guarantees
Bankwest is willing to consider guarantor loans and other family support set-ups.
Allows multiple offset accounts
Bankwest loans allow up to nine optional offset accounts. These attract no monthly offset fees for those on Complete Package Loans but $10 per month per account for those who whose loans aren't part of a package. Use accordingly.
Good technology
As an digital-only bank, Bankwest has invested in its technology. This applies to its home loan application and approval process, whether going direct or through a mortgage broker. Its mobile app and online banking platforms are also highly regarded.
Bankwest home loans - cons
Fees for offset accounts
Well-utilised offset accounts can save borrowers thousands of dollars in interest. Some lenders offer them for as optional add-ons to basic variable loans but may hike the interest rate you pay. Others may charge you a monthly fee for each offset account added, as Bankwest does. At the time of writing, Bankwest charges $10 a month per 100% offset account. Do your sums to ensure you'll get more value from the offset than what you'll pay in monthly fees.
No branches if you're after over-the-counter service
As a fully digital bank, Bankwest no longer has any physical branches where you can conduct personal banking business. But it does have a 24/7 call centre.
"What sets Bankwest apart is they offer competitive rates and accommodating lending policy, meaning not only do they sometimes offer our clients some of the lowest rates on the market, they also provide solutions where no one else can - or offer stronger borrowing capacity. A great example is how they deal with overseas income. They accept many forms of it and factor in local tax rates of those countries which can often make a significant difference to expats' borrowing power. They are market-leading in that respect. Also their policy toward additional forms of income, such as bonuses, commissions, or even maternity leave, is very accommodating. From an interest rate pricing point of view, when they are hungry for business, they often have unbeatable interest rates, especially for borrowers who may have a combination of owner occupier and investment debt. They essentially act as CommBank's more competitive subsidiary. The loan application process is also smooth and easy, making the experience for both the broker and borrower pain-free and not stressful like some other lenders. They're very quick at picking up applications and issuing approvals."
Bankwest home loans: Broker's review
Eligibility
If you're looking into applying for a Bankwest home loan, eligibility requirements that must be met include:
Applicants must be over the age of 18
Applicants must be an Australian citizen or permanent resident
Applicants must have a regular source of income
Applicants must have a minimum loan amount of $200,000
Good credit history
Demonstrate your ability to service a loan
Compare Bankwest home loans
If you're in the market for a home loan, it's worth comparing Bankwest's rates with some of the most competitive home loan rates on the market in the table below.
Lender Home Loan Interest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Extra Repayments Split Loan Option Tags Features Link Compare Promoted Product Disclosure
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