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Bankwest raises mortgage rates by 15 basis points

Bankwest raises mortgage rates by 15 basis points

Bankwest is following in the footsteps of several leading Aussie banks in raising mortgage rates by 15 basis points for owner-occupiers and investors.

As of 4 October 2018, the reference rate for owner-occupier variable home loans paying principal and interest (P&I) will increase from 5.42 per cent to 5.57 per cent. Owner-occupier interest-only (IO) variable loans will also increase from 5.77 per cent to 5.92 per cent.

For investor P&I home loan reference rates, the increase is from 6.07 per cent to 6.22 per cent. Investors paying IO will see rates move from 6.32 per cent to 6.47 per cent.

Bankwest fixed rate loans will not be affected, however, owner-occupier and investor fixed comparison rates have adapted in response to these reference rate increases. 

Bankwest, a Commbank subsidiary, is mirroring similar increases of 15 basis points the big four bank made only weeks ago.

Owner-occupier variable home loan (P&I) repayment increases:

Loan size

Monthly repayments

5.42% (old reference rate)

Monthly repayments

5.57% (new reference rate)

Extra monthly repayment

Extra cost annually

$300,000

$1,688

$1,717

$29

$348

$500,000

$2,814

$2,861

$47

$564

$750,000

$4,221

$4,291

$70

$840

$1,000,000

$5,628

$5,722

$94

$1,128

Data based on a home loan term of 30 years.

Investor variable home loan (P&I) repayment increases:

Loan size

Monthly repayments

6.07% (old reference rate)

Monthly repayments

6.22% (new reference rate)

Extra monthly repayment

Extra cost annually

$300,000

$1,812

$1,841

$29

$348

$500,000

$3,020

$3,069

$49

$588

$750,000

$4,530

$4,603

$73

$876

$1,000,000

$6,041

$6,138

$97

$1,164

Data based on a home loan term of 30 years.

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This article was reviewed by Head of Content Leigh Stark before it was published as part of RateCity's Fact Check process.

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