businessOwned by: ASX Listed
monetization_onFunded by: Retail deposits and wholesale capital markets
securityLMI Provider: Genworth
account_balanceLender type: Bank
Unlike most banks, Bank of Queensland has nearly two thirds of its branches “owner managed”. The franchise like structure, great interest rates and success with mortgage brokers has enabled BOQ to become one of the more popular banks in QLD.
How do BOQ’s home loans compare?
They’re great at
- Interest rate specials if you apply at the right time
- Special discounts for doctors, accountants, engineers and lawyers
- People who want to have a close relationship with their local branch
- Many of their branches are franchisees and give better service
- A competitive range of commercial property loans and business loans
- They provide a flexible approach for those working in a family business.
- Can consider up to 6 units on one title.
- Can consider constructing up to 3 dwellings on one title.
- Can consider high-density apartments at high LVRs.
But they’ve got some drawbacks…
- Their credit team are pedantic and ask unnecessary questions
- They outdated systems which cause delays
- They’re usually slow to assess loan applications
- They don’t usually make exceptions to their lending policy
Coronavirus / COVID-19: BOQ mortgage relief
BOQ home loan customers facing financial pressure due to the coronavirus pandemic can opt to defer their home loan repayments or switch to interest-only for three months initially, with an option to further extend it subject to a review.
Remember, even though no repayments need to be made during this period, interest continues to accrue on your home loan. At the end of the repayment pause period, your home loan balance will have increased.
The Bank of QLD is also offering a ‘fast track hardship assistance’ to help customers who are in arrears, need early access to their term deposits and waived fees and charges related to non-payments.
To apply for a mortgage relief with BOQ, you can call 1800 079 866 or apply online.
Coronavirus / COVID-19 Temporary Policy Changes: BOQ
Effective immediately, BOQ has announced that they will no longer support home lending applications that fall into the following categories:
- Applications with a DTI (debt-to-income) ratio greater than 8x; or
- Non-PAYG applications with a DTI ratio greater than 6x; or PAYG applications with a DTI ratio greater than 6x, where the Loan to Value Ratio (LVR) is greater than 80 per cent.
This is a temporary adjustment to the bank’s risk appetite; there will be no change to BOQ’s existing credit policy.
What home loans types do they have?
BOQ has a range of full feature home loans such as their Clear Path Variable and Professional Package as well as some no frills home loans like their Economy Home Loan and Fixed Rate Home Loan.
They have a few speciality products such as waived LMI for professionals that is offered through Bank of QLD specialist and a bridging loan for people who are selling and buying a new home.
Tips for getting a great rate with BOQ
It’s all about timing!
BOQ is trying to grow its market share so it’s offering special discounts to lure customers to refinance to BOQ. If you’re buying a home or refinancing at the right time, then you may get a great deal on a variable rate or fixed rate that is below what the major banks can offer.
A good mortgage broker can also put in a pricing request to see what BOQ is willing to offer to win your business.
Use BOQ Specialist’s home loan application form to prepare for your home loan application.
Note: This is the latest mortgage application form effective March 2017. Please refer to Bank of Queensland for their most up-to-date document requirements.
Compare BOQ to other lenders
Not sure which lender is right for you? Not sure which Bank of QLD home loan you should choose? Our Home Loan Experts can help!
Talk to one of our mortgage brokers by calling us on 1300 889 743 or complete our free assessment form.