BOQ interest rate update 

BOQ regularly reviews rates on our savings and home loans following each Reserve Bank of Australia’s (RBA) decision to ensure they balance the needs of savers and borrowers and are competitive in the market.

Keep checking this page, as we will keep it up to date with the latest information. 

For more information, view our media release here.

What this means for you

As interest rates rise, you may be wondering what this means for your home loan. We understand the importance of staying informed and being prepared. 

Fixed Loans

If you have a fixed rate loan, your repayments will stay the same for the duration of the fixed rate period. You don't need to take any action, as your repayments won't be affected by any rate rises during this time.

When your fixed rate period ends, your loan will revert to a variable rate. If rates have risen during your fixed rate period, your repayments will increase to reflect this. We'll write to you in advance to let you know what your new repayment amount will be and when it takes effect.

 

Variable loans

If you have a variable rate loan, your repayments will change if interest rates change. If rates rise, your repayments will increase to reflect this. We'll write to you to advise you of your new repayment amount and when it takes effect.

You’ll find tools below that help you calculate how an interest rate rise would affect your loan repayments. This can help you plan ahead and budget accordingly.

Financial difficulty

We know life doesn’t always go to plan, but we’re here to support you in difficult times

If you’re concerned about your financial position and feel you won’t be able to meet your financial obligations, we may be able to assist you. Get in touch with our Customer Assistance Team as soon as you can on 1800 079 866.

For more information, please visit our Financial Difficulty Assistance page.

Paying off your home loan

Find the best loan to suit your current situation.

Review the numbers

Our calculators can help homeowners budget for rising repayments.

In the event of interest rates rising, it’s good to be prepared so you can budget for your home loan.

Our calculators can help you work out what your new repayments will be, how much you can borrow, and the best home loan for you out of fixed, variable, or split repayments.   

Loan repayment calculator

See how much you can expect to repay on your loan

Borrowing power calculator

Discover your borrowing capacity

Split loan calculator

Calculate your repayments based on fixed or variable terms

Maximise your savings

Whether you’re saving for something special, or just a rainy day, here are our best savings accounts and term deposits to help you reach your goal.

Learn more

FAQs

  • Who is the RBA and why are interest rates rising?

    The RBA is Australia's central bank and is responsible for making monetary policy decisions, including setting the cash rate. They can either raise, hold or cut the official cash rate target to manage the Australian economy.

    The RBA describes the cash rate as the interest rate that banks pay to borrow funds from other banks in the money market overnight. It influences all other interest rates, including mortgage rates and banks can pass these costs down to their borrowers.

    Changes to the cash rate are announced on the first Tuesday of every month (except in January).

  • Will interest rates continue to rise?

    There’s no guarantee whether interest rates will increase or decrease.

    Although there is uncertainty around whether rates will continue to rise, the RBA sets the cash rate each month, so any changes in the rate will occur on the first Tuesday of every month (apart from January). 

  • Why does BOQ sometimes pass on a cash rate rise?

    While the RBA’s monetary policy has been to keep the cash rate low, the central bank is now raising rates to combat rising inflation. 

    When the RBA lifts rates, the amount it costs BOQ to acquire the funds we lend to our customers also increases. This increased cost needs to be factored into the interest rates we charge and, sometimes, this will result in an increase to our interest rates for home and business lending customers. 

    BOQ regularly reviews interest rates to ensure they balance the needs of savers and borrowers and are competitive in the market. 

  • What were the recent changes to BOQ’s variable rates?
    Month Rate increase Effective date
    June 2023 0.25% p.a 16 June 2023
    May 2023 0.25% p.a 13 May 2023
    March 2023 0.25% p.a 11 March 2023
    February 2023 0.25% p.a 11 February 2023
    December 2022 0.25% p.a 10 December 2022
    November 2022 0.25% p.a 12 November 2022
    October 2022 0.25% p.a 15 October 2022
  • How much extra will I need to pay on my home loan? And when? How do I find this out?

    For existing home lending customers on a variable rate, BOQ will send you a letter informing you of the new repayment amount and when this will take effect. 

    You can use BOQ’s Loan Repayment Calculator to calculate how your repayments may change.

  • Is there any change to my fixed rate loan?

    For our existing home loan customers currently on a fixed rate, your loan repayment amount will not change for the duration of the period you have chosen to fix the rate of your loan.

  • When you approved my loan, how did you know I could afford it?

    BOQ applies a number of 'tests' when assessing customers' ability to repay a loan.  

    These ‘tests’ include consideration of potential movements in interest rates over the life of the loan and evaluate a customer’s living expenses against their income.

    Along with requirements by Australia’s banking regulators, these 'tests' are put in place to assess if a customer can still meet repayments in a higher interest rate environment before approving a loan. 

  • What if I can’t afford any increases to my loan?

    We’re here to help. If you are having trouble making loan repayments, the best thing you can do is get in touch with our Customer Assistance Team as soon as you can once you know what your new repayments are.

    You can find further details on our Financial Difficulty Assistance page.

    The Australian Banking Association’s Financial Assistance Hub is also an excellent resource to help you understand the options that may be available if you are in financial difficulty.