Bankwest is looking to appeal to loyal borrowers through a new home loan product which allows them to save more the more they stay.
The new Rate Cutter Home Loan will “improve with age” according to the bank, offering customers up to 0.80 per cent off the standard variable rate after the first 4 years with the bank.
Initially the Rate Cutter home loan offers a discount of only 0.40 per cent, with that discount increasing by 0.10 per cent each year. Once borrowers reach the 0.80 per cent discount they will be eligible for that saving for the life of the loan.
Dean Gillespie, heads up the mortgages division at the bank. He believes that more borrowers are keeping their loans with the bank for longer periods and as a result the bank decided it was appropriate to reward such behavior.
“We’ve listened to our customers and they’ve told us they want a bank that looks after them over the long term. So that’s exactly what we’ve delivered.”
According to Bankwest a customer taking out a rate cutter home loan would be able to save $5,510 at the end of the first four years of their loan if their mortgage balance is $285,000.