Bank of Queensland Mortgage Rates

To stay updated on Bank of Queensland mortgage rates, check back here every week or bookmark this page. Revised on [date], the tables below are subject to amendments. 

Bank of Queensland mortgage products: 

1. Fixed rate home loan 
2. Economy Variable Home loan 
3. Clear Path, Variable Home Loan 

Bank of Queensland Mortgage Rates FAQs 

How much is the BOQ package fee?  

The Bank of Queensland offers various fees within its banking package for home loans. 

Home loan fees within the banking package 

• annual banking package fee: $395, charged initially from settlement proceeds and then on the anniversary date of your Transaction Account establishment each year 
• valuation fee: the bank covers up to $1,100 (including GST) for external property valuation costs over the life of the package 
• legal fees: 
  ○ general home loans: no charge 
  ○ for companies and trusts: up to $550 (including GST) of external costs per settlement. Additional costs are the borrower's responsibility 
• deed of priority: external costs apply 
• settlement processing fee (per security): $175, charged for each property taken as security 
• bank cheque fees: external costs apply 
• government, search fees and duties: external costs apply 

Additional fees 

• complex variation fee: $395 for material variations such as adding or removing a borrower 
• application reassessment fee: $250 for reassessment required due to borrower delay 
• special attendance fee: $350, each time a security is substituted 
• discharge fee (per property): $350, payable each time a security is discharged 
• settlement cancellation fee: $150, if settlement is cancelled 
• consent to subdivision: $350, for providing consent to a plan of subdivision 
• redraw fee (per redraw): $50, when requesting a redraw from your loan account 
• fixed rate break costs: economic costs apply if you repay your fixed rate contract early 
• admin fee for break: $50, for processing costs if the fixed rate contract is repaid early 
• payment dishonour fee: $45, if a repayment debited to your account is dishonoured 
• duplicate and interim statement fee: $5, for each duplicate or interim statement requested 
• arrears management and administration fee: $140 per hour per staff member required to attend, payable each month in which you are in default 
• information fee: $80 per hour per staff member required to attend, payable each time you request facility information 

These fees are part of the comprehensive structure within the Banking Package, offering transparency for those researching Bank of Queensland mortgage rates. 

Does BOQ have an offset account?  

Yes, the Mortgage Offset Account is provided by the bank. This account helps reduce Bank of Queensland mortgage rates by offsetting the loan balance with the funds in your offset account. Here are the key features: 

• 100% offset: reduces interest on your home loan 
• no account maintenance fee: no ongoing fees for maintaining the offset account 
• free transactions: includes free ATM withdrawals, cheques, BPAY, and funds transfers 
• daily interest calculation: interest is calculated daily on the outstanding balance of your home loan minus the offset account balance 
• unlimited transactions: no limit on cheques, withdrawals, and balance enquiries 

The Mortgage Offset Account operates like a standard transaction account, providing easy access to funds while helping manage Bank of Queensland mortgage rates. This account has no minimum balance requirement, making it flexible for borrowers. 

What is the rating of the Bank of Queensland?  

The Bank of Queensland (BOQ) has been assessed by multiple rating agencies, reflecting its financial stability and operational health. Below are the ratings: 

BOQ’s credit ratings assessment 

Fitch Ratings 

• long term: A- 
• short term: F2 
• outlook: stable 

Fitch Ratings affirmed BOQ’s rating due to several key factors: 

• solid capitalisation: BOQ has strong capital buffers, which enhance its ability to withstand economic pressures and absorb potential losses 
• better asset quality: the bank maintains a high-quality loan portfolio with low levels of non-performing loans, indicating effective risk management 
• stable profitability: consistent earnings and prudent cost management contribute to BOQ's financial stability 

Additionally, Fitch highlighted BOQ's stable funding profile and sound liquidity management. These factors support the bank’s financial health and its ability to meet financial obligations, which positively impacts the perception of Bank of Queensland mortgage rates. 

Other rating agencies assessments 

Standard & Poor's (S&P) 

• long term: A- 
• short term: A-2 
• outlook: stable 

Moody's 

• long term: Baa1 
• short term: P-2 
• outlook: stable 

These ratings reflect BOQ's overall stability and sound financial management. In analysing Bank of Queensland mortgage rates and the bank's financial health, one must understand these ratings. 

How stable is the Bank of Queensland? 

Bank of Queensland (BOQ) has a stable but cautiously monitored position in the financial market. This can be seen from its credit rating and outlook from S&P Global Ratings. 

Credit rating effect on Bank of Queensland mortgage rates 

Higher credit rating generally results in lower mortgage rates for institutions like the BOQ, as it indicates lower default rates, leading to better borrowing terms. This affects mortgage rates by assessing the entity's creditworthiness. Higher ratings suggest lower risk, reducing borrowing costs and improving Bank of Queensland mortgage rates. 

S&P Global Ratings 

S&P is a leading credit rating agency that evaluates the creditworthiness of institutions and their ability to meet financial commitments. 

BOQ’s stability key highlights 

• S&P rating: BOQ holds a long-term issuer credit rating of A- and a short-term rating of A-2 from S&P Global Ratings. This rating suggests a moderate level of stability and reliability 
• outlook revision: S&P revised the outlook on BOQ from stable to negative, indicating potential future risks due to performance concerns 
• performance concerns: BOQ's operating performance and lending growth have been below that of similarly rated regional Australian banks. This has prompted S&P to monitor the situation closely 
• competitive pressures: the Australian mortgage market's competitive nature is challenging BOQ’s ability to compete effectively, impacting its traditional retail banking business 
• profitability issues: BOQ's profitability has remained low relative to similarly rated peers, and margins are under pressure from both lending and deposit competition 

These evaluations are based on comprehensive data analysis rather than subjective opinions of the rating agency. Such information is important in business research, providing insights into BOQ’s long-term performance in the mortgage market, including implications for Bank of Queensland mortgage rates. 

In summary, BOQ's stability is backed by its A-/A-2 credit rating from S&P. The revised negative outlook reflects concerns about performance, profitability, and execution of strategic initiatives.