BOQ slashes variable interest rates to offer its 'lowest rate ever'

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on September 01, 2021
BOQ slashes variable interest rates to offer its 'lowest rate ever'

Bank of Queensland has cut its variable interest rates to offer the 'lowest advertised rate available' compared to any major bank.

Bank of Queensland (BOQ) has released a basic home loan product with a variable interest rate of 1.98% p.a. - the lowest variable rate ever offered by the bank.

This 1.98% variable rate (2.15% comparison rate*) is available for Owner Occupied principal and interest (P&I) loans with up to 70% loan-to-value ratio (LVR).

BOQ also claims this rate is lower than any other variable rate advertised by a major bank.

The offer is available for new customers only for both new and refinanced loans.

Customers that apply on or before 31 October 2021 and settle by 28 January 2022 could also receive $3,000 cashback if refinancing.

BCU rewards lower LVRs in three-tiered approach

BCU has released a three-tiered pricing structure for its 'OMG' Owner Occupier Principal & Interest variable home loan product.

The 'waterfall' rates automatically apply as customers pay down their home loan.

Interest rates will be reduced by 15 basis points to 2.29% p.a. (2.29% comparison rate*) for loans with an LVR equal to or below 60%.

For loans with an LVR greater than 60% but less than or equal to 80%, interest rates will be cut by 5 basis points to 2.39% (2.39% comparison rate*). 

Loans with an LVR greater than 80% will be offered a 2.44% interest rate (2.44% comparison rate*).

Adam Cross, Senior Retail Distribution Manager, said the new tiered structure is available to both new and existing customers.

"When the tiered pricing went live, over 700 existing BCU customers automatically benefited from a rate reduction of between 0.05% and 0.15% p.a.," Mr Cross said. 

"The past few years have been financially challenging with the ongoing COVID-19 situation and various natural disasters across our regions, and we're glad to be able to offer this rate reduction at a time when the community needs it.

"We’ve also reduced the minimum loan amount for an OMG home loan to $100,000, further increasing the number of customers who can access this competitive offering."

BCU's tiered pricing structure is similar to what Athena introduced in August last year.


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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender

Variable
More details
UNLIMITED REDRAWSSPECIAL OFFER
  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
UNLIMITED REDRAWSSPECIAL OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
Variable
More details
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.
  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
NSW/VIC/SA METRO & INNER REGIONAL AREAS$5000 CASHBACK. T&Cs APPLY.

Variable Home Loan (Principal and Interest)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of May 29, 2022. View disclaimer.


Image by City of Gold Coast on Unsplash

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. To read about how Savings Media Group manages potential conflicts of interest, along with how we get paid, please visit the web site links at the bottom of this page.

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Rachel is a Finance Journalist, and joined Savings in 2021. Coming from a background in the FinTech space, her interests include the innovation of lending technology, property, investing, and more. With a passion for educating and informing people about their finances, she hopes to increase the financial literacy of everyday Australians.

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