The BOQ Economy Loan is available for both owner-occupier and investor borrowers.
While the variable interest rate is higher than other loans on the market, you do have the option to split this loan into both a fixed and variable option, giving the best of both worlds and a little more certainty over your repayment amounts.
With the BOQ Economy Loan you have the option of paying your loan in either weekly, fortnightly or monthly installments as well as having the option to pay interest only for a period of five years and make unlimited additional repayments.
While there is no 100 percent offset facility, you are able to access any additional repayments through the redraw facility, however there is a minimum withdrawal amount.
For borrowers with a small deposit, the BOQ Economy Loan will lend you up to 95 percent of the purchase price, however if you want to avoid paying lenders mortgage insurance you will need at least 20 percent saved.
Who is the BOQ Economy Loan good for?
If you’re looking for an uncomplicated, no frills loan then the BOQ Economy Loan may be worth considering.
It’s a simple loan with enough features to appeal to a wide range of borrowers.
First home buyers and owner occupiers might benefit from the low deposit required, however refinancers and investors may be put off by the lack of offset account and high upfront fees.
Also, borrowers should factor in the high interest rates and ongoing fees into their calculations before deciding on this loan.
Review - What RateCity says
If you’re looking for a loan packed with bells and whistles, this loan probably isn’t it. In saying that, it is a fuss-free finance option, with a simplicity that’s appealing to borrowers looking for a manageable loan.
There are some considerations worth noting, specifically the high upfront fees and lack of 100 percent offset account which may be off putting for investors and refinancers. Also, the high interest rates should be considered before signing up.
Although it’s uncomplicated, there is still flexibility in the loan like the ability to pick your repayment frequency and make unlimited additional payments.
If you’ve got a small deposit and you’re looking for a loan that gives the best of both fixed and variable worlds, then the BOQ Economy Loan is worth a look.
BOQ Economy Loan Options
For more information about the BOQ Economy Loan options, please click the links below.