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Bankwest has launched a new home loan which offers borrowers an increasing discount on their interest rate the longer they stay with the loan.
The new Rate Cutter Home Loan will “get better with age” according to the bank, offering customers up to 0.80 per cent off the standard variable rate if they keep the product for at least four years.
An initial discount of 0.40 per cent will apply to all Rate Cutter customers in the first year 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.
Bankwest head of mortgages Dean Gillespie said more customers were keeping their loans with the bank for longer periods and as a result the bank decided it was appropriate to give something back.
“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 with an average $285,000 loan would save $5,510 at the end of the first four years of their loan if they take out the Rate Cutter product.