Interest Rate Hub

Frequently asked questions:

• What causes changes to my variable home loan rate?

  The Reserve Bank of Australia (RBA), the nation’s central bank, sets the cash rate to help manage the Australian economy. This rate determines the interest banks pay to borrow funds overnight and directly impacts mortgage rates. The RBA reviews the cash rate eight times a year, deciding whether to raise, hold, or cut the rate. Lenders may pass these changes on to their borrowers.

  BOQ Specialist  regularly reviews interest rates to ensure they balance the needs of savers and borrowers and are competitive in the market. 

• If my interest rate changes, how will I know what my new repayment will be?

  For existing home lending clients on a variable rate, BOQ Specialist will send you a letter to inform you of the new monthly repayment amount and when this will take effect.  

   You can use BOQ Specialist’s loan repayment calculator to calculate how your repayments may change. 

• Is there any change to my fixed rate loan?

   For existing home loan clients currently on a fixed rate, your loan repayment amount will not change for the duration of the period you have chosen to fix the rate of your loan.

• When you approved my loan how did you know I could afford it? 

  BOQ Specialist applies a number of ‘tests’ when assessing a client's ability to repay a loan.  

    These ‘tests’ include consideration of potential movements in interest rates over the life of the loan and evaluate a client’s living expenses against their income.

   Along with requirements by Australia’s banking regulators, these ‘tests’ are put in place to assess if a client can still meet repayments in a higher interest rate environment before approving a loan. 

• What if I can’t afford any increases to my loan? 

  We’re here to help. If you are having trouble making loan repayments, the best thing you can do is get in touch with your financial specialist directly as soon as you can once you know what your new repayments are.  

   Further details on the BOQ Specialist’s assistance for those experiencing financial difficulty, can be found here.

  The Australian Banking Association’s Financial Assistance Hub is also an excellent resource to help you understand the options that may be available if you are in financial difficulty. 

   

• What about my business loan rates?

  BOQ Specialist regularly reviews interest rates to ensure they balance the needs of savers and borrowers and are competitive in the market. 

  If the RBA increases rates, we may increase our business loan rates and will advise clients of any changes to their repayment amount.