Bank of Queensland puts its customers on the fast track to savings

Good new for Bank of Queensland customers as the bank has introduced a new facility, Fast-Track 100% Mortgage Offset, to its range of home loans effective from 22nd November.

The facility is available for both Owner Occupiers and Investment Housing borrowers with the following loans which now have an impressive array features and benefits:

  • Standard Rate Variable Housing Loan
  • Discount variable Rate Housing Loan
  • “Queenslander” Housing Loan
  • 1 Year Fixed Rate Loan

Whilst mortgage offset was previously available, the benefits of Fast-Track 100% Mortgage Offset help differentiate it markedly from that of competitors. Usually a mortgage offset facility means depositing directly to the home loan account and withdrawals are allowed provided they are above a pre-set minimum. Some institutions also charge a fee.

The beauty of this facility is that credit funds in the customers Choice or Ultimate Savings account will earn the same interest rate as that charged on the customer’s home loan. Interest is then off-set against the home loan, which reduces the unpaid balance of the home loan and therefore reduces not only the amount of interest payable but also the term of the loan. Borrowers are also effectively reducing their tax bill as no credit interest is earned.

A further benefit is that funds held in a Choice or Ultimate Savings account are also available at call meaning the accounts are effectively acting as free redraw facilities.

Minimum withdrawal requirements naturally do not apply and everyday access to Choice or Ultimate Savings account remains unchanged, however a Mortgage Benefit Fee of $2.00 per month will apply for the use of the facility. The fee will be debited from the loan account at the same time the interest is charged.

Also effective from 22nd November is an $8.00 per month fee that will be debited the same day as interest charges. The fee is applicable to new borrowers only and does not apply to existing borrowers.