BOQ releases ‘lowest ever’ variable home loan rate
The Bank of Queensland (BOQ) has joined a small but growing group of mortgage lenders offering a variable home loan featuring a headline rate starting with a ‘1’.
On Tuesday, BOQ cut several interest rates on its Economy Variable Home Loan by a considerable 51 basis points, meaning new mortgage customers to the bank can now access rates as low as:
- 1.98% p.a. (2.15% p.a. comparison rate*) - available to owner occupiers (<70% LVR) who have a debt-to-income ratio below 6.
- 2.03% p.a. (2.20% p.a. comparison rate*) - available to owner occupiers (70-80% LVR) who have a debt-to-income ratio below 6.
According to BOQ, the new rate of 1.98% p.a. (2.15% p.a. comparison rate*) is the ‘lowest ever variable rate’ it has ever released. Perhaps unsurprisingly then, it’s also currently sitting among the very lowest variable rates being tracked in the Mozo database.
In addition to reducing some of its rates, the bank also announced the extension of its existing cashback offer of $3,000 to eligible refinancers willing to switch their existing loan over to BOQ (T&Cs apply).
There has been a recent surge of cashback offers coming onto the market, with BOQ among over 20 lenders in our database currently offering cashback deals between $1,500 and $5,000.
RELATED: September mortgage wrap: Westpac headlines rate cuts, cashback deals grow
Interested in taking a closer look at some of BOQ’s home loans? Check out our mini reviews of the Economy Variable Home Loan and Discount Fixed Rate loan below.
Economy Variable Home Loan
- Variable rates as low as 1.98% p.a. (2.15% p.a. comparison rate*)
- Extra repayments and redraw facility available
- $3,000 cashback deal for refinancers
As we mentioned above, BOQ has just cut rates on its Economy Variable Home Loan to the lowest levels they’ve ever been. That means owner occupiers with a debt-to-income ratio under 6 can access variable rates as low as 1.98% p.a. (2.15% p.a. comparison rate*) with an LVR <70% and as low as 2.03% p.a. (2.20% p.a. comparison rate*) with an LVR between 70-80%. Borrowers can make extra repayments towards their loan balance and they can even dip into any additional repayments down the track using the redraw facility (min. $100 redraw). There are some costs to be mindful of though, including one-off application ($300), settlement ($150) and discharge ($320) fees, as well an ongoing $10 monthly service fee. And last but not least, BOQ has a special $3,000 cashback offer for eligible refinancers who are willing to switch their existing loan of $250,000+ (<80% LVR) over to an eligible BOQ loan (including the Economy Variable Home Loan). Applications will need to be made before 31 October, 2021, and settled by 26 November, 2021 (T&Cs apply).
Discount Fixed Rate
- 3-year fixed rate of 2.19% p.a. (3.03% p.a. comparison rate*)
- Make up to $5k in extra repayments p.a.
- $3,000 refinance cashback offer
Like the idea of the repayment certainty that comes with locking in a rate? Well, BOQ’s Discount Fixed Rate offer could provide just that for borrowers looking to fix their rate for 1-5 years. The home loan allows owner occupiers (<80% LVR) to lock in competitive fixed rates as low as 1.99% p.a. (3.07% p.a. comparison rate*) on a 2-year term, or 2.19% p.a. (3.03% p.a. comparison rate*) on a 3-year term. Plus if you’re looking to pay off your loan ahead of schedule, you’ll be able to make extra repayments (without penalty) of up to $5,000 each year. The loan does feature a few fees though, such as an ongoing service fee ($10/month) and one-off application ($300), settlement ($150) and discharge ($350) fees. And yes, eligible refinancers can also score $3,000 by switching an existing loan of $250,000 or more (<80% LVR) over to BOQ’s Discount Fixed Rate loan. But this is a limited-time offer, so if you’re interested, you’ll need to apply before 31 October, 2021, and settle your loan by 26 November, 2021 (T&Cs apply).
Want to see how these offers stack up against other loans? Head on over to the Mozo home loan comparison hub where you'll be able to compare a range of loans from Australian banks and lenders.
* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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