Non-major starts 2019 by cutting rates

by Rebecca Pike08 Jan 2019

A non-major bank has announced it is cutting interest rates for borrowers with higher deposits to start the new year.

Bankwest has reduced owner occupier rates on its Complete Variable, Premium Select and Complete Fixed Home Loans, as of today (8 January) for new borrowers with deposits of more than 20%.

It has also introduced a new pricing tier for borrowers with a deposit of up to 10%.

The interest rates have reduced by up to 18 basis points and are for new borrowers with principal and interest repayments.

For borrowers taking out a Complete Variable Home Loan and a loan to value ratio of less than 80%, the variable rate has dropped from 3.85% per annum to 3.72%.

Borrowers with a loan to value ratio of between 80.01% and 90% will not see any change and will therefore now have a higher interest rate of 3.85%.

For new borrowers taking out a Premium Select Home Loan, the interest rates have also only changed for borrowers with loan to value ratios of less than 80%.

If the loan amount is between $20k and $499k, the interest rate has dropped from 4.00% to 3.82%.

For loans of more than $500k, the loan has also dropped to 3.82%, from an original rate of 3.94%.

The new pricing tier for borrowers with a loan to value ratio of up to 90% on a two-year term Complete Fixed Home Loan sees the interest rate drop from 3.88% to 3.75%.

Bankwest also started the new year implementing its decision to remove reverse mortgages from its offering from 1 January.

Other banks which have decreased interest rates at the start of 2019 are IMB and P&N Bank, both of whom are still offering reverse mortgages.

IMB dropped its variable interest rates for owner occupiers by up to 43 basis points.

P&N Bank dropped its fixed rates for owner occupiers by up to 36 basis points and also for investors by up to 49 basis points.