Bankwest Home Loan Rates 2026: Variable & Fixed Comparison

Bankwest’s Simple Home Loan offers a competitive 5.94% p.a. variable rate, undercutting most major competitors. This guide examines Bankwest’s current rates, fees, and features to help you decide which product suits your situation.

Number of home loan products: 4 main types ·
Year established: 1985 ·
Parent company: Commonwealth Bank

Here are the key facts about Bankwest home loans.

What is Bankwest’s variable home loan rate?

Current variable rates for owner-occupiers (principal & interest)

Bankwest’s published rates page shows owner‑occupier principal‑and‑interest variable rates starting at 6.44% p.a. for borrowing up to 60% LVR and 6.49% p.a. for 60.01%–80% LVR (Bankwest – official rates). For borrowers who want a lower headline rate, the Bankwest Simple Home Loan (owner‑occupied, new lending ≤60% LVR) offers 5.94% p.a., with a comparison rate of 5.97% p.a., according to InfoChoice data (InfoChoice – comparison).

Rates are for principal‑and‑interest repayments; interest‑only options carry reference rates of 9.35% p.a. for owner‑occupiers (Bankwest – reference rates).

• Owner‑occupier variable (≤60% LVR): 6.44% p.a.
• Owner‑occupier variable (60–80% LVR): 6.49% p.a.
• Simple Home Loan (≤60% LVR): 5.94% p.a. (comp. 5.97%)
• Complete Variable (≤60% LVR): 5.94% p.a. (comp. 6.34%)

Variable rates for investors

Bankwest sets an Investor Variable Reference Rate of 9.65% p.a. and an investor interest‑only reference rate of 9.78% p.a. (Bankwest – reference rates). Actual rates offered to investors will depend on LVR and loan size, but these reference rates underline that investment loans come at a premium.

Comparison with Bankwest fixed rates

Bankwest also offers fixed‑rate terms of 1, 2, 3, and 5 years. Fixed rates are typically higher than the variable offers during a rate‑cut cycle, but they provide certainty. According to Finder (home loan comparison site), Bankwest’s fixed rates vary by term and are available for both owner‑occupiers and investors.

The implication: Bankwest’s variable range has a compelling entry point at 5.94% p.a., but the complete picture requires weighing fees, offset features, and the rate lock option.

Which bank has the lowest home loan interest rate?

Comparison of major banks’ variable rates

No single bank consistently holds the lowest rate for all borrowers. For owner‑occupier P&I loans ≤80% LVR, the four major banks (CBA, Westpac, NAB, ANZ) typically advertise variable rates between 6.1% and 6.6% p.a., though many offer lower “offset” or “package” rates that come with annual fees. Bankwest’s Simple Home Loan at 5.94% p.a. undercuts these majors when no offset is needed (InfoChoice – comparison data).

Bankwest vs other non-major lenders

Non‑major lenders such as ING, ME Bank, and Bendigo Bank often compete near the 6% mark. Bankwest’s Simple Home Loan is among the few without an application or annual fee, which makes the advertised rate stick closer to the real cost. Fees matter – Bankwest charges a $395 annual fee on its Complete Variable package, an offset facility fee of $10 per month, and a $250 settlement attendance fee (Compare the Market – fee schedule). The comparison rate already includes most fees, so it’s the figure to compare across lenders.

The catch: the lowest rate often comes with trade‑offs – no offset account, limited redraw, or stricter eligibility. Bankwest’s Simple Home Loan is cheap but bare‑bones.

Is Bankwest a good bank for mortgages?

Pros of Bankwest home loans

• Multiple product types: variable, fixed, split, investment, construction, guarantor, bridging (Compare the Market – product range)
• Unlimited extra repayments and fee‑free redraw on variable loans (InfoChoice – features)
• Offset account available (Complete Variable and some packages) for a monthly fee
• Rate lock option to secure a rate during application processing

Cons of Bankwest home loans

• Limited branch network compared to big four – mostly concentrated in Western Australia
• Customer satisfaction scores from independent surveys are mixed; some complain about slow turnaround times
• Offset facility incur a $10/month fee per account (Compare the Market – offset fee)
• Higher reference rates for interest-only loans (9.35% p.a. for owner‑occupiers)

Customer reviews and independent ratings

Independent comparison sites like Finder (banking comparison platform) note that Bankwest offers competitive rates but warn about the offset fee. InfoChoice data shows the comparison rate on the Complete Variable jumps from 5.94% to 6.34% once fees are included, which is still competitive but not as sharp as the headline suggests.

Why this matters: the decision comes down to your repayment habits. If you maintain a large offset balance, the monthly fees can offset the rate advantage.

Will interest rates drop to 3% again?

RBA cash rate history and current cycle

The RBA lifted the cash rate from 0.10% in May 2022 to 4.35% by July 2023 and has held it there through 2024 (RBA – cash rate history). A return to 3% would require multiple cuts of 0.25% each. Most economists see 3% as possible only if inflation drops sharply and unemployment rises.

Market forecasts for 2025-2026

Forecasts from major banks suggest the RBA may start cutting rates in late 2025, with the cash rate potentially reaching 3.5% by end of 2026. According to Finder (economic panel survey), the majority of experts predict cuts but not a return to the emergency‑low 0.10% level. A return to 3% is considered possible but not probable in the next two years.

Impact on variable home loan rates

If the RBA cuts, lenders typically pass on the full reduction to variable rates within days. That means a Bankwest variable borrower could see their rate drop from 5.94% to around 5.5% after two 0.25% cuts. Fixed rates, however, are more forward‑looking and may already price in expected cuts, making them less responsive to official moves.

The pattern: borrowers who believe rates will fall sharply may prefer a variable product to capture those cuts; those who want protection from ongoing uncertainty may accept a slightly higher fixed rate.

Should I fix for 2 or 5 years now?

Pros and cons of fixing for 2 years vs 5 years

Fixing for 2 years gives you near‑term certainty at a rate that may be close to the current variable level, while allowing you to switch to a variable when rates are expected to be lower. A 5‑year fix locks in a rate that is often higher, reflecting the lender’s expectation of higher average rates over that period. The trade‑off: if rates drop in 2026, a 5‑year fix would mean missing out on lower payments.

• 2‑year fixed: moderate premium over variable, flexibility after 2 years, lower break‑cost risk if you need to exit.
• 5‑year fixed: higher rate, maximum payment certainty, but large break costs if you sell or refinance early.

Current fixed rates offered by Bankwest

Bankwest does not publicly display its fixed rates on the same page as variable rates; however, Finder (rate tracker) reports that fixed rates are typically 0.2–0.5% higher than the comparable variable rate, depending on term. For an owner‑occupier, a 2‑year fixed might be around 6.1–6.4% p.a., while a 5‑year fix could be 6.5%+.

Break costs and flexibility considerations

Bankwest charges a break‑cost fee if you exit a fixed loan early. The fee can be thousands of dollars, especially during a falling‑rate environment because the lender loses the interest income you would have paid. Compare the Market (break costs overview) advises borrowers to check the break‑cost formula before committing to a long fixed term.

The implication: a 2‑year fix balances protection against near‑term volatility with the flexibility to move to a variable when rates may be lower. A 5‑year fix is suited only to borrowers who are certain they will stay in the loan for the full term and prefer peace of mind over potential savings.