- BOQ offers competitive home loan rates across variable and fixed products.
- Borrowers can choose between low-cost and feature-rich loan options.
- Monthly fees and product restrictions are worth weighing up before applying.
Bank of Queensland traces its origins to 1874 when Queensland's first permanent building society was founded. More than 150 years later, it is one of the 100 largest companies listed on the Australian Stock Exchange and a fixture among the country's top 10 home lenders.
In recent years, Bank of Queensland's organisational structure has been transitioning from its former hybrid franchisee/corporate banking model to a centralised business structure. This has seen head office buy out franchisees and close some branches as the bank converts to a digital-first banking strategy.
It also plans to boost its business and niche banking operations in specialist areas such health, professional services, and agriculture. Nonetheless, home lending remains an important part of its business with Bank of Queensland also owning the ME Bank and Virgin Money retail brands.
In August 2024, Bank of Queensland "paused" home lending through mortgage brokers amid the bank's ongoing structural changes. However, it continues to offer ME Bank home loans via broker channels as well as BoQ's business, finance, and specialist loans.
For borrowers happy to "go direct", Bank of Queensland offers competitive home loan rates, most with relatively low fees (although many of its home loans come with a monthly fee), and varied features, designed to present a compelling alternative to big bank home loans.
Compare BOQ home loan interest rates
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
6.03% p.a. | 6.18% p.a. | $3,007 | Principal & Interest | Variable | $10 | $450 | 70% | |||||||||||||
6.08% p.a. | 6.23% p.a. | $3,024 | Principal & Interest | Variable | $10 | $450 | 80% | |||||||||||||
6.13% p.a. | 6.28% p.a. | $3,040 | Principal & Interest | Variable | $10 | $450 | 70% | |||||||||||||
6.14% p.a. | 6.26% p.a. | $3,043 | Principal & Interest | Variable | $10 | $150 | 80% | |||||||||||||
6.19% p.a. | 6.34% p.a. | $3,059 | Principal & Interest | Variable | $10 | $450 | 80% | |||||||||||||
6.19% p.a. | 6.34% p.a. | $3,059 | Principal & Interest | Variable | $10 | $450 | 0% | |||||||||||||
6.29% p.a. | 6.41% p.a. | $3,092 | Principal & Interest | Variable | $10 | $150 | 80% | |||||||||||||
6.29% p.a. | 6.41% p.a. | $3,092 | Principal & Interest | Variable | $10 | $150 | 80% | |||||||||||||
6.39% p.a. | 6.45% p.a. | $2,663 | Interest-only | Variable | $10 | $150 | 80% | |||||||||||||
6.39% p.a. | 6.25% p.a. | $3,124 | Principal & Interest | Fixed | $0 | $0 | 80% |
What home loans does BOQ offer?
Bank of Queensland offers a range of home loans for owner-occupiers and investors. Let's check some of their main features and restrictions below:
Economy Variable Home Loan
BOQ's Economy Variable Home Loan is aimed at borrowers who want a straightforward mortgage without paying for extra bells and whistles. While it skips features such as an offset account, it still allows borrowers to make additional repayments and access redraw facilities.
BoQ's lowest variable interest rate home loan
$10 monthly fee
Ability to split loan
Monthly, fortnight, weekly repayment option
Interest only (IO) repayment option (maximum five years, subject to approval)
Unlimited free redraws
Up to 90% loan-to-value ratio (LVR)
Mobile and online banking
Free residential property valuation by BoQ-approved valuer
Not available for construction home loans
Clear Path Variable Home Loan
BOQ's more fully featured variable-rate mortgage, aimed at borrowers who want flexibility alongside a competitive rate.
Can be linked to a 100% mortgage offset account
$10 monthly fee
Ability to split loan
Monthly, fortnightly, weekly repayment option
Interest only repayment option (maximum five years, subject to approval)
Unlimited free redraws
Up to 95% LVR with principal and interest (P&I) repayments; or 90% with IO repayments
Mobile and online banking
Free residential property valuation by BoQ-approved valuer
Up to 90% LVR for construction home loans, inclusive of lenders mortgage insurance (LMI). Interest-only rate will apply during construction period
Not available for low doc borrowers
Fixed Rate Home Loan
BOQ's Fixed Rate Home Loan allows borrowers to lock in their interest rate and repayments for up to five years.
Two- to five-year terms available
$10 monthly fee
Ability to split between fixed and variable rate
Monthly, fortnightly, weekly repayment option
Make up to $10,000 in additional repayments without penalty
Mobile and online banking
Free residential property valuation by BoQ-approved valuer
Owner occupiers can borrow up to 95% of property value with P&I repayments or 90% with IO repayments
Investors can borrow up to 90% with P&I or IO repayments
Interest only available for same term as fixed period and subject to approval
No redraw/offset available
No construction option
Pros of Bank of Queensland home loans
Generally competitive interest rates
Regularly offers interest rate specials and cashback offers
Available to borrowers in all Australian states and territories
High LVR home loans available to approved borrowers
Offers high LVR home loans to first home buyers
Gives additional discounts to certain professions including doctors, accountants, engineers, and lawyers
Sizeable branch network for those who prefer in-person banking
Cons of Bank of Queensland home loans
Many home loans come with monthly fees
Outdated systems and technology in the process of being upgraded
Can be slower to assess loan applications
Doesn't currently offer home lending through mortgage brokers
In a state of structural and cultural change which may have service implications
Undergoing some branch closures for those who prefer in-person banking
Fairly rigid lending policies
Bank of Queensland built its 150-year-old reputation on a network of locally owned branches. Today, however, it operates much like other ASX-listed banks, having bought back its franchised shopfronts.
Borrowers turning to Bank of Queensland will likely notice its relatively competitive interest rates, a full suite of features comparable with those of major lenders, options catering to first-home buyers, investors and refinancers, and occasional incentives such as cashback offers.
However, it might pay to note BoQ charges monthly fees on most home loans - even its basic products - and has often been seen as lagging peers when it comes to technology.
What long-time customers think
Peter Cummins has taken out five Bank of Queensland home loans - both owner-occupier and investor - over the past 35 years.
"Our first home loan was one where you sat down with the bank manager who you knew by name and he filled in the forms with you," he said.
Mr Cummins returned to Bank of Queensland for all his subsequent home loans driven largely by his existing personal relationships with bank managers and branch staff who he found helpful and responsive to any issues.
"Of course, we looked around at other rates and deals but always went back to Bank of Queensland because you weren't just a faceless applicant and they were pretty flexible in matching what was out there," he said.
Mr Cummins said he was aware of changes to the bank's corporate structure and direction but would wait to see how that played out.
"I certainly wouldn't look to change lenders because of it as long as the interest rates remain competitive and the service standards don't drop," he said.
"All my banking is done online anyway these days. I'd still expect the bank to be responsive to dropping their interest rates if I feel they could be more competitive and look after a loyal customer if I reach out to them with an issue, just like the old franchisees would.
"I've never cared too much that their technology was not cutting edge, as long as the rates were good and someone was happy to speak to me if I needed."
Peter Cummins, Bank of Queensland home loan customer
How to apply for a BOQ home loan
To begin an application, you will need:
Proof of identity
Employment details
Financial details including income, assets, expenses, and liabilities
Am I eligible for a BOQ home loan?
To be eligible for a BOQ home loan, you must:
Be 18 years of age or over
Have never been bankrupt
Be an Australian citizen or permanent resident
Earn a regular income
Savings.com.au's two cents
Bank of Queensland might not have the name recognition of the big four banks, but for some borrowers that's part of the appeal. It occupies a middle ground between Australia's banking giants and newer digital lenders, combining a long history and branch network with rates that can often compete with larger rivals.
The catch is that BOQ is currently in the middle of a significant transition. As it moves away from its franchise model and towards a more centralised, digital-first approach, borrowers may encounter a bank that's still finding its footing in certain areas.
If you're after a home loan from an established lender and are happy to apply directly with the bank, BOQ could be worth considering. But borrowers who value cutting-edge technology, fast approvals or broker support may find a better fit elsewhere.