Bankwest has cut rates on its Premium Select Home Loan, and has revived its Low Doc Home Loan.
The Premium Select product now offers a 6.85% rate for loans below 75% LVR and 6.95% for loans from 75% to 95% LVR. The rate includes a life-of-loan discount, and the bank has said larger discounts are available for clients borrowing more than $750,000.
The bank has further announced it will replace its Easy Doc Home Loan with the reinstatement of its Low Doc product. The product will carry a 7.20% rate for loans up to 60% LVR. Bankwest head of specialist banking Ian Rakhit said the bank will also continue its no application fee offer until further notice. Rakhit said the move to revive the bank's Low Doc product in place of its Easy Doc Home Loan was in response to broker feedback.
"We've always been good supporters of the low-doc and easy doc products. At one point we were writing 22% of all low-doc mortgages on the market. It's a product that has particular resonance for customers, particularly those who go through brokers for finance," Rakhit told Australian BrokerNews.
As many banks tighten lending criteria, Rakhit indicated a hole had been left in the market for lenders to appeal to self-employed borrowers.
"The reason we sharpened our pencil on this product is exactly that. We feel it's an opportunity to take market share. It's still good, quality borrowiing for us, and will increase our attractiveness for brokers for this type of product," he remarked.
Rakhit also refused to shy away from the term low-doc. With many low-doc lenders now moving towards terms such as "specialised," "non-conforming" or "self-employed," Rakhit said there should be no shame or stigmatisation surrounding low-doc lending.
"If others wanted to move away from the name of the product, that's of their own making. Low-doc reflects what it is. It's for good. quality borrowers who have sizeable deposits or equity, but can't show their income through traditional PAYG methods. I don't see that it needs to be a stigmatised market or one that needs to be adversely viewed," Rakhit said.
Non-con loans to face new scrutiny