BOQ responds to RBA decision

Thursday 7 July 2022

Following the Reserve Bank of Australia’s (RBA) decision to increase the cash rate by 0.50%, BOQ has today announced interest rate changes for variable home loan customers.
From 8 July, BOQ will lift variable home loan interest rates by 0.50% per annum (p.a.) for new and existing customers.

To support savings customers, BOQ will continue to offer competitive rates on key term deposits and savings accounts.

BOQ Group Executive, Retail Banking, Martine Jager said: "Despite tight economic circumstances, our home loan rates remain at historically low levels and continue to offer customers a competitive rate. 

“We remain conscious that any change to interest rates will affect each household budget differently. As with every rate decision, BOQ carefully considers our customers, our business and the RBA’s cash rate decision.

“To help support savers, we're continuing to offer some of the best savings rates in the market, with a range of high interest myBOQ accounts including MyBOQ Future Saver and myBOQ Smart Saver.

"BOQ has a range of online resources available including various home loan calculators. For customers experiencing financial difficulty, we are here to help and encourage customers to contact our dedicated support teams”, Ms Jager said.

For existing home loan customers on a variable rate, BOQ will inform customers of their new monthly repayment amount.

Customers are encouraged to visit any BOQ branch or call 1300 55 72 72 if they require further assistance or clarification regarding today's announcement.

Tips to get the most out of your home loan rate:

  1. Reduce interest with an offset account: An offset account is a stand-alone savings account that’s linked to a home loan, with the same lender. Make regular or one-off deposits to an offset account and withdraw from it as needed, so it operates like a normal transactional savings account. It even comes with a debit card to withdraw cash from an ATM.
  2. Get the flexibility of a redraw facility: redraw facility isn’t a separate account from a home loan. Instead, it’s a feature of a variable rate mortgage that enables making additional repayments into a home loan, above the minimum payment amount. This reduces the balance owing on a home loan, which means paying less interest and can paying the loan off faster.

Understanding the practical differences between these options can help customers make the best decision for their circumstances. To read the full article, click here.

Legal notes:

Interest rates from 6 July are subject to change. Terms, conditions, fees and charges apply. This is general information only and you should consider if these products are appropriate for you.

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