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Bankwest (formerly the Bank of Western Australia) is now a division of Commonwealth Bank, but it operates with its own products and policies. It has built a reputation for competitive rates and innovative features (like multiple offset accounts) that appeal to tech-savvy and budget-conscious buyers. In this article, we provide a comprehensive Bankwest home loan review for homebuyers.

We’ll cover how Bankwest stacks up against big banks like Commonwealth Bank (CBA), Westpac, and ANZ, what products and features they offer, their eligibility criteria, and even walk you through the application process step by step.

Let’s jump in!

Things Bankwest Are Pretty Good At

Bankwest has been around since 1895 (originating in WA) and became part of the Commonwealth Bank Group in 2008. Despite its parent company, Bankwest maintains its own identity – often positioning itself as a customer-friendly alternative to the “Big 4”. If you’re a first-home buyer, you might consider Bankwest for a few key reasons:

Competitive Interest Rates: Bankwest often offers slightly lower interest rates compared to the major banks. Being a smaller brand under a big umbrella allows it to be aggressive on pricing to win customers.
Flexible Home Loan Features: Bankwest provides a range of loan options, from basic “no-frills” loans to comprehensive package loans. Their flagship package, called Complete Home Loan, is known for multiple offset accounts and even an offset facility on fixed rates – features not all banks provide. This flexibility can be a big draw for buyers who want to maximise interest savings and manage their money smartly.
First-Home Buyer-Friendly Policies: As we’ll cover in detail, Bankwest is willing to lend up to 98% of the property value with Lenders’ Mortgage Insurance for eligible borrowers. That means you might be able to buy with just a 2% deposit (plus costs) – a slight edge over many competitors who cap loans at 95%, including LMI. They also participate in family guarantee setups and offer LMI waivers for certain professions, making it easier to get into a home sooner.
Digital-Savvy and Easy Process: Bankwest has invested in its technology and online application process. Borrowers and brokers often praise Bankwest’s online portal for being quick and easy – you can upload documents and get loan updates without mountains of paperwork. For a first-time buyer, a smoother process with clear communication is a relief. Bankwest’s mobile app and online banking are also well-regarded, making it easy to manage your loan after settlement.
Personalised Service with Big-Bank Backing: With Bankwest, you get the best of both worlds: a more personal, focused service model and the reassurance that they’re backed by CBA (Australia’s largest bank). This can be comforting – you know your lender is financially stable, and you might even be able to use CBA branches for basic transactions. Bankwest has fewer physical branches outside WA, but they do have a presence in major cities, and you can use Australia Post Bank@Post for deposits/withdrawals.

In short, Bankwest positions itself as a go-to lender for first-home buyers and young families by offering competitive deals and extra flexibility. If you’ve only saved a modest deposit, Bankwest might still have options for you when other lenders might not.

Of course, choosing a home loan is not just about what one lender can do – it’s also about how they compare to others. So let’s put Bankwest side by side with a few of its main competitors on the things that matter: interest rates, fees, features, and eligibility.

Bankwest Home Loans vs Competitors (CBA, Westpac, ANZ)

How does Bankwest stack up against the big household-name banks like Commonwealth Bank (CBA), Westpac, and ANZ? As a first-home buyer, you’re probably considering at least one of those lenders since the big banks offer well-known first-home programs and have extensive branch networks. Below, we’ll compare key aspects:

1. Interest Rates Comparison

Interest rates are usually the first thing people compare – even a small difference in rate can change your monthly repayment and the total interest over the life of the loan. Australia has seen interest rates rise sharply through 2022-2023, and then a recent small cut in Feb 2025 brought some relief. In this competitive environment, Bankwest’s rates are often slightly lower than the Big Four banks’ rates for similar loans, reflecting the trend that smaller lenders tend to undercut the majors.

Bankwest: For an owner-occupier paying Principal & Interest with a 20% deposit (80% LVR), Bankwest’s variable rates are around 6.1% p.a. If you have an even bigger deposit (say 40%), rates can be around 5.99% p.a. In some cases. Bankwest often gives better discounts for lower LVRs (loan-to-value ratios), and package loans get additional rate discounts on top of that.
Commonwealth Bank (CBA): CBA’s equivalent package variable rate for an owner-occupier at 80% LVR is around 6.49% p.a. With a bigger deposit (<60% LVR), it could be 6.34%, but that’s still a tad higher than Bankwest at similar LVR. CBA tends to be slightly more expensive on rates, perhaps 0.2 – 0.4% above Bankwest for comparable loans. However, CBA sometimes runs special offers such as extra discounts for new customers or an introductory rate for the first 2 years. It’s worth noting that CBA has a basic loan, which can be slightly cheaper than their package if you forego features. But even that sits around mid 6%s currently.
Westpac: Westpac’s packaged variable rates for owner-occupiers are roughly in the 6.4% – 6.6% p.a. range for 60–80% LVR, similar to CBA. Westpac has a product called Flexi First, which has an introductory discount. After the introductory period, it ends up near the 6%+ range. In short, Westpac’s rates are also generally a bit higher than Bankwest’s for the same LVR. One thing to watch with Westpac is they often advertise a nice low “honeymoon” rate for the first 2 years on their Flexi First, but then it reverts to a higher rate. Make sure you compare the comparison rate, which factors this in.
ANZ: ANZ’s packaged variable rate for owner-occupiers with a 20% deposit is also around 6.5% p.a. at last check, similar to CBA/Westpac. They have a basic loan (Simplicity Plus) that is cheaper but, again, lacks features. ANZ recently hasn’t been the absolute cheapest; they often rely on their brand and have other incentives like their app or cashback in the past, though cashback offers are waning.
Other Lenders: It’s worth noting many non-bank or online lenders have rates in the low 5% range, substantially undercutting both Bankwest and the big banks. We mention this because, as a first-home buyer, it’s wise to compare widely. Bankwest, being part of a big bank, won’t always beat the likes of credit unions or online-only lenders on rate. But Bankwest tries to strike a balance of competitive rates plus big-bank level features/service.

In summary, Bankwest often has a rate advantage of a few tenths of a percent compared to CBA, Westpac, and ANZ on equivalent loans. That might sound small, but on a $500,000 loan, a 0.30% rate difference is about a $1,500 difference in interest in just the first year. Over a 30-year loan, that adds up.

The table below provides a quick visual comparison of some key figures:

Sample Comparison – Owner-Occupier P&I Loan (approx. rates as of April 2025):

Lender	Variable Rate (80% LVR)	Comparison Rate
Bankwest	6.09% p.a.	6.12%
CBA	6.49% p.a.	6.8% p.a.
Westpac	6.45% p.a.	6.6% p.a.
ANZ	6.50% p.a.	6.7% p.a.
Other Lenders	5.70–5.90% p.a.	varies

Source: Based on lender rate cards and comparison websites, March 2025. Always check current rates as they change frequently.

As you can see, Bankwest holds its own and even leads on pricing in this group. Now, a low rate is great, but not if it comes with high fees or fewer features. So next, let’s examine the fees and features side of the equation.

2. Bankwest home loan review for investors.

If you’re a first-home buyer looking at an investment property (or considering renting out your first home in the future), note that Bankwest (and others) charge slightly higher rates for investor loans. For example, Bankwest’s investment P&I variable might be 0.20% above the owner-occupier rate. Big banks also have similar differences. Additionally, interest-only loans typically come with a rate premium (often +0.10–0.20%) for both Bankwest and the majors.

3. Fees and Charges

When comparing home loans, fees can sometimes be the “hidden” cost. A loan with a low rate but high fees might cost more overall than a loan with a slightly higher rate and low fees. Here’s how Bankwest and the big banks compare on common fees:

Upfront Fees (Application/Establishment): Bankwest’s fees can vary by product. On many of its home loans, Bankwest does not charge an application fee – particularly if you take the Complete Package. If you go for a basic loan without the package, there might be an application or settlement fee. For example, InfoChoice notes a $695 application fee and $350 settlement fee on some Bankwest loans, but these are waived in the package. CBA, Westpac, and ANZ all have similar application fees, typically around $600, which they often waive if you’re on their package (which has an annual fee). Sometimes, these banks run promotions waiving application fees for certain customers or online applications. As of now, expect to pay $0 upfront if you choose a package with any of these lenders or around $600–$800 upfront if not.
Annual Package Fee: Nearly all major lenders charge an annual fee for their package loans, which bundle an offset account and other perks. Bankwest’s package fee is $395 per year, exactly like CBA, Westpac and ANZ. So there’s no real difference there – it’s an industry standard figure. In return for the fee, you typically get interest rate discounts, an offset account, and sometimes a credit card with no annual fee. The key is to make sure the savings outweigh the fee. With Bankwest’s package, if you’re getting a rate that’s even 0.10% better because of it, on a $400,000 loan, that’s $400/year saved, which basically covers the fee.
Offset Account Fees: Some banks charge a fee for offset accounts if you’re not on the package. Bankwest, for instance, allows offset accounts on its basic variable loan but charges $10 per month for each offset account if you don’t have the package. If you aren’t on the package, CBA similarly charges a $10 monthly fee for its offset transaction account. Westpac doesn’t charge extra for offset accounts on the package, but if you somehow had an offset on a non-package account, you might pay a monthly fee on the account. If you want an offset, it usually makes sense to be in the package for most banks to avoid nickel-and-dime fees. Bankwest’s package includes 9 offset accounts with no separate fee as part of the $395 package cost.
Monthly/ongoing fees: Aside from package fees, some basic loans have monthly service fees. Bankwest’s “Simple Home Loan” has no monthly fee (hence “simple”), whereas some older Bankwest products had a $12/month maintenance fee for fixed loans or certain legacy products. CBA, Westpac and ANZ have no monthly fees. Nowadays, lenders have mostly scrapped monthly fees on loans to stay competitive. So, in terms of ongoing fees, you’re mostly looking at the annual fee, if any. If you choose not to do a package with Bankwest, double-check if any small monthly fee applies.
Lenders’ Mortgage Insurance (LMI): This is not a lender fee per se (it’s paid to an insurer) but an important cost for first-home buyers with less than 20% deposit. This will be similar across all lenders – though Bankwest allowing up to 98% LVR means you could potentially capitalise more of the LMI into the loan. Regardless of the lender, if you borrow over 80% LVR, you’ll likely pay LMI (unless using a special scheme or waiver). The cost of LMI can be tens of thousands of dollars. Bankwest allows the loan, including LMI, to go up to 98% LVR. Other banks often limit the total loan to 95%, including LMI, meaning you might have to pay part of the LMI out of pocket if it pushes you over that cap.
Discharge Fee: When you eventually pay off the loan or refinance to another lender, most banks charge a discharge administration fee. Bankwest’s discharge fee is usually a few hundred dollars (commonly $350). CBA, Westpac, and ANZ all charge between$300 and $400 to cover their paperwork when you leave. It’s standard and not a big differentiator.
Other fees: If you request loan variations later, like splitting your loan or switching from variable to fixed, there might be small fees. Bankwest’s loan variation fee might be around $250, depending on the change. This is on par with others. If you increase your loan later, Bankwest has a fee of $295, similar to others. Late payment fees apply if you miss payments. And break costs if you exit a fixed loan early – this isn’t unique to any one bank; it’s determined by interest rate movements.

In summary, Bankwest’s fee structure is very similar to that of big banks. The $395 package fee is a given across most, and Bankwest doesn’t gouge you on monthly fees or application fees any more than the others do. In fact, many first-home buyers with Bankwest pay $0 upfront and just pay the annual fee, which is exactly what they’d do at CBA/Westpac/ANZ on a package.

One thing to highlight is that many lenders have been reducing or eliminating cashback offers. In the past couple of years, it was common to get $2,000 – $4,000 cashback for refinancing or even for first-home buyers as an incentive. But now cashbacks are much rarer – banks are focusing on lower rates instead.

4. Features and Benefits

This is where Bankwest tends to shine. Let’s compare some key features of home loans – offset accounts, redraw, repayment flexibility, digital tools, etc. – and see how Bankwest stacks up:

Offset Accounts: An offset account is a must-have feature for many buyers, as it can save interest on your loan while giving you access to your savings. Bankwest’s Complete Package allows up to nine (9) offset accounts on a single home loan – which is huge. This means you can have multiple buckets for your money (e.g., one for everyday spending, one for bills, one for renovations savings, etc.), all offsetting your loan interest. In comparison:
- CBA typically allows one offset account per loan (they call it an Everyday Offset, and you’d open one per loan split if you have multiple splits).
- Westpac recently upgraded to allow up to 10 offset accounts on their new packages (they followed Bankwest’s lead here), which is great for Westpac customers.
- ANZ generally allows only one offset per loan account (they haven’t been as generous on this feature historically, though this could change with new products).

So Bankwest is on the leading edge with Westpac on number of offsets. Additionally, Bankwest’s offset accounts are 100% offset on variable loans, and uniquely, they offer a partial offset on fixed loans, which is 40%. This is a rare feature – most banks do not allow offsets on fixed loans at all. So, Bankwest gives you the flexibility to park money against a fixed loan while still reducing some interest. This could be beneficial if you fix your rate but want to keep an emergency fund working to reduce interest a bit.

Redraw Facility: All the compared lenders offer a redraw on variable loans, letting you withdraw any extra repayments you’ve made. Bankwest’s redraw has no minimum redraw amount via the app/online, which is convenient. Nothing stands out here except that Bankwest’s system is user-friendly, and redraws are instant transfers via their app. The big banks equally have easy redraw through their apps.
Repayment Flexibility: Bankwest allows you to choose weekly, fortnightly, or monthly repayment schedules to suit your pay cycle, which is standard for all major lenders. They also allow unlimited extra repayments on variable loans (again, standard). For fixed loans, Bankwest lets you pay up to $10,000 extra per year without penalties, which is pretty good. CBA and others often have a total cap of $10,000 or $20,000 over the fixed term. Bankwest also advertises a Repayment Holiday feature, meaning you can request a pause or reduction in repayments for a short period. Many banks have hardship arrangements or payment pause options, but Bankwest promotes it as a feature if you’ve made payments ahead of schedule. Essentially, if you’re ahead on your loan, you might be allowed to skip payments for a while and let the ahead credit cover it. It’s nice to know this flexibility exists if life throws a curveball.
Loan Types and Split Loans: Bankwest offers all the usual loan types: principal & interest (P&I) and interest-only (IO). If you want interest-only, Bankwest offers that, but expect a higher rate. You can also split your loan into part fixed and part variable – Bankwest allows up to 6 splits. The big banks also allow splitting, usually up to 4-5 splits. This could be useful if, for example, you want to have one split to pay down aggressively and one split fixed for stability.
Digital Experience: We touched on this, but Bankwest’s digital application process is very streamlined. Document uploads, e-signatures, and tracking are all online. They even have a Bankwest Online Application portal used by borrowers and brokers that speeds things up. Brokers have complimented Bankwest’s system as a game changer for quick approvals. Post-settlement, the Bankwest mobile app is modern and easy to use. One minor downside: Bankwest doesn’t have as many physical branches (particularly outside WA). If you’re the type who likes face-to-face service, CBA or Westpac might edge out simply due to the ubiquity of branches. However, Bankwest does have a 24/7 call centre.
Specialised Benefits: Bankwest, being part of CBA, can sometimes offer unique perks. For instance, Bankwest customers used to get access to a program called “Bankwest Halo” offers or deals – not a huge factor in a home loan decision, though. One concrete benefit: Bankwest’s credit card offering can be bundled with the home loan package with no annual fee on the credit card. Similarly, CBA’s package waives one credit card annual fee, and Westpac’s package does, too. This is useful if you want a rewards credit card to consolidate your expenses – you can save ~$100-$150 annual fee by bundling it. Bankwest has a few credit card options that would be free under the package. It’s a nice little extra.
Guarantor home loans: Bankwest is open to guarantor loans (family guarantee), which is extremely useful for first-home buyers. Bankwest is competitive in offering options like guarantor support, which not all smaller lenders do. CBA, Westpac, and ANZ all have family guarantee options, too, but some smaller competitors might not.

Overall, Bankwest’s features are a strong selling point. The multiple offset accounts and partial offset on fixed rates are standouts that not all competitors provide. For a first-home buyer who’s savvy with their money, being able to segment savings and still have all of them reduce your interest is brilliant. Westpac is now matching that multiple offset feature, which shows it’s a valued feature in the market.

5. Customer Service & Approval Process

Since this is often on first-home buyers’ minds, let’s touch on Bankwest vs others in terms of service and lending criteria flexibility:

Approval Speed: This can vary with volumes, but Bankwest has historically been quite fast with approvals, especially through mortgage brokers. Because their system is efficient, we often see approvals from Bankwest in days, not weeks, when the application is clean, and the docs are in order. Big banks can sometimes be slower, especially if they have higher volumes. CBA can sometimes take a week or more for conditional approval if busy.
Credit Policy Flexibility: Here’s where ‘lender personality’ comes in. Bankwest prides itself on flexibility for certain types of borrowers. For example, if you have a unique income situation, Bankwest might be more accommodating than a rigid big bank. We’ve seen Bankwest count overtime and bonus income generously. When it’s regular they might take 100% of overtime if it’s consistent and likely to continue, whereas some banks shave it to 80% or require a 2-year average. Bankwest is generally comfortable up to 7.5 DTI, depending on your credit score. If you’re self-employed, Bankwest usually needs 2 years’ financials, similar to others, but they are known to be good with professionals and high LVR loans.
Also, Bankwest will not accept foreign income for new loans unless refinancing an existing Bankwest loan. This is something they’re a bit stricter on than some – CBA might accept foreign income in some cases, but Bankwest just says no. Each lender has quirks; the point is, Bankwest is considered a middle-ground lender on credit policy: not as ultra-tight as some smaller banks can be, and often a tad more flexible than the major banks on certain criteria.
Customer Service: As a first-time buyer, you may need more hand-holding. Bankwest’s customer support is available via phone or through your broker’s Bankwest contact, which is generally very friendly. They consistently rate well in customer satisfaction surveys. The trade-off of fewer branches is mitigated by a good phone/internet service structure. By contrast, a big bank like CBA has the advantage of having local branch loan managers you can meet, which some folks like. But remember, you can always use a mortgage broker (like us!) to get that personal touch and still get a Bankwest loan. Brokers often have direct lines to Bankwest credit teams, which can help smooth out any issues or exceptions.

Post-settlement care: After your loan is set up, Bankwest will call you to welcome you, and you will become just like any bank customer. The app has online chat support, which is handy for quick queries. Big banks similarly have extensive support options. One thing to mention: Bankwest being smaller might mean less hold time when calling compared to, say, calling CBA at peak times.

Bankwest Home Loan Products Overview

Bankwest has a range of home loan products to suit different needs. For a first-home buyer, the options can seem bewildering, but it really boils down to a few key choices: Do you want a basic loan or a package loan with extras? Variable, fixed or a split? Owner-occupied or investment purpose? Let’s break down what Bankwest offers in each category and the key features of each.

Bankwest Complete Home Loan Package (Variable or Fixed)

This is Bankwest’s package deal. It can be taken with a variable rate, a fixed rate (1-5 year terms available) or a combination. The package offers the following:

Interest Rate Discounts: With the package, you get discounted variable rates off the standard variable rate. The discount size depends on your loan size and LVR. For example, larger loans or lower LVRs get bigger discounts. Bankwest doesn’t publicly list the full discount tiers in marketing, but as seen on rate comparison sites, at 80% LVR, the package variable rate is 6.1%, compared to a standard 6.59% rate. So, roughly a 0.49% discount in that scenario. They also discount fixed rates slightly for package customers.
Offset Accounts: Bankwest offers up to 9 offset accounts on variable loans with no extra fee. For fixed loans under the package, you can add a 40% offset account (which is a very attractive feature if you want to fix but still offset some savings).
- Credit Card: You can have an eligible Bankwest credit card with no annual fee as part of the package. The popular credit card choice is Bankwest Zero Platinum or Qantas Mastercard if you want Qantas points.
- Annual fee: $395, which covers all loans under the package. You can have multiple splits/loans and just pay one fee).

If you plan to use an offset account, split loans or want the lowest rate, the package is usually the way to go. Most first-home buyers who can manage the annual fee opt for this because the rate discount and offset flexibility pay off.

Bankwest Simple Home Loan (Basic Variable)]

This is the no-frills variable loan. It has the following features:

It typically has no ongoing monthly fees.
No automatic offset account. You could add an offset for $10/month if you want, but if you do that, you might as well consider the package depending on your situation. It does have redraw available.
The interest rate on the Simple Home Loan can actually be very competitive – sometimes equal to the package rate for certain LVRs. For instance, Bankwest Simple and Bankwest Complete (package) currently have similar headline rates at 80% LVR. The main difference is features. So, if you absolutely don’t need an offset account or credit card perks, the Simple could save you the $395 annual fee.
For many first-home buyers on a tight budget, not having to pay an annual fee is appealing. Just remember that without an offset, any money you want to park against the loan has to be via redraw, which is fine, but slightly less accessible than an offset account.
You can still split the Simple loan (e.g. part fixed/part variable), but if you start adding fixed or offsets, you might end up effectively converting to the package.
The minimum loan size might be lower on this. Bankwest might do smaller loans on simple, whereas the package needs at least $200,00.

Fixed Rate Home Loan (Standalone)

Bankwest offers fixed rates, usually under the package or as part of complete. Technically, you could take a fixed loan without the package, but then you wouldn’t have offset. So, most people doing fixed with Bankwest will do the Complete Package to get the offset benefit and flexibility to split. Bankwest Fixed Rate Loan offers the following features:

Fixed periods range from 1 to 5 years. Bankwest’s fixed rates are around 6.09% for 3 years, owner-occupied. However, the comparison rate is much higher. This implies that after the fixed period, the rate reverts to the standard variable (which is high), so that comp rate looks scary. The key message: if you fix, plan to review your loan at the end of the fixed term to avoid reverting to a high rate.
Up to $10,000 extra repayments per year allowed on fixed, and no redraw during the fixed term.
Bankwest also mentioned enabling redraw “over the counter” even when fixed after a certain point, but generally, you assume there will be no redraw until you refix or switch.

Line of Credit: Bankwest doesn’t really market a line of credit for personal customers. They used to have one, but it’s not actively promoted. Most first-home buyers aren’t looking for a line of credit anyway, so this is probably irrelevant unless you intend to renovate and want a reusable credit facility.

Construction Loan

If your first home is actually building a new house, Bankwest does offer construction loans. They essentially convert to a standard loan after construction. During construction, you draw down in stages and pay interest only on what’s drawn. Bankwest’s policies for construction are fairly standard. The product would likely be set up under the Complete Package or basic variable as well. They allow interest-only during construction, then it switches to P&I. Worth mentioning if you’re buying land and building – Bankwest can fund that up to normal LVR limits. They’ll lend on land + construction together, usually up to 95% of the total package with LMI if eligible.

For owner-occupiers, most first-home buyers with Bankwest will choose the Complete Package for maximum savings and features. If you are extremely fee-averse and don’t need an offset, then the Simple Home Loan is a good alternative. The good news is even the basic loan has competitive rates and no nasty fees, so you have options at Bankwest to suit how hands-on you want to be with your loan. If you love the idea of optimising interest and micromanaging your finances, the package + offsets is brilliant. If you just want a set-and-forget low rate, the basic product delivers that, too.

Complete Package (Investment)

You can get a package loan for an investment property, too. The same $395 fee covers it, and you get offsets, etc. The interest rates for investors are a bit higher. For example, Bankwest’s Complete Variable investment loan might be around 6.3% at 80% LVR. They usually have different rate tiers for investment loans as well. Offsets are available for investment loans just like for owner-occupiers.

Bankwest will usually lend up to 90% LVR for investment (with LMI). Some banks restrict investment lending to 90% max these days; a few allow 95% with LMI for investment, but it’s case-by-case. Bankwest, in practice, is comfortable up to 90% for investment, maybe 95% if you have a strong case, but expect LMI and scrutiny

Simple Home Loan (Investment)

Similarly, the basic product for owner-occupiers can be used for investment. The rate will be higher than the owner-occ basic. Apart from higher interest rates, the structure of the loan is the same concept.

Interest-Only vs P&I

For investors, you might want interest-only to maximise tax-deductible interest and minimise outgoings. Bankwest offers interest-only home loans for up to 5 years, which can be renewable with re-approval. So you could possibly get up to 10 years total. However, keep in mind the following:

Interest-only for owner-occupiers is typically harder to get. Bankwest would question why you need it and usually only allow it if you have a specific reason, like planning to sell soon or during construction. If you do get it, it will usually be shorter term.
Interest-only for investors is more common. Bankwest will still require you to show that you can repay on a full principal and interest basis. They assess serviceability on the P&I repayments over the remaining term. The rate for interest-only is a tad higher.

One cool feature: If you have both your own home loan and an investment loan with Bankwest, and they are both package, you can offset owner-occupier offsets against the owner-occupier loan and the investment loan.

Refinance Options with Bankwest

If you already have a loan (perhaps with another bank) and are looking to refinance – or if in a few years after buying your first home, you want to switch to Bankwest for a better deal – what does Bankwest offer refinancing? A refinance to Bankwest would mostly get you the same competitive rates a new purchase customer gets. Always check if they have any current promo – sometimes lenders quietly bring back small cash bonuses targeted via brokers.

Debt Consolidation: Bankwest allows you to refinance and consolidate other debts (like personal loans and credit cards) into your home loan. They will make sure you have the equity and that it makes sense. They might also want you to close the paid-off facilities. This is pretty standard and not an issue if you qualify.

Bankwest is receptive to the Family Guarantee release refinance. For example, if you originally got a guarantor loan with CBA or another bank, and now your property value has increased, or you’ve paid down enough to remove the guarantor, you might refinance to Bankwest and fold the loan under just your name at 80% LVR. Bankwest can take that on. They even have forms for releasing a guarantor mortgage. Essentially, Bankwest could be the next step once you’re able to stand on your own without mum and dad’s property as collateral.

In summary, Bankwest’s product suite covers the needs of first-home buyers, whether you’re buying a home to live in, an investment, or refinancing an existing loan. The differences mainly lie in which features you opt for and ensuring you meet any product criteria.

Eligibility Criteria For A Bankwest Home Loan

Every lender has certain criteria you must meet to be approved for a home loan. Bankwest is no exception. As a first-home buyer, you should be aware of these requirements so you can position yourself as a strong applicant or identify any areas to work on before applying. The main eligibility points include age, residency status, income and employment, deposit, and credit history. Let’s break them down:

Stable Employment: Ideally, you should be in a stable job. Bankwest accepts full-time, part-time, self-employed, and even casual or contract work – but the length of time and consistency matter.

Self-employed: Bankwest usually requires at least two years of trading history. You’d need to provide the last 2 years’ financials, such as tax returns, profit/loss, etc. They also require you to have an ABN registered for 2 years, and GST registered if applicable. This is standard – most big banks have similar requirements for self-employed borrowers. Some specialty lenders allow 1 year or even alternative docs (low doc), but Bankwest is not a big low-doc lender these days.

Income Amount and Serviceability: Bankwest will calculate your borrowing capacity by taking your income, subtracting your living expenses and other loan repayments, and then adding a buffer to the new loan. They also consider the number of dependents (kids) you have, as that increases living expense assumptions. If you have two jobs, Bankwest can consider both as long as you have a history of each and it’s sustainable (e.g., a primary job and a consistent secondary job you’ve been doing for 6-12 months). If you’re a couple, both incomes are combined for serviceability.

Bonuses, Overtime, Commission: Bankwest will count these if they are regular. They may take an average of the last 6-12 months of overtime or commission and often use 100% of it if consistent (some banks use 80% to be safe). So, if you’re in a job like nursing with a lot of overtime, Bankwest can be favorable. They might require your employer to confirm that overtime is a normal part of your job and is likely to continue. Same with bonuses – they often want 2 years of evidence of bonuses and will average them. For Commission-based income-like sales roles, they’ll take a 2-year average.

Debt-to-Income (DTI) and other ratios: Bankwest, like others, will look at your DTI ratio (total loans ÷ gross income). While they haven’t published a hard cap externally, DTI above 7 or 8 can trigger extra scrutiny. If your DTI is above 9, it’s likely a no-go. The regulator APRA flags loans over DTI 6 as higher risk, so banks keep an eye on it. Try to keep other debts low to improve this.

Deposit & Loan-to-Value Ratio (LVR): How much deposit do you need for a Bankwest loan? The standard answer is 20% deposit to avoid LMI, but many first-home buyers don’t have 20%. Bankwest will lend up to 95% of the property value and, as we’ve noted, even allow that to reach 98%, including the LMI capitalised. So technically, you could buy with as low as 5% genuine savings plus costs.

Credit Score and Credit History: Bankwest will check your credit report. You don’t necessarily need a specific numeric score (like “must have 700+”), but you do need a clear credit history with no major red flags. Specifically:

No Defaults or Judgments: If you have any past loan or credit card defaults or court judgments for debt, that’s a big problem.
Repayment History: Under comprehensive reporting, Bankwest can see if you have had any late payments on other loans/cards in the past 2 years. It’s best to have at least 6-12 months of clean repayment history before applying for a home loan.
Credit Score: While not explicitly stated, a higher score helps. In Australia, a score above 600 is usually considered okay, above 700 good, and 800+ excellent (depending on the bureau). Bankwest likely uses Equifax and Experian data. If your score is low due to many recent credit inquiries or a thin file, it’s not necessarily an auto-decline but correlates with risk. Try to avoid applying for lots of unsecured credit in the lead-up to your home loan, as that lowers your score. We’ve seen people with dozens of buy-now-pay-later, and credit card inquiries raise eyebrows.

Existing Debts: They look at not just credit score but actual debts: how many credit cards and limits you have, personal loans, car loans, etc. Before applying, consider reducing your credit card limits if you don’t need them to be high. For example, a $10,000 limit card, even with zero balance, will typically be treated like a $300 monthly commitment. If you can drop it to the $2,000 limit, that frees up capacity.

Age and Legal Capacity: You must be 18 or older to get a loan. You also need to be an individual. Bankwest won’t do new home loans to companies or trusts if it’s a standard residential loan.

Australian citizen or permanent resident: You must be Australian to get a standard loan from Bankwest. If you’re a New Zealand citizen residing in Australia, they treat you similarly to a Permanent Resident. Temporary visa holders are generally not accepted by Bankwest for home loans.

Property Criteria: The property itself must be acceptable to Bankwest. This isn’t about you, but it can affect your eligibility to get the loan for that property. Bankwest will do a valuation and also has some restrictions:

They prefer standard residential properties (house, townhouse, unit). If you’re buying a very small apartment (smaller than 40m²), a rural property with lots of land, or a unique property (like a serviced apartment, student accommodation, etc.), Bankwest might decline or lower the max LVR. Bankwest lends nationwide, but if the property is in a very remote location or a town with a tiny population, the valuer might recommend a lower LVR or decline due to marketability. Most metro and regional centres are fine. Just something to consider if you’re buying out in the sticks – lending could be harder.

What Documents Does Bankwest Need For A Home Loan?

Be prepared to show:

Payslips: Bankwest typically wants your 2 most recent payslips (with year-to-date income showing). If YTD isn’t enough to cover an annual figure, they might ask for an employment letter or tax return/Group Certificate.
Bank Statements: Sometimes, they ask to see 3 months of bank statements where your salary is credited to verify consistency (and also to check living expenses and other loan repayments. Actually, Bankwest’s policy notes they often verify your main account transactions.
Tax Returns: If you have a bonus or commission, or if a new financial year started, last year’s Payment Summary or tax return can evidence total income.
Rental Income: If you’re using projected rent from the property or existing rent from an investment, they will usually take 75-80% of it in the calculation (leaving a buffer for vacancy and expenses). Bankwest specifically takes 100% gross rent input, and then the system applies a shading (likely 80%). They’ll want either a signed lease or a rental appraisal from a real estate agent for new properties.
Other income: They do count government payments like Family Tax Benefit if you have children, usually if the children are under a certain age and the income is ongoing. They’ll likely accept FTB A and B as income if kids under 11 or 13 years old. They also accept maintenance/alimony if it’s court-ordered and regular with bank statements evidence. If you have any unusual income, discuss it with your broker or Bankwest to see if it’s acceptable.
ID Documentation: Aside from income, you’ll need to provide identification (ID) documents such as a passport, driver’s license, Medicare card, etc, to satisfy Bankwest’s 100 points ID

Special Schemes and Incentives for First-Home Buyers

Buying your first home in Australia comes with some perks (thankfully!). There are government schemes to reduce the deposit hurdle and costs, as well as bank-specific incentives for certain buyer profiles. Here we’ll talk about how these apply with Bankwest:

First Home Owner Grant (FHOG): This is a government grant (not from the bank) available to first-time buyers who purchase a brand new property (newly built or substantially renovated) or build a home. The grant amount and rules vary by state:

In Queensland, for example, it’s $15,000 to buy or build a new home for under $750,000.
In NSW, it’s $10,000 for new homes under $600,00. Plus, they have other schemes like First Home Buyer Choice, a temporary stamp duty alternative.
Other states have similar $10k-$20k grants for new homes.

Be aware that Bankwest will ask if you’re a first-home buyer in the application and if you want to apply for the FHOG. They can often facilitate the FHOG application, especially if you do it via a broker or Bankwest lender. Make sure to mention it so they structure your loan correctly.

Stamp Duty Concessions: Each state has different thresholds:

NSW: Stamp duty is waived for first-home buyers on purchases up to $800,000 and discounts up to $1M.
VIC: No stamp duty up to $600,000, and reduced up to $750,000 for first home.
QLD: No stamp duty on homes under $500,000 for first-home buyers (and reduced up to $550,000). And even above that, you get a discount on the first $500,000 value for an established home.
WA, SA, etc., each have their own as well.

First Home Guarantee (5% Deposit Scheme): this is a federal government initiative to help first-home buyers purchase with a low deposit without paying LMI. Essentially, the government (through NHFIC/Housing Australia) acts as a guarantor for up to 15% of the property value, so if you have a 5% deposit, you can borrow 95%, and they guarantee the rest to reach 80%, loan-to-value ratio for the bank’s comfort. Unfortunately, Bankwest is not a participating lender.

Take advantage of these government incentives – they can save tens of thousands. Bankwest is fully supportive of these; just ensure all paperwork is in order. It’s wise to check your state government’s first-home buyer website for the latest details or ask your broker.

Family Guarantee (Bankwest's Family Security Support)

A family guarantee (also called a guarantor loan or Family Pledge) is when a parent or close family member uses the equity in their property to help secure part of your loan, so you don’t need as big a deposit and can avoid LMI. It’s a popular route for first-home buyers who have family willing and able to assist.

Bankwest offers this under their policy name “Family Security Support”. Here’s how it works with Bankwest:

A parent offers to use their home as additional security for your loan. They don’t actually pay anything; they just allow the bank to take a guarantee secured by a mortgage on their property for a certain amount, covering the shortfall in deposit.
Bankwest will split your loan into two parts: one secured against the property you’re buying (usually 80% of its value) and one secured against the guarantor’s property (the amount above 80%). For example, if you need to borrow 100% of the purchase price, Bankwest might do an 80% loan on your place and a 20% loan secured by mum/dad’s house. This way, your loan to value on the main property is 80%, so there is no LMI, and the remaining portion is secured by the guarantor’s equity.
With Bankwest, guarantor support is limited to immediate family, typically parents. The guarantor must have sufficient equity. Bankwest will require that the amount they guarantee is at most 50-70% of the value of the guarantor’s property.
The guarantor is only on the hook for the guaranteed portion, not the entire loan. Bankwest will cap the guarantee to a specific amount. They require the guarantor to seek legal advice and acknowledge the risk. They also ensure the guarantor understands they could lose their home if you and they fail to pay.
No LMI: Like any guarantor loan, the big benefit is avoiding LMI completely. You could borrow up to 100% with no insurance. This saves you potentially tens of thousands and also means you can buy sooner without a lengthy savings period.

Release of guarantor: Once you’ve paid down your loan or your property has grown in value such that your remaining loan is 80% or less of the property value, you can apply to Bankwest to release the guarantor’s mortgage. Bankwest will need a formal request and likely a new valuation to ensure the LVR is <=80%. It’s advisable to aim to release your parents within a reasonable time to free them from the obligation. Bankwest doesn’t automatically do it; you have to initiate when ready.

LMI Waivers for Professionals (Doctors & More)

Bankwest offers special privileges to certain professionals like medical doctors, accountants, lawyers, etc., because historically, these groups have lower default rates and strong incomes. The perk often given is an LMI waiver up to a certain high LVR and sometimes better interest rate discounts.

Who’s eligible? The list mainly encompasses registered medical practitioners. Bankwest’s list includes a wide array of doctors, such as:

General Practitioners,
specialists like cardiologists,
dermatologists,
surgeons,
dentists,
vets,
pharmacists
optometrists

They basically align with professions registered with AHPRA (Australian Health Practitioner Regulation Agency)

Bankwest does not offer LMI Waivers to nurses, psychologists, or other allied health like physios.

You’ll need to prove your profession. Typically, a copy of your registration (with AHPRA or veterinary board, etc.) or a letter from your employer or something showing you’re in that role. Usually, just a registration number suffices. Pharmacists might show degrees and current employment.

Case Study 1: Buying with a Small Deposit Using a Family Guarantee

Alex is a 27-year-old first-home buyer in Brisbane. He has been renting for a few years, and although he has saved about $15,000, that’s not enough for a 20% deposit on a house in his city. He’s eyeing a townhouse for $400,000. Ideally, he’d want to avoid paying LMI because that could be around $8,000 on a 95% loan.

Alex’s $15,000 is only 3.75% of the property price. Even with some stamp duty concessions as a first-time buyer in QLD, he’d need to pay costs and LMI if he went the traditional route. Another lender offered to do a 95% loan with LMI, but Alex would still be short on funds to cover stamp duty and legal fees without taking out a personal loan, which would hurt his home loan approval chances.

Enter the Family Guarantee solution: Alex’s parents own their home in Brisbane outright. They offered to help by using some of their home’s equity as security. Alex decides to go with Bankwest’s Family Security Support option.

Loan structure: Bankwest approves Alex for a $400,000 loan split into two parts:
- Loan A: $320,000 (80% of the purchase price) secured against the new townhouse.
- Loan B: $80,000 (the remaining 20%) secured by a limited guarantee on his parents’ property.

Alex actually ends up borrowing a little extra to cover stamp duty and fees – total loan came to $410,000. Bankwest was okay to do that as the guarantor covered the portion above 80%. The guarantor’s property guarantee was limited to $90,000 to cover that extra.

Because of the guarantee, Alex needed $0 from his own pocket at settlement. He kept his $15,000 for future expenses like furniture and an emergency fund. No LMI was charged, and he didn’t have to wait years to save a bigger deposit.

Two years later, thanks to market growth and Alex making extra repayments, the townhouse value rose to $440,000, and he had paid his loan down to $380,000. That put his loan at ~86% LVR. Using some bonuses from work, Alex paid it down to $352,000 (80% LVR of current value), and then Bankwest released his parents’ guarantee. The guarantee served its purpose as a “bridge” to help him get in the market. Now, his loan stands on its own, and his parents’ property is free from the bank. Alex avoided LMI, got into his home 2 years earlier than he otherwise might have, and is grateful to have had family support and a lender that facilitated the process smoothly.

Case Study 2: A Young Doctor Saving on LMI

Dr Emily, a 30-year-old junior resident doctor, is buying her first home in Sydney. The purchase price is $800,000 for a one-bedroom unit. Emily has managed to save about $80,000. On a normal loan, she’d be looking at a 90% LVR and a chunky LMI premium of maybe $20,000, given the loan size of $720,000.

Emily speaks to an expert mortgage broker who tells her that Bankwest doesn’t charge LMI for doctors up to 90-95% loans. The broker suggests Bankwest as a great option since they have a Medical Professionals policy. What Bankwest offered:

Up to 90% loan of the property value with no LMI for doctors. Emily qualifies as she’s a medical practitioner registered with AHPRA.
Additionally, Bankwest is willing to discount her interest rate a bit more, given her profession and the relatively large loan amount. She gets an offer for a variable rate of 6.00%.
Bankwest can lend the full 90%. Emily decides to actually borrow 88% and keep some of her cash for stamp duty. With no LMI, she doesn’t need to cap anything on top.

Emily goes with Bankwest and closes on the unit. She literally saved roughly $18,000 in LMI premium by virtue of being a doctor and choosing a lender that honors that.

She also opened a Bankwest Qantas Platinum credit card under the package to start earning frequent flyer points on her high daily spending as a doctor, and she set it to auto-pay from her offset to avoid interest. So, she’s maximising the perks.

The Bankwest Home Loan Application Process

Applying for a home loan can seem daunting, especially the first time. But it’s very much a step-by-step process. We’ll walk through the typical journey with Bankwest so you know what to expect at each stage.

Step 1: Pre-Approval (Getting "House Hunting" Ready)

Pre-Approval (aka Conditional Approval or Approval-in-Principle) is the initial green light from the bank before you’ve found a property. How to get pre-approved with Bankwest:

You can go directly via Bankwest (online or through a mobile lender) or through a mortgage broker who will lodge the application on your behalf. Either way, you’ll need to provide your financial details and documents. A broker can also compare Bankwest with others, but if you’re set on Bankwest, they’ll help package it right.

Bankwest will do a credit inquiry and check your score/report. This is part of the pre-approval process – so ensure your credit file is in order beforehand. A Bankwest credit officer will assess your application. If all is good, you receive a Pre-Approval Letter.

Bankwest’s pre-approvals are typically valid for 90 days (3 months). You can often extend it with updated info if you need more time house-hunting.

Step 2: Finding a Property & Making an Offer

With pre-approval sorted, you can find the property you want! Here’s what to do next:

Property Search: As you find a place, double-check with your broker or Bankwest if there are any concerns with that type of property

Negotiate Price: You negotiate the purchase price with the seller or via the real estate agent.

Sign the Contract: Once your offer is accepted, you’ll sign a contract of sale. In many states (like QLD and NSW for private sales), there is a cooling-off period after signing, usually 5 business days, during which you can cancel (with maybe a small penalty of 0.25% in NSW or similar).

Pay Deposit: Typically, upon signing a contract, you pay the balance of the deposit, often 5% or 10% of the purchase price (minus any holding deposit already paid). This goes into a trust account (usually held by the real estate agent or conveyancer) until settlement. You should engage a conveyancer or solicitor to handle the contract, do title searches, and coordinate settlement. At this stage, you have a signed contract – congrats, you’re on your way! But now the clock is ticking to get your formal loan approval before the finance deadline or before settlement.

Step 3: Formal Application & Document Submission

Now, you go back to Bankwest with the details of the property. This is often referred to as moving from “pre-approval” to “unconditional (formal) approval”. Many steps here will already be underway if you had pre-approval, but let’s outline:

Update/Complete the Loan Application: Provide the signed contract of sale to Bankwest. If anything has changed in your situation since pre-approval, inform them because the figures might need updating.
Property Valuation: Bankwest will arrange a valuation on the property you’re buying. Often, they use independent valuers.
Any Remaining Documents: If during pre-approval you hadn’t provided something or if they now need something new you’ll supply those. A common extra doc at this stage is proof of insurance.
LMI Approval: If your loan is greater than 80% and requires LMI, Bankwest will also get the mortgage insurer’s sign-off. The insurer basically double-checks the application to ensure it meets their criteria, too.
Unconditional (Formal) Approval: Once all the above is done and satisfactory, Bankwest will issue a Formal Approval Letter. This is the big YES, which means the loan is fully approved. From this point, the only things pending are the paperwork and settlement steps – the credit decision is behind you.

At this stage, do a little happy dance – one of the biggest hurdles is crossed! Often, first-home buyers feel a huge relief here, as they now know the money is secured.

Timing: Typically, from when you submit the signed contract to formal approval, it can take anywhere from 2 days to 2 weeks, depending on how complete your application is and how quickly valuations and LMI come through. We often see it done in 3-5 business days with Bankwest if pre-approval was in place. Always communicate any finance deadline to your banker/broker – they will prioritise if they know you have, say, a 14-day clause.

Step 4: Settlement & Post-Settlement

Settlement is the day you finally get the keys! Here’s the wrap-up:

Before settlement, you need to make sure your deposit balance is sorted. Your solicitor will usually give you a settlement statement showing what you need to pay. You’ll then need to have those funds ready – typically, you transfer them to the solicitor’s trust account or sometimes directly to the bank a few days before settlement. With Bankwest, you can often deposit your funds into your new Bankwest offset account so that at settlement, the bank can draw the funds from there. If using a guarantor and you weren’t paying a cash deposit, you might actually not have much to pay except maybe stamp duty. Sometimes, in guarantor scenarios, they even lend for stamp duty. But you might at least pay some costs out of pocket.
On Settlement Day: The bank (Bankwest), your solicitor, and the seller’s solicitor meet (these days electronically via PEXA in most states, or physically in some cases) to exchange documents and money. Bankwest will provide the loan funds based on the loan amount. The contribution you made up will be added. The seller gets their cheque for the remaining balance of the purchase price. The title is transferred to your name, with Bankwest’s mortgage recorded on it.

You usually don’t attend settlement physically – your conveyancer handles it. You’ll get a call or email when settlement is complete: “Congratulations, you are now the owner!”

To sum up the process: Pre-approval → Property → Formal approval → Loan documents → Settlement.

After Settlement

You can collect the keys to the property either from the real estate agent or the seller’s solicitor, depending on the arrangement. Bankwest will send you a welcome pack confirming your loan is now drawn down. Your loan account will be set up in online banking. If you got an offset account or credit card, those will be active now too.
Your repayments will typically start one month after settlement. If you chose weekly/fortnightly, the first payment date will be set accordingly. Bankwest will direct debit your chosen bank account. Make sure to have funds ready for the first payment.
If you had LMI, the LMI premium is usually added on top of the loan at settlement. So don’t be surprised if your loan amount is slightly higher than the property price minus the deposit. That’s the LMI. It’s financed, and you’ll pay it off as part of the loan.
If you have any queries or issues (e.g., you notice the interest rate is not what you expected), raise it ASAP. Sometimes the rate might differ if they didn’t apply a package or special. Bankwest’s customer service or your broker will help fix any discrepancies.

Maintaining your loan

You might want to consider annual reviews of your rate. Don’t hesitate to ask for a better deal from Bankwest after 1-2 years if needed – or use a broker to negotiate – banks often have retention teams to offer rate discounts to keep you.
If your fixed rate period will end later, diarise 2 months before to talk to Bankwest about retention offers or to consider refinancing if needed. They often send offers to refix or roll to package variable.

Pros and Cons of Bankwest Home Loans

No lender is perfect, and the right choice depends on your individual needs and circumstances. Let’s break down the advantages and disadvantages of Bankwest home loans for first-home buyers:

Pros:

Competitive Interest Rates: Bankwest often offers lower variable rates than the big 4 banks for comparable loans. This can mean lower monthly repayments and interest savings over the life of your loan. First-home buyers who are rate-sensitive will appreciate that Bankwest frequently comes up as one of the more affordable options among major lenders.
Flexible Loan Features (Great for Savers/Budgeters): The ability to have up to nine offset accounts on a variable loan is a standout feature. This helps you organise your money while still saving interest. Additionally, Bankwest’s unique 40% offset for fixed loans gives you flexibility if you want to fix your rate but not lose all offset benefits.
Low Deposit Options & High LVR Lending: Bankwest is willing to lend up to 95-98% LVR with LMI, which is great for first-home buyers with limited deposit. And if you have a guarantor, Bankwest actively supports that route. This means you could buy with virtually no deposit and no LMI. Their credit policy flexibility in this area is a big pro – they don’t force everyone to have 20% down.
No LMI for Medicos: If you’re a young doctor or medical professional, Bankwest’s LMI waiver of up to 90% LVR can save you thousands. They welcome professionals with special deals, which is a pro if you’re in that category.
Strong Digital Banking Experience: From the application process – online document submission, etc to everyday banking, Bankwest is technologically up-to-date. Their app and online banking are easy to use for managing your loan and offset accounts. You can do things like redraw or split your loan relatively easily. For a generation of first-home buyers who do everything on their phone, this is important.
Customer Service and Satisfaction: Bankwest often scores well in customer satisfaction surveys, and many customers report positive experiences, especially with their friendliness and responsiveness. As a smaller, big bank, you might get more of a personal touch than with a huge bank where you’re one of millions of customers.
Part of CBA Group (Stability): While Bankwest isn’t as large as CBA itself, being part of the Commonwealth Bank Group means it has solid backing and stability. Your loan is with a well-capitalised institution. Also, being CBA-owned, Bankwest loans might have a smoother process if you ever wanted to switch to CBA or vice versa.

No Ongoing Fees on Basic Products: If you opt not to take the package, Bankwest’s basic home loan has no annual or monthly fees, which is a pro for those who want absolutely minimal costs. Even with the package, the fees are standard and often offset by the savings you get.

Cons:

Limited Branch Network (especially outside WA): If you prefer face-to-face service or need to bank in-branch, Bankwest has fewer branches, mostly concentrated in Western Australia. In the eastern states, they have a handful of Bankwest-branded stores and rely on digital channels. While you can use CBA branches for some basic transactions, you generally can’t go see a Bankwest home loan manager in every suburb like you might with CBA/Westpac.
Not a First Home Guarantee Lender: As discussed, Bankwest does not directly participate in the government’s First Home Guarantee (5% deposit, no LMI) scheme. So, if you were counting on using that scheme, you’d have to choose a different lender, at least for now.
No Special Deals on Fixed Rates (Package Discount is Small): Bankwest’s fixed rates are competitive, but the package discount on fixed is only 0.15%, which isn’t huge. And the comparison rate on fixed loans is high, indicating a big revert rate. In essence, if you fix with Bankwest, make sure to plan for refinancing or negotiating at the end of the fixed term because the revert variable rate might not be as good.
Strict Genuine Savings for High LVR: If you don’t have a guarantor or scheme, Bankwest expects genuine savings for >90% LVR loans. Some other lenders might be a bit more lenient, but Bankwest follows the typical genuine savings rule. So if you got your 5% deposit as a last-minute gift and you haven’t saved anything yourself, Bankwest might not approve unless you go the guarantor route.
Package Fee (if not maximised): While $395/year is standard, it is still $395/year. If you have a smaller loan, the package’s value might not be as great. Also, Bankwest charges $10/month for offset on basic loans, which could be seen as a con. In short, if you really want an offset but hate annual fees, Bankwest’s basic loan offset fee might annoy you. But again, this is typical – other banks either charge monthly or annual, and Bankwest at least gives the option.
Potentially Conservative on Unique Properties: Bankwest can be a bit conservative on apartments in certain high-density areas. For example, they might restrict lending on very small units or in saturated postcodes. If the only thing you can afford is a tiny studio in the city, you might find Bankwest limits LVR or says no. Another lender, like a specialist, might do it. However, for most standard properties, this is not a problem.
No Offset on Fixed Loans (unless you pay for package and get 40% offset): While 40% offset on fixed is a plus, it’s not a full offset. If having a full offset on a fixed loan is really important, Bankwest’s 40% might feel limiting. For most, this isn’t a huge con, as few banks have any offset on fixed to begin with.
LMI Provider Limitations: If you’re not a doctor or using a guarantor and need LMI, note that QBE LMI (Bankwest’s insurer) might have slightly different acceptance criteria than another insurer. Occasionally, we’ve seen cases where one LMI provider declines a scenario that another might accept. But effectively, Bankwest’s decision could be subject to a second opinion by QBE. At big banks like CBA or Westpac, they use their captive insurers or have more sway.

After weighing these, you may find that the pros outweigh the cons with Bankwest – especially the lower rates, offset flexibility, and deposit-friendly options. The main downsides, like fewer branches or not being in the government scheme, can often be managed or are non-issues for a lot of people.

It’s always wise to compare at least a couple of lenders. But if you value what Bankwest offers and their cons don’t bother you, they can be an excellent choice for your first mortgage.

Frequently Asked Questions (FAQs)

Can I get a Bankwest home loan with a 5% deposit?

Yes, it’s possible to get a Bankwest loan with a 5% deposit, but note that normal Lenders’ Mortgage Insurance (LMI) will apply since you’d be borrowing 95% of the property value.

What income do I need to get approved by Bankwest?

There isn’t a specific dollar figure of income required; it depends on how much you want to borrow and your other financial commitments. Bankwest will assess your serviceability by looking at your income versus your expenses and debts.

Does Bankwest offer loans to casual or self-employed first-home buyers?

Yes. Bankwest will work with various employment types, including casual employees and self-employed individuals:

How does Bankwest compare to CBA (CommBank) for first-home buyers?

Bankwest and Commonwealth Bank are part of the same corporate family but have different products and pricing.

How long does it take to get approved and settle with Bankwest?

The timeline is comparable to other lenders, but let’s break it down: Pre-approval a few days, formal approval within a week of lodging full details, and settlement on your contract’s schedule (often 4-6 weeks from contract date).

What if my circumstances change after I get the loan? (e.g., job change, having a baby)

In essence, after settlement, Bankwest doesn’t monitor your employment status actively – they only care that repayments are being made. So, if you foresee difficulty, reach out to them. They have options like repayment holidays and hardship variations to assist.

Conclusion & Next Steps

Buying your first home is a big step – but with the right information and support, it’s absolutely achievable.

Ready to take the next step? Get in touch with us for your free assessment or to ask any questions. As a first-home buyer, you’ll likely have questions unique to your situation – we’re happy to answer those and guide you on the path to owning your first home.

Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible.

If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.

Bankwest Home Loans Review: The Ultimate Guide for First-Home Buyers in Australia

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