Bank of Queensland Economy Home Loan

Rates and Fees verified correct on December 4th, 2016

Take advantage of a basic no frills home loan with the BOQ Economy Home Loan

The BOQ Economy Home Loan is a home loan without too many bells and whistles that you often don't use but still has the benefits of extra repayments and fee free redraw. It also gives you flexibility in your repayment type and frequency so that you can suit your own banking needs.

For a full featured variable rate home loan package consider the BOQ Clear Path Variable Home Loan. You get the benefit of competitive variable interest rates with a 100% offset account.

Interest Rate Max Insured LVR Max LVR
Variable (Investor)
4.09% p.a.
Comparison Rate
4.24% p.a.
90% 80%
Variable (Owner Occupier)
3.89% p.a.
Comparison Rate
4.04% p.a.
95% 80%
Product NameBank Of Queensland Economy Home Loan
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Maximum Loan Amount$10,000,000
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountNo
Mortgage 100% OffsetNo
Loan Redraw FacilityYes
Split Loan FacilityNo
Fixed Interest OptionNo
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest and Interest Only Options
Application Fee$300
Lender's Legal Fee$350
Valuation Fee$0
Ongoing Fees$10 monthly ($120 p.a.)
Settlement Fee$150
Discharge Fee$150

Pros

  • Borrow up to 95% of the property value
  • Make additional repayments at any time without penalty
  • Withdraw excess funds from the mortgage using the redraw facility (minimum redraw amount $100)

Cons

  • There is a $300 application fee
  • There is a $10 per year account fee
  • A discharge fee of $150 applies when you close your home loan account

Things to consider about the BOQ Economy Home Loan

This loan is available for new lending for owner occupiers or investors whether they are individuals, companies or trusts. It is not suitable for Self-managed Super Funds or borrowers needing a construction loan. This loan cannot be used for refinancing or restructuring of your existing BOQ home loan.

Features of the BOQ Economy Home Loan

  • Loan-to-Value Ratio (LVR). You are allowed to borrow up to 95% of the value of the property for investment purposes or as an owner-occupier. You may be required to pay Lender’s Mortgage Insurance (LMI) if your loan is more than 80% of the property’s value.
  • Loan terms. This is a 30-year home loan, although the fixed terms you can choose from range from one to five years.
  • Repayment frequency. Choose from weekly, fortnightly or monthly repayments. Pick the option that coincides with your salary payment to ensure the repayment funds are always there.
  • Repayment types. Principal and interest repayments are allowed, where interest-only repayments are limited to five years and are subject to approval. You may also make additional repayments.
  • Redraw facility. You are able to redraw on any of the additional repayments you have made but must make a minimum redraw of at least $100.

Fees

  • Monthly fees: $10 a month. This fee is charged for the maintenance of your accounts
  • Application fee. $300 There is a $300 charge payable to the bank for the cost of the preparation of you loan documentation.
  • Settlement fee. $150. This is charged when you complete settlement.
  • Discharge fee: $150. This is charged when you close your home loan accounts and discharge your mortgage.
  • Legal fees: $350. This fee is charged to help with the setup of your home loan accounts and the fees incurred by Bank of Queensland.

How to apply for the BOQ Economy Home Loan

If you would like to apply for BOQ Economy Home Loan, click ‘Go to Site’ and you will be securely directed to a loan enquiry page with the Bank of Queensland. From here, you’ll be able to get in touch with a bank representative to discuss your loan options.

Before you can begin an application for a BOQ home loan, you will be asked if you meet certain eligibility requirements:

  • Driver’s license. You will need to be able to present photo identification along with another form of ID.
  • Income. You will need to be able to produce proof of income, either in the form of pay slips or tax returns. If self-employed you will be asked for profit and loss statements.

You will be asked to provide your contact information along with your employment type. In addition, Bank of Queensland will want a phone number and time that is best for a representative to reach you. Be sure to include the state that you are in to allow for any time differences.

When preparing for the appointment, have the following documentation ready:

  • Financial history. All account statements for the last three months including credit cards.
  • Property. A signed copy of the contract of sale and contact details for your solicitor and conveyancer.

If you think the BOQ Economy Home Loan might be right for you look at the rates and fees carefully when deciding on this type of loan and remember to compare it to other loans in the market to make sure it is the most suitable for your needs.


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Bank of Queensland Economy Home Loan Interest Rate History vs RBA Cash Rate Graph


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This page was last modified on 10 November 2016 at 9:30.

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Bank Of Queensland Economy Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $300 / $10

  • Max LVR

    80%

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