Bankwest Home Loan Review: A Complete Guide for Homebuyers
Choosing the right home loan can feel overwhelming, especially with so many banks and lenders competing for attention. Among Australia’s well-known financial institutions, Bankwest stands out as a popular choice for both first-home buyers and seasoned property investors. In this Bankwest home loan review, we’ll dive deep into the features, pros and cons, interest rate options, eligibility, and customer experience. By the end, you’ll have a clear picture of whether Bankwest aligns with your borrowing needs and how it compares to competitors in today’s market.
Who is Bankwest?
Bankwest is a well-established Australian bank that has been operating since 1895. Originally founded in Perth, the institution has grown nationwide and is now a division of the Commonwealth Bank of Australia (CBA). This backing provides stability, while still allowing Bankwest to maintain its distinct customer-focused approach.
Bankwest has positioned itself as a digital-friendly lender, offering competitive mortgage products along with user-friendly online and mobile banking tools. The bank serves a wide customer base, including:
Borrowers needing split loan or offset account features
First-home buyers seeking government-backed schemes
Homeowners looking to refinance for better rates
Investors wanting flexible repayment structures
Types of Bankwest Home Loans
Bankwest offers a range of mortgage options to suit different financial goals. Below, we break them down by type:
1. Variable Rate Home Loans
A variable rate loan fluctuates with the market and the Reserve Bank of Australia’s (RBA) cash rate. Bankwest’s variable loans include:
- Complete Variable Home Loan Package – Comes with an offset account, fee waivers, and flexible features.
- Premium Select Variable Home Loan – A no-frills option with competitive rates, but fewer extras.
- Why choose this? Variable loans suit borrowers who value flexibility and the potential to benefit from interest rate cuts.
2. Fixed Rate Home Loans
Bankwest allows borrowers to lock in an interest rate for 1–5 years. This ensures repayment certainty. Once the fixed term ends, the loan typically reverts to a variable rate.
Benefits:
- Stability in budgeting
- Protection against rising interest rates
- Ability to split part of the loan as fixed and part as variable
3. Split Home Loans
A split loan combines fixed and variable portions. This means part of your loan enjoys fixed repayments while the other part can benefit from rate drops.
Example: You may fix 70% of your loan and leave 30% on variable.
4. Investor Loans
For property investors, Bankwest provides interest-only repayment options. This can help maximise tax-deductible interest, particularly in the early years of an investment property loan.
5. Green Home Loan Options
Recently, Bankwest has shown commitment to sustainability. Borrowers who build or purchase energy-efficient homes may qualify for discounted interest rates.
Key Features of Bankwest Home Loans
Bankwest mortgages come with a variety of features designed to suit different lifestyles and financial goals.
Offset Accounts
Most package loans include a 100% offset account, which reduces interest payable by linking your savings directly to your mortgage.
Redraw Facility
Borrowers can access extra repayments through redraw, giving flexibility in case of unexpected expenses.
Package Benefits
Some loans come bundled with fee waivers on credit cards, discounts on insurance, and waived annual fees.
Online and App Management
The Bankwest mobile app is frequently praised for its easy navigation, making loan management seamless.
Flexible Repayments
Borrowers can choose between weekly, fortnightly, or monthly repayments, which helps reduce interest costs over the life of the loan.
Bankwest Home Loan Interest Rates
Interest rates vary depending on loan type, loan-to-value ratio (LVR), and borrower profile. As of recent updates, Bankwest’s rates are generally competitive compared to the Big Four.
Comparison Snapshot (example purposes):
| Loan Type | Starting Rate (p.a.) | Comparison Rate* | Key Features |
| Complete Variable Home Loan | ~6.10% | ~6.45% | Offset, redraw, package perks |
| Premium Select Variable | ~5.99% | ~6.01% | Basic, no ongoing fees |
| Fixed 2-Year | ~6.40% | ~6.50% | Rate lock, repayment certainty |
| Investor IO Loan | ~6.60% | ~6.90% | Interest-only options |
(*Rates are indicative and may change. Always check current Bankwest rates directly.)
Pros and Cons of Bankwest Home Loans
✅ Pros
- Wide choice of mortgage products
- Strong digital tools and mobile app
- Package loans with valuable extras
- Competitive rates for basic loans
- Backed by Commonwealth Bank for stability
❌ Cons
- Not always the absolute lowest rates on the market
- Package fees may reduce savings for smaller loans
- Limited physical branch access outside WA
- Fixed loan break costs can be high
Who Should Consider Bankwest Home Loans?
Bankwest loans suit borrowers who want a balance between digital convenience and established banking security.
- First-Home Buyers: Government scheme participation + low-deposit options
- Refinancers: Competitive variable rates + offset features
- Investors: Interest-only and flexible repayment structures
- Eco-conscious borrowers: Discounts for energy-efficient homes
Step-by-Step: How to Apply for a Bankwest Home Loan
Applying for a Bankwest mortgage involves several steps:
- Compare loan options – Decide whether variable, fixed, or split works best.
- Check your borrowing power – Use tools like our loan calculator to estimate repayments.
- Get pre-approval – Submit basic financial information to see your borrowing capacity.
- Gather documents – Income statements, payslips, ID, and expense records.
- Submit full application – Online or through a mortgage broker.
- Valuation & assessment – Bankwest assesses property value and application.
- Approval & settlement – Once approved, settlement occurs with your conveyancer/solicitor.
Customer Experience and Reviews
Customer reviews of Bankwest are mixed, but overall positive. Many highlight the ease of using the app, helpful customer service, and competitive packages. However, some borrowers note that approval times can vary, and communication sometimes depends heavily on the broker used.
Alternatives to Bankwest Home Loans
While Bankwest is competitive, it’s always smart to compare with other lenders. Popular alternatives include:
Smaller Credit Unions – May offer lower fees for local borrowers
Commonwealth Bank – Wide branch network, strong tools
ING – Known for online efficiency and sharp rates
Macquarie Bank – Investor-friendly, competitive packages
Frequently Asked Questions (FAQs)
1. Is Bankwest a good bank for home loans?
Yes, Bankwest is considered a solid choice due to its competitive rates, flexible features, and backing by the Commonwealth Bank.
2. Does Bankwest have an offset account?
Yes, most package loans include a 100% offset account.
3. Can I make extra repayments on a Bankwest fixed loan?
Yes, but limits apply. Typically up to $10,000 per year without penalty.
4. What is the minimum deposit required?
Generally, Bankwest requires at least 5–10% deposit, though this varies with LVR and borrower profile.
5. Does Bankwest offer low-doc loans?
No, Bankwest focuses on standard income-verified loans rather than low-doc lending.
6. Can I switch from variable to fixed with Bankwest?
Yes, borrowers can apply to switch, but break fees or administrative costs may apply.
7. Is Bankwest good for refinancing?
Yes, many refinancers choose Bankwest due to offset accounts and competitive variable loans.
8. Does Bankwest offer interest-only loans?
Yes, particularly for investors. These usually have stricter lending criteria.
9. How long does Bankwest loan approval take?
Approval times vary but typically range from a few days to several weeks depending on application complexity.
10. Are Bankwest home loan rates the lowest in Australia?
Not always. While competitive, other lenders sometimes undercut Bankwest’s rates, so comparing lenders is crucial.
Conclusion
Bankwest offers a well-rounded selection of home loan products, ranging from flexible variable packages to budget-friendly basic loans. Their strong digital presence, combined with the security of being part of the Commonwealth Bank, makes them appealing to many Australian borrowers. However, fees, approval times, and the possibility of lower rates elsewhere should also be considered.
