This is a good way to save on home loan interest with minimal effort.
Here’s the maths behind it. Interest is calculated daily and raised monthly on your due date every month. If you split your monthly repayments into two fortnightly repayments, or even four weekly repayments, you’re making repayments on your loan more frequently. This means the balance we calculate your interest on every day will be lower.
An added bonus for anyone who gets paid weekly or fortnightly is that your loan repayments can be more aligned to your pay cycle, which can help when budgeting.
Keep in mind that if you’re paying interest only on a Bankwest home loan, you can only make monthly repayments.
An offset account is a bank account that’s linked to your home loan. You can use it like any normal transaction account, but the balance in it ‘offsets’ the amount you owe on your home loan. The interest you pay on your home loan is calculated on this reduced amount. The more you have in your offset account each day, the more interest you could save.
See some tips to help you make the most of an offset account.
The more you pay off, the less interest we’ll charge on your home loan. Even if you make a small extra repayment to your loan every week, the savings can be huge. But don’t just take our word for it – crunch the numbers yourself on our extra repayments calculator to see how much money and time you could save by paying more off your home loan.
What’s more, with a Bankwest home loan, you can access your extra repayments if you need money down the track – also known as redraw.
If you’re worried about fluctuating interest rates, you could choose to fix a portion of your home loan for an agreed term of one to five years while keeping the rest variable for extra flexibility. One great benefit of a fixed rate loan is that your repayments won’t change for the entirety of the fixed term, which can help you to budget.
Our Complete Fixed and Complete Variable Home Loan Packages let you split or switch between fixed and variable any time with no transfer fee. Keep in mind that other fees and charges, such as break fees on a fixed rate loan, may apply.
Our Home Lending Specialists can help you work out if splitting your loan is the right option for you.
Get in touch with a Home Lending Specialist, and they’ll respond within one business day. You can talk on the phone, meet at a branch, or have a Mobile Lending Manager come to you.