A premium home loan with an interest rate discount for larger loan amounts
The Bank of Queensland (BOQ) Discount Variable Rate home loan offers an interest rate discount for loans above $1,000,000 but with all the flexibility you need. Includes features such as a 100% offset account, extra repayments and a redraw facility.
To get the great rate discounts of this loan you must qualify for the Home Loan Privileges Package which offers a range of benefits on fixed rate loans, bank accounts, credit cards and much more.
| Product Name | Bank of Queensland Discount Variable Rate Home Loan |
|---|---|
| Interest Rate Type | Variable |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $1,000,000 |
| Minimum Loan Term | 2 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 80% |
| Mortgage 100% Offset | Yes |
| Loan Redraw Facility | Yes |
| Split Loan Facility | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & Interest |
| Application Fee | $0 |
|---|---|
| Lender's Legal Fee | $350 |
| Valuation Fee | $0 |
| Ongoing Fees | $395 p.a. |
| Settlement Fee | $150 |
| Discharge Fee | $150 |
Pros
- 100% offset account available
- Unlimited extra repayments
- Redraw facility
- Split your loan
- No application fee
- No monthly fee
Cons
- Annual fee of $395
What are the main considerations of this home loan?
This loan is only available for combined borrowings for loan amounts more than $1,000,000 and a Loan to Value Ratio (LVR) of less than or equal to 80%. A variable interest rate applies, which means it can fluctuate due to economic factors including the official RBA cash rate.
- You can get a 1.52% p.a discount off the standard variable rate for the first two years
- And get a 1.26% p.a. discount off the standard variable rate thereafter
The BOQ Discount Variable Rate is only available as a full documentation loan. Low-doc borrowers may want to consider another option.
The following borrowers and purposes are eligible:
- Companies, trusts and individuals (SMSFs are not available)
- Owner occupier and investment borrowers (borrowers which want to use the loan for business purposes is not available)
- Available as a construction loan option - the two-year introductory period will not commence until the loan has been fully drawn down
- New borrowings only (not available for refinancers)
Features of the BOQ Discount Variable Rate home loan
- Loan term. There is a minimum term of 2 years with this loan.
- Loan amounts. You can borrow a minimum of $1,000,000 and there is no maximum loan amount for this loan.
- Loan to Value Ratio. You can borrow up to 80% of the property's value with this loan.
- Mortgage offset account. A 100% offset account is available for personal customers only. This is not available for companies, SMSFs and trusts. This account acts as a linked transaction account, and any funds in it are used to offset the interest due on your home loan. An offset account with $50,000 in it on a home loan of $400,000 will see your interest calculated on $350,000 only.
- Additional repayments. You can make unlimited extra repayments with this loan, which can help you to pay your loan off sooner and save on interest.
- Redraw facility. You can withdraw extra repayments you've made using this redraw facility, meaning you can put any extra funds into your home loan without having to lock it away in the event a sudden expense crops up. It's free to make redraws, though a minimum redraw amount of $100 applies.
- Repayment flexibility. You have a choice of principal and interest repayments, or interest-only, giving you the flexibility to match this loan to your property ownership strategy. You can also repay on a weekly, fortnightly or monthly basis to suit your salary cycle.
- Split loan facility. You can choose to split portions of your loan with a fixed or variable interest rate. This gives you the advantages of fixed and variable rates.
- Online banking. Have on-demand access to your home loan account with BOQ electronic banking.
What are the fees and charges for this loan?
There is currently no application fee for this loan, below are some fees that are charged:
- Ongoing fee, $395 per year. This fee is charged on an annual basis for the maintenance of your home loan account.
- Settlement fee, $150. This fee is charged upon the creation of your home loan accounts.
- Discharge fee, $150. This is charged when you close your loan accounts with the lender.
How do I apply or find out more information about the BOQ Discount Variable Rate Home Loan?
If you would like to apply or find out more information about this loan visit the Bank of Queensland website where you can start your online application online or request a callback from BOQ at a time that suits you.
What are the loan requirements?
- You'll need to qualify for the Home Loan Privileges Package - this is available to both individual and joint borrowers, trusts and companies that have a housing loan. You will need to maintain an approved transaction account from BOQ though this is not required if you have an existing Line of Credit facility
- You'll need to have a total combined loan amount of $1,000,000 or more
- The maximum LVR available for this loan is 80%
Am I eligible?
- You're at least 18 years old
- You have never been bankrupt
- You're a permanent Australian resident
- You're earning a regular income
What documents do I need to provide?
- Proof of your identity
- Details about your employment
- Information about your financial details, income, assets, expenses and liabilities
- Information about any loan requirements you may need
