Non-major discounts rates due to broker feedback

by Julia Corderoy22 Apr 2015
A strengthening relationship with the broker channel has resulted in Bank of Queensland announcing a range of limited time discount rates for new-to-bank home loans with an LVR under 80%.

The discounts include a 17bps reduction in the Clear Path Home Loan, providing a limited time variable rate of 4.45%. 

It also includes a 30bps reduction on its three-year fixed rate, down to 3.99% with a 1.14% discount on the Standard Variable Rate when the loan rolls over at expiry. The non-major says the included expiry discount provides a sharp comparison rate and gives customers reassurance of a competitive ongoing rate.

BOQ will also offer the 3.99% rate on its three-year fixed package home loans, however at expiry these loans will roll over to the standard applicable package discount rate. 

BOQ head of third party distribution Brad Rockwell says broker feedback was a driving force behind the latest offers. 

“BOQ began re-entering the broker industry two years ago, and as we’ve continued to re-establish our presence we’ve been very keen for feedback on ways to partner successfully with brokers,” he said. 

“Some of the feedback we received was around our higher comparison rates because of the standard roll over rates at the expiry of loans. This was valuable input and we’ve responded with an offer that includes a competitive comparison rate. 

“We want to give customers and their broker the confidence of knowing the price is sharp and staying sharp.”

In its half year results released last month, BOQ announced brokers contributed $420 million of loan growth and accounted for 14% of settlements across the half year. The non-major now has over 2,000 accredited brokers and seven major partnerships, including recent addition to the Loan Market panel. 

To be eligible for the rate discounts, applications must be received by the end of May 2015 and settled by the end of June 2015. The rate discounts can also be applied to split loans.