Capped Rate Home Loan

There are probably scores of people across Australia, who 18 months ago, figured that getting a fixed rate home loan seemed like a fairly good option. 18 months on, those people will be kicking themselves at the thousands of dollars they will have lost... Rates are on the move again, but this time they're on the rise. People are no longer speculating when rates will rise but rather how high they will now climb.

A new product from Bankwest heralds a new style of home loan that benefits the customer no matter what's happening with market rates. It's called the Bankwest Capped Rate Home Loan. It is essentially a variable home loan so you pay less when rates go down, and in the event that rates rise duringthe capped period you're guaranteed not to pay more than the capped rate....

The home loan is also competitively priced. At 30 September 2009 the variable rate was 5.40% and the capped rate is 7.50% p.a. The capped preiod expires on 10 November 2012.

Dean Gillespie, Bankwest's Had of Mortgages said "This product has been specifically designed to offer customers the opportunity to make the most of the current low interest rates, whilst the cap will provide peace of mind for when rates inevitably start to rise".

"This new offering underlines Bankwest's ongoing committment and determination to provide Australians with more choice by increasing competition in the mortgage market", he said.

For many people, choosing between fixed and variable can be a difficult decision but this new home loan provides the advantages of both.