BOQ and MOVE Bank cut fixed home loan rates by up to 60 basis points

Alex Brewster By on August 26, 2019
 
BOQ and MOVE Bank cut fixed home loan rates by up to 60 basis points

Photo by Morgan Harris on Unsplash

Bank of Queensland (BOQ) has slashed interest rates on its owner-occupier and investment fixed interest rates by up to 60 basis points.

The changes, effective today, are the fourth round of rate cuts by the lender since the RBA first cut the cash rate in June.

BOQ owner-occupied fixed principal and interest rate changes

  • Five-year fixed loans reduced by 60 basis points to 3.89% p.a. (4.03% p.a. comparison rate*)
  • Four-year fixed loans reduced by 50 basis points to 3.89% p.a. (4.03% p.a. comparison rate*)
  • Two-year fixed loans reduced by 35 basis points to 3.74% p.a. (4.00% p.a. comparison rate*)

BOQ owner-occupied fixed interest-only rate changes

  • Five-year fixed interest-only loans reduced by 50 basis points to 4.09% p.a. (4.11% p.a comparison rate*)
  • Four-year fixed interest-only loans reduced by 40 basis points to 4.09% p.a. (4.09% p.a. comparison rate*)
  • Three-year fixed interest-only loans reduced by 20 basis points to 4.19% p.a. (4.10% p.a. comparison rate*)
  • Two-year fixed interest-only loans reduced by 45 basis points to 3.84% p.a. (4.01% p.a. comparison rate*)

BOQ investment fixed principal and interest rate changes

  • Five-year investment fixed principal and interest loans reduced by 50 basis points to 4.09% p.a. (4.26% p.a. comparison rate*)
  • Four-year investment fixed principal and interest loans reduced by 40 basis points to 4.09% p.a. (4.27% p.a. comparison rate*)
  • Three-year investment fixed principal and interest loans reduced by 20 basis points to 4.19% p.a. (4.29% p.a. comparison rate*)
  • Two-year investment fixed principal and interest loans reduced by 45 basis points to 3.84% p.a. (4.23% p.a. comparison rate*)

BOQ investment fixed interest-only rate changes

  • Five-year investment fixed interest-only loans reduced by 50 basis points to 4.19% p.a. (4.30% p.a. comparison rate*)
  • Four-year investment fixed interest-only loans reduced by 40 basis points to 4.19% p.a. (4.30% p.a. comparison rate*)
  • Three-year investment fixed interest-only loans reduced by 20 basis points to 4.29% p.a. (4.32% p.a. comparison rate*)
  • Two-year investment fixed interest-only loans reduced by 55 basis points to 3.84% p.a. (4.32% p.a. comparison rate*)

The bank has also cut on a number of discounted rate and speciality products, including the Home Loan Privileges package product which has also had rates reduced by up to 60 basis points.

BOQ has been contacted for comment on these changes.

Looking for a low variable rate home loan? The table below displays owner-occupier products which may represent the best of the big four banks, best of the top 10 customer-owned banks and the best of the larger non-banks. 

Provider Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
 
Purchase or Refi, P&I 80% Smart Home Loan 2.88% 2.90% $1,660 More details
Discount Variable 80% 3.07% 3.09% $1,702 More details
Base Variable Rate Special P&I 3.20% 3.20% $1,730 More details
Ad rate
p.a.
Comp rate*
p.a.
Monthly
repayments
Purchase or Refi, P&I 80% Smart Home Loan
2.88% 2.90% $1,660
More details
Discount Variable 80%
3.07% 3.09% $1,702
More details
Base Variable Rate Special P&I
3.20% 3.20% $1,730
More details

Base criteria of: a $400,000 loan amount, variable, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. Introductory rate products were not considered for selection. Monthly repayments were calculated based on the selected products’ advertised rates, applied to a $400,000 loan with a 30-year loan term. Rates correct as at 18 November 2019. View disclaimer.

MOVE Bank slashes rates on more than half of its home loans

MOVE Bank has made similar changes to BOQ, last Thursday announcing cuts of up to 60 basis points on nine of its home loan products.

MOVE Bank fixed home loan rate changes

  • ‘Ultra-Low Lockit’ three year Fixed Home Loan reduced by 37 basis points to 2.98% p.a. (4.06% p.a. comparison rate*)
  • ‘Straightforward Home Loan’ reduced by 15 basis points to 3.09% p.a. (3.12% p.a. comparison rate*)
  • ‘First Home Loan’ – one-year Intro Rate reduced by 20 basis points to 3.19% p.a. (3.68% p.a. comparison rate*)
  • One-year Flexi fixed-rate home loan reduced by 60 basis points 3.19% p.a. (4.32% p.a. comparison rate*)
  • Two-year Flexi fixed-rate home loan reduced by 60 basis points to 3.29% p.a. (4.23% p.a. comparison rate*)
  • Three-year Flexi fixed-rate home loan reduced by 60 basis points to 3.39% p.a. (4.17% p.a. comparison rate*)
  • One-year ‘Investment Lockit’ rate home loan reduced by 100 basis points to 3.19% p.a. (4.90% p.a. comparison rate*)
  • Three-year ‘Investment Lockit rate’ home loan reduced by 45 basis points to 3.39% p.a. (4.64% p.a. comparison rate*)
  • Five-year ‘Lockit’ fixed-rate home loan reduced by 60 basis points 3.79% p.a. (4.18% p.a. comparison rate*)

MOVE Bank CEO Therese Turner said the cuts were the result of the bank’s commitment to ensuring their rates offered maximum value.

“After two consecutive months of RBA cash rate reductions, we have seen significant levels of interest rate movement within the home loan market,” Ms Turner said.

“Once the market settled, we reviewed our rates again and saw there was an opportunity to re-establish our position as a market leader with our award-winning home loans.”

The new rates are available now for new loans and come into effect as of 1 September 2019 for existing variable product holders.

HomeStart Finance announces fixed rate cuts

HomeStart Finance has also decreased fixed rates by up to 50 basis points, effective today.

HomeStart was founded as part of an initiative of the South Australian state government, with the primary purpose of assisting first home buyers (FHBs) by offering low-deposit home loan products.

HomeStart fixed home and graduate loan rate changes

  • One year rate reduced by 20 basis points to 4.49% p.a. (4.97% p.a. comparison rate*)
  • Two-year rate reduced by 50 basis points to 3.99% p.a. (4.85% p.a. comparison rate*)
  • Three-year rate reduced by 50 basis points to 3.99% p.a. (4.78% p.a. comparison rate*)

HomeStart low deposit fixed-rate loan changes

  • One year rate reduced by 20 basis points to 5.49% p.a. (5.06% p.a. comparison rate*)
  • Two-year fixed rate reduced by 50 basis points to 4.99% p.a. for the first year and 3.99% p.a. for the second year (4.94% p.a. comparison rate*)
  • Three-year fixed rate reduced by 50 basis points to 4.99% p.a. for the first year and 3.99% p.a. for the second and third year (4.86% p.a. comparison rate*)

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in 2018. They are (in descending order): Credit Union Australia, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2019) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.

Some providers’ products may not be available in all states.

In the interests of full disclosure, Savings.com.au and loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*Comparison rate includes both the interest rate and the fees and charges relating to a loan, combined into a single percentage figure. The interest rate per annum is based on a loan credit of $150,000 and a loan term of 25 years.


Latest Articles

Alex Brewster
Alex joined Savings.com.au in 2019. He is passionate about providing Australians with the information and tools needed to make them financially stable for their futures.
Latest News
Essential Guides
Subscription Form