BOQ Home Loan Scoops Money Magazine Award
BOQ’s Clear Path home loan has just been judged the Cheapest Flexible Home Loan by a bank in Money magazine’s 2015 Best of the Best awards.
Clear Path launched in October 2013 to meet the market’s desire for a straight forward and transparent mortgage product that offers a competitive rate to all customers, regardless of how much they want to borrow.
Its simplicity and affordability has already proved popular with borrowers with Clear Path making up approximately 60% of all new home loans through BOQ.
The Money magazine award follows on from Clear Path being named Asia-Pacific Banking & Finance’s Innovative Retail Mortgage Product of the Year in May 2014.
How did Money magazine judge the cheapest flexible home loan on the market?
To even be considered as a flexible loan to be eligible for the award, home loans had to offer:
- free redraw – the ability to access additional repayments made on your home loan above the required minimum repayments
- free offset accounts – transaction account linked to your home loan, the balance of the transaction accounts is offset daily against your home loan reducing the amount of interest payable on the loan
- portability – the ability to transfer your current home loan to a new property without having to refinance
- split facility – the ability to have part of your home loan on a fixed interest rate and part on a variable interest rate.
In determining the winner for this award, Money magazine used a generic home loan example of a $350,000 mortgage for 25 years with 80% loan to value ratio – that is the borrowers had a deposit equivalent to 20% of the home’s value so they only needed to borrow 80% of its value.
Money magazine ranked home loans by total cost of the loan – interest costs and fees – using 50% advertised rate and 50% average 6-month historical rate.
This process found BOQ’s Clear Path home loan to be the cheapest flexible home loan by a bank.
So if you want the most affordable flexible home loan by a bank, why not contact your nearest BOQ branch and ask about our Clear Path home loan.