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Premium Select Home loan

Posted by LouS LouS
Message 1 of 6 2,076 Views

We've just received a letter from Bank West to say our interest has been increased.  We have a "Premium Select" mortgage..

 

On the Bank West site, "Premium Select" is touted as "Receive a flexible, discounted variable rate with the Premium Select home loan"

 

I'm not able to find anything on the site specifiying the % discount, but our records show the discount is supposed to be 0.8% for the life of the loan.  The  "Premiumm Select" discount is supposed to be off the "Variable Rate Home Loan" - currently 4.24% (4.26% Comparison).

 

So the discounted "Premium Select" should be less than 4.24% - in fact  (4.24% - 0.8%) = 3.16%

 

 

Our mortgage is (always has been) "Premium Select" but we've been advised that our rate has just gone up to 4.24%.

 

So Bank West people, why am I not receiving a discount please?  Or am I not understanding the advertised products?

 

Is anybody else in the same situation?

 

Cheers

Lou S

 

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Re: Premium Select Home loan

Posted by DanaeC DanaeC
Message 2 of 6 2,066 Views

Hi @LouS, thanks for reaching out.

While I'm unable to view your contracts or account specifically, hopefully I can help clear up any confusion regarding the discount here.


The Premium Select Home Loan offers a discount off of the Bankwest Standard Variable Rate - which is a different rate to that listed on the product overviews of each loan type. It will vary based on a number of factors - you can view the details here.

 

If you'd like to have this calculated or discuss the account further, you can log in to Online Banking and select "Ask Us" via the Mobile App menu or "Message us Now" from a PC, where our Online Team would be happy to help out. Alternatively, you can give us a buzz on 13 17 19 - both services are available 24/7 for your convenience. 

Thank you.

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Re: Premium Select Home loan

Posted by LouS LouS
Message 3 of 6 2,049 Views

Hi DanaeC

Thank you for the response.  It is the same as the advice I've received from staff at the bank.  However that is not the information provided on the Bankwest web site.  Please have a look at this page.  https://www.bankwest.com.au/personal/home-loans/variable-rate.   

 

The page is headed Variable Rate Home Loan (VR).   Below that heading, the content reads Receive a flexible, discounted variable rate with the Premium Select home loan (PS). For anyone reading that, the implication is that the VR and the PS are different products - along the lines the VR is one rate but you can do even better with the PS.

 

 

Importantly, please refer to your own response on ‎30-04-2018 01:17 PM under the post Re: Variable Rate Home Loan and premium select home loan.  The initial question that you responded to was to seek clarification why the two rates differ.

You, yourself, explain why there is a difference between the Variable Rate Home Loan  versus the premium select home loan.  You specify various conditions that result in the PS being a discounted rate and given the content of your response, it promotes the PS versus the VR  -  there is absolutely no reference to the PS being a reduced rate by comparison with the Bankwest Standard Variable Rate (SR) rate.

 

In fact, after checking the Bank West web site, the only mention of a discounted rate being available via the PS product is on the page that expains the VR product.  I have not a been able to find anywhere whre the PS details state that its a rate that is discounted by reference to the SR.

 

The responses from the bank staff made the point that all the conditions are in the loan contract document that we signed and accepted.  Yep, they're right.

 

But given the way the web site promotes the PS (without any reference to the SR), it could very easily be argued the statement The Premium Select Home Loan offers a discount off of the Bankwest Standard Variable Rate is part of the fine print - something that's there but not really referred to until its needed to justify a particular action.

 

And here's the real kick in the teeth from Bankwest - the PS for loyal customers, like us, is .23% higher than it needs to be - why?  For new borrowers, the bank can afford to offer 4.01% (with no reference to any time limits as to when this comparatively lower rate expires).  So new customers, today, will forever pay .23% less than long term loyal customers like us.

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Re: Premium Select Home loan

Posted by DanaeC DanaeC
Message 4 of 6 2,041 Views

Thanks for coming back to us @LouS.

 

The post that you've referred to asks why the interest rates are different - which is indeed based on a number of factors, such as those I've mentioned. While we have a number of Home Loan products with a Variable Rate, the Premium Select Home Loan itself is listed on the website as the "Variable Rate Home Loan". I'm very sorry if you feel that the information shown is misleading, though I can assure you this is not our intention, and I have passed this on as feedback.

 

The Key Facts Sheet for the Premium Select Home Loan is available via the link you've provided - I've included it for you here.

 

You're also welcome to have your rate reviewed at any time, by calling our Customer Options Team on 13 17 19 between 7am - 5pm AWST Monday - Friday.

Thank you.

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Re: Premium Select Home loan

Posted by Blueh33ler Blueh33ler
Message 5 of 6 1,283 Views

I had the same issue with my home loan interest rate. My interest rate was acceptable, but when saw I was being charged 4.24 +,

Many other banks have their 'basic' standard general loan rates at least 0.75 points below ,so i thought of asking whether i could match the rate, or what could Bankwest do about this.

I contacted back in Dec/Jan.  The customer rep i spoke to was rude and said that the rate was correct as my rate is ties to the cost of the money of the loan the bank made to obtain finance for my loan....yes I was following. 

In the end she said basically suck up the interest rate.

So i was am still are quite unsettled and disappointed in the way that a customer of 8 years was treated. 

 

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Re: Premium Select Home loan

Posted by DanaeC DanaeC
Message 6 of 6 1,275 Views

Hi there @Blueh33ler, sorry to see this.
If you could please send your full name, Forum username and best contact number to Forum@Bankwest.com.au, we'll get in touch to look into this and discuss your concerns further.

Thank you.

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