All Topics / Finance / Home loan offer from bank-west 4.85/3yrs flexible

Viewing 7 posts - 1 through 7 (of 7 total)
  • Profile photo of jimjames41jimjames41
    Member
    @jimjames41
    Join Date: 2009
    Post Count: 4

    I have got a tempting offer with no "fine prints' ( at least I can't see it) from BankWest through a morgage broker for my home upgrade loan.
    What do you guys think about this.
    I have done my excelsheet calculation and I am sure that I will be able to pay this loan withing 3-1/2 yrs. What do you guys think about this?
    Any suggestions?

    4.85% @ 3 years flexible morgage. No hidden cost!!

    Date Created: Tuesday, June 20, 2009

    Refinance Value: $ 0 Security Value: $ 920 000

    Loan Value: $ 650 000 Property Usage: Owner Occupied

    Total Lending Facility: $ 650 000 Security Details: Purchase

    Loan Term: 30 Years First Home Buyer: No

    Termination Period: 7 Years State: NSW

    Loan to Valuation Ratio (LVR): 70.65%

    Product Feature BankWest, Rate Tracker Ultra Home Loan

    Special Product?

    Offset Product 100%

    Comparison Rate (AAPR) 5.25%

    Initial Interest Rate 4.85%

    Reverting Interest Rate 5.58%

    Initial Rate Period 3 years

    Total establishment fees $595

    Ongoing costs $0.00

    Ongoing cost period -N/A

    Exit Fees $300

    Early Repayment Fee N/a

    Split Fees $0

    Switching/loan variation fee $350.00 / $350.00

    Repayment Type P&I

    I/O

    Additional repayments Yes

    Cost per repayment $0

    Minimum repayment N/a

    Maximum repayment N/a

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    The Comparison Rate is 5.51% and not 5.25% and there is a $15 / month charge for the offset account.

    The product is fine if you can put up with the Banks level of service and tight credit policies.

    Couple of other products out there that are similar.

    Richard Taylor | Australia's leading private lender

    Profile photo of fujitsufujitsu
    Member
    @fujitsu
    Join Date: 2008
    Post Count: 11

    The initial rate is 4.85% for 3 years then reverting back to the full amount. You stated you can pay it off in 3.5 years so you get the discounted rate for the most of your loan term. One thing you should look out for is to see if there is any early termination fees. Most banks charge a fee if you pay off your home loan inside 3- 4 years.

    Termination Period: 7 Years State: NSW
    I am not sure what that means but could mean your minimum loan term is 7 years.

    The only other question is how do you pay off $650k plus interest in 3.5 years???
    I wish i could pay off my home loan in 3.5 years.

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    i think it is a great product – for the first 3 years only. Then you can easily change as the exit fees are minimal.

    I would also get a longer term just in case. You can always pay it off quicker.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of PosEnterprisesPosEnterprises
    Member
    @posenterprises
    Join Date: 2006
    Post Count: 290

    Is anyone aware that there is a Bank of  China in Australia with low rates also!

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    Yes PE they have been in Oz for a while but have you ever tried to get a loan through them.

    Makes Bank West look like a breeze.

    Richard Taylor | Australia's leading private lender

    Profile photo of js2js2
    Member
    @js2
    Join Date: 2003
    Post Count: 758

    To echo my sisters words. I will never take out a loan with bank west again. I think mainly because with her situation living out on a farm house that they have no branches and any communications was ridiculous.

Viewing 7 posts - 1 through 7 (of 7 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.