Bankwest Mortgage Shredder Loan

Features

Whether you’re purchasing a home to live in or an investment property, building a new home or refinancing, the Bankwest Mortgage Shredder Home Loan is a basic variable rate loan with features that give you the ability to pay off your loan sooner. For example, the 100 per cent offset account is a transaction account that offsets the interest due on your home loan. The more you transfer into your offset account, the more your interest on your loan is reduced.

However, there is a monthly fee for using this account. You can also make early repayments towards your loan without being charged any penalty-fees and you can redraw any of these funds in the redraw facility if you need to do so. However, the variable rate for this loan is high for both owner-occupier and investment loans.

You do have access to an interest-only repayment option up to a maximum term which could give you some time before having to make payments towards your principal amount. The minimum amount you must borrow for this loan is a bit high, but you can borrow most of your property’s value and only have to make a five per cent deposit on your property if you’re an owner-occupier and a 10 per cent deposit if you’re an investor.

Bear in mind that you will have to pay lenders’ insurance for borrowing over 80 per cent of your property’s value. The Mortgage Shredder Home Loan also has a flexible repayment schedule with weekly, fortnightly and monthly repayments. If you like having all of your financial products through one provider, Bankwest also offers home and contents insurance alongside this loan, which is an added cost that is determined per basis.

Who is the Bankwest Mortgage Shredder Loan good for?

The Mortgage Shredder Loan could be a suitable option for first home buyers or borrowers who have been in the property market for years who want flexibility.

The flexible repayment schedule, interest-only repayment option and features such as a 100 per cent offset account and redraw facility make this a basic home loan that could suit a variety of needs.

Review - What RateCity says

It’s always a good idea to be cautious of a home loan with a high interest rate, however it’s not necessarily reason enough to turn it down if you have made a list of exactly what you want and need out of your home loan and have determined that this loan best suits your needs.

The Mortgage Shredder Loan could be an attractive basic variable home loan, but it does have its negatives, such as several fee categories, which make further research worthwhile.

Bankwest Mortgage Shredder Loan Options

The Mortgage Shredder Home Loan is offered by Bankwest as an owner-occupied or an investment loan. Information about each option can be found at the below links.

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Variable Rates from

5.13%

Advertised rate

5.15%

Comparison rate
Pros
  • Early repayments allowed.
  • 100 per cent offset account.
  • No ongoing fees.
Cons
  • High variable interest rate.
  • High upfront cost.
  • Fees charged for 100 per cent offset account, mortgage portability and top-up options.
Eligibility

Must be able to provide employment details.

Must provide financial details.

Must meet serviceability criteria.

Suitable For
  • First Home Buyers
  • Owner-Occupiers
  • Refinancers
  • Investors
Fees
  • Estimated upfront fees: $845.00
  • Discharge fees: $338.4
  • Ongoing fees: $0

A downside of the Mortgage Shredder Home Loan is the high upfront cost which includes an application fee and third party fees. There is also an average discharge fee that you will have to pay at the end of your loan term.

There are no ongoing fees unless you use the monthly offset account, which you’ll be charged a monthly fee to use. The mortgage portability option also charges a fee to use.

Features
  • Redraw facility
  • 100% offset account
  • Unlimited extra repayments
  • Weekly repayments
  • Fortnightly repayments
  • Monthly repayments
About Bankwest

Bankwest is a division of Commonwealth Bank of Australia offering a variety of personal and business financial products and services with banking centres, stores and ATMs throughout Perth.

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