BOQ Ready to cut Clear Path With or Without RBA

Monday, 03/02/2014

Easing funding pressures have allowed BOQ to announce a 7 basis point cut to its Clear Path variable product ahead of the Reserve Bank’s Board meeting on Tuesday. 

Group Executive for Retail Banking Matt Baxby said regardless of the RBA’s decision, BOQ would be passing on an extra seven basis point reduction to its Clear Path variable and line of credit products reducing the headline interest rate to 4.87% and 5.07% respectively, effective Monday 10 February. 

“The additional discount on our Clear Path product provides a very sharp rate that at other banks is only available to high-end borrowers engaged in tough under-the-table negotiations,” Mr Baxby said. 

“But we believe in having a great rate available to everyone; whether you’re from Gladstone or Geraldton, a first-home buyer or seasoned investor, if you’re borrowing $200,000 or $2 million – the same great rate applies. 

“This will be our lowest variable rate on offer in more than 20 years, in fact the last time rates were near this level the internet didn’t exist.  

“We’ve recently seen many of the building societies and credit unions competing hard particularly on price, but unfortunately this often only benefits online-only customers or customers in very distinct locations with a nearby branch. 

“As a bank with more than 260 branches across the country, we’re one of the few banks outside the Big 4 that has the presence to help customers across the country with better rates and services. 

“We’ve found that particularly around those big life decisions such as purchasing a home, people want that personalised service from a local individual, which is BOQ’s specialty. 

“Unlike the Big 4, we build valuable, positive relationships with customers to prove that it’s possible to love a bank.  

“The recent improvements in funding conditions are definitely a win for consumers, and I encourage homebuyers to shop around because we’re keen to give the average customer a better rate and better service,” he said.