The Premium Select Home Loan

If you’re looking at a loan amount of $0 or more, you’re setting yourself up for a significant mortgage responsibility and you deserve all the help you can get to make it easier to manage and repay your loan. That is why Bankwest offer the Premium Select Home Loan, to reward you with a discounted interest rate for the life of the loan, plus features such as a 100% offset account to make repaying your mortgage faster and making it easy to save on interest.

The interest rate is an unavoidable feature of any home loan because it is just the cost of borrowing money and if you were to wait until you could afford to pay for your home in cash you’d probably be about ready to make your next move – to a retirement village. As a result we all accept that we have to pay interest on our mortgages, but if you shop around and look for a loan which allows you to use your money cleverly, you’ll have nailed down the right interest rate arrangement and the rest will fall into place.

With the Bankwest Premium Select Home Loan, the rest is:

• A 0.7% interest rate discount for the life of the loan. The minimum loan amount for the Premium Select Home Loan is $0 but when you borrow more than $750,000 you will qualify for a discounted interest rate applied to your loan account for as long as you hold the loan with Bankwest.
• There is an application fee of and the home loan application fee also includes one standard valuation of the property.
• You need just 5% deposit. Not including the additional home loan and home buying fees and charges, when you apply for the Premium Select Home Loan you can borrow up to of the property value so you need to provide just a 5% deposit from your own funds.
• Interest only repayments. You can choose to make interest only repayments to your Premium Select Home Loan if you are using the loan to purchase an investment property or if you need to lower your repayment amount for a while because your financial circumstances have changed.
• A 100% offset account. A 100% offset account can be used in conjunction with your home loan account to reduce the interest portion of your monthly repayments, therefore allowing more of your repayment amount to go towards paying down your principal loan amount. The funds in your offset account offset an equal amount in your loan account so you are charged interest on your loan amount less the amount in your offset account, for example if your home loan is for $750,000 and you have $20,000 of savings in your offset account you pay interest on a loan amount of just $730,000.
• Optional transaction account. You can also choose to apply for a Lite Direct Transaction account with a $3.99 monthly fee so that you can manage all of your accounts at Bankwest and have easy access to transfer funds between your accounts for free, within the same provider.

Who is the Premium Select Home Loan Suited To?

While it is tempting to raise your home buying budget in order to qualify for an interest rate discount, if you over extend yourself on your home loan it will cost you a lot more than 0.7%. If you are already considering a loan amount of this size and you have made sure that your repayments will fit into your budget now, and over the next 20 to 30 years then you should consider the interest rate discount as a bonus, as you shop around for the loan which is right for you in every respect.

You may also want to consider the Premium Select Home Loan if:

• You want to borrow more than the value of the property. If the property you are purchasing needs significant improvements or landscaping then you can extend your loan amount to borrow money to cover those costs. You will need to show quotes from the contractors who will conduct the work, to prove that the money you are borrowing will go towards the house and increase the value. For example, you may be purchasing a property for $700,000 which needs $50,000 worth of renovations or you want to add an extension and so you can qualify for the discounted interest rate.
• You are building a new home. Buying land and paying for a home to be built up to the value of $750,000 will result in a home which is worth sometimes twice that much if bought new because during the year of the building process prices go up and by the time your home is finished it has already increased in value and you have built equity. This means that even though you have a large loan, you have room to move as your loan to value ratio is not as high.

To apply for a Premium Select Home Loan you can complete an online enquiry form with Bankwest and a loan specialist will call you back at a time which is convenient for you.

Read the Bankwest Premium Select Home Loan terms and conditions.

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