Bank of Queensland (BOQ) has released a basic home loan product with a variable interest rate of 1.98% p.a. - the lowest variable rate ever offered by the bank.

This 1.98% variable rate (2.15% comparison rate*) is available for Owner Occupied principal and interest (P&I) loans with up to 70% loan-to-value ratio (LVR).

BOQ also claims this rate is lower than any other variable rate advertised by a major bank.

The offer is available for new customers only for both new and refinanced loans.

Customers that apply on or before 31 October 2021 and settle by 28 January 2022 could also receive $3,000 cashback if refinancing.

BCU rewards lower LVRs in three-tiered approach

BCU has released a three-tiered pricing structure for its 'OMG' Owner Occupier Principal & Interest variable home loan product.

The 'waterfall' rates automatically apply as customers pay down their home loan.

Interest rates will be reduced by 15 basis points to 2.29% p.a. (2.29% comparison rate*) for loans with an LVR equal to or below 60%.

For loans with an LVR greater than 60% but less than or equal to 80%, interest rates will be cut by 5 basis points to 2.39% (2.39% comparison rate*). 

Loans with an LVR greater than 80% will be offered a 2.44% interest rate (2.44% comparison rate*).

Adam Cross, Senior Retail Distribution Manager, said the new tiered structure is available to both new and existing customers.

"When the tiered pricing went live, over 700 existing BCU customers automatically benefited from a rate reduction of between 0.05% and 0.15% p.a.," Mr Cross said. 

"The past few years have been financially challenging with the ongoing COVID-19 situation and various natural disasters across our regions, and we're glad to be able to offer this rate reduction at a time when the community needs it.

"We’ve also reduced the minimum loan amount for an OMG home loan to $100,000, further increasing the number of customers who can access this competitive offering."

BCU's tiered pricing structure is similar to what Athena introduced in August last year.

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Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Update resultsUpdate
Filters
LenderHome LoanInterest Rate Comparison Rate* Monthly Repayment Repayment type Rate Type Offset Redraw Ongoing Fees Upfront Fees Max LVR Lump Sum Repayment Additional Repayments Split Loan Option TagsFeaturesLinkComparePromoted ProductDisclosure
6.04% p.a.
6.08% p.a.
$3,011
Principal & Interest
Variable
$0
$530
90%
4.6 Star Customer Ratings
  • Available for purchase or refinance, min 10% deposit needed to qualify.
  • No application, ongoing monthly or annual fees.
  • Quick and easy online application process.
Disclosure
5.99% p.a.
5.90% p.a.
$2,995
Principal & Interest
Variable
$0
$0
80%
Apply in minutes
  • No application or ongoing fees. Annual rate discount
  • Unlimited redraws & additional repayments. LVR <80%
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
 Disclosure
6.09% p.a.
6.11% p.a.
$3,027
Principal & Interest
Variable
$0
$250
60%
  • No annual fees – None!
  • Get fast pre-approval
  • Unlimited additional repayments free of charge
 Disclosure
Important Information and Comparison Rate Warning

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. Some products will be marked as promoted, featured or sponsored and may appear prominently in the tables regardless of their attributes. All products will list the LVR with the product and rate which are clearly published on the product provider’s website. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate. Rates correct as of . View disclaimer.

Important Information and Comparison Rate Warning

Image by City of Gold Coast on Unsplash



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