Home Loan Repayment Options
Making repayments shouldn’t be a one size fits all approach. Explore your home loan repayment options, what to do if you’d like to pay more than your minimum monthly repayments and ways to pay down your home loan sooner.
Making repayments shouldn’t be a one size fits all approach. Explore your home loan repayment options, what to do if you’d like to pay more than your minimum monthly repayments and ways to pay down your home loan sooner.
BOQ lets customers repay a number of ways. You can let us do the work for you (by Direct Debit or Automatic Transfer from a specific account) or you may wish to transfer the repayments yourself. Here you’ll find information about the options available to you.
Speak to your BOQ representative, your Broker or a financial adviser to make sure your repayments are set up to meet your budgeting goals.
If you are using another BOQ account, either a mortgage offset account, a BOQ transaction account or a BOQ savings account, you can arrange for an automatic funds transfer to your home loan.
For Principal and Interest repayments, you can choose to make repayments weekly, fortnightly or monthly. You can choose to pay the minimum amount required or you can elect to pay extra (if you’d like to pay off your loan sooner). Note, additional repayments are capped at $10,000 per annum for fixed rate home loans.
For Interest Only home loans, the repayments must be monthly.
This is where you authorise BOQ to deduct the repayment amount automatically from your nominated account held with another Australian financial institution. You just need to complete our Direct Debit form and return it to us if it isn’t already set up or if you’d like to make a change.
For Principal and Interest repayments, you can choose to make repayments weekly, fortnightly or monthly. You can choose to pay the minimum amount required or you can elect to pay extra (if you’d like to pay off your loan sooner). Note, additional repayments are capped at $10,000 per annum for fixed rate home loans.
For Interest Only home loans, the repayments must be monthly.
Important: To avoid any Dishonour Fees from your financial institution, make sure you have enough money in your nominated account when repayments are due.
You can transfer funds from an account you hold with another Australian financial Institution to cover your regular repayments.
Just use BOQ’s BSB 124-001 and the account number noted on your home loan statement or found in Internet Banking.
If you set up an automated transfer from an external account, it is important to know that should your repayments increase due to a rate rise or increased borrowings, you will need to adjust the repayment amount.
Making extra repayments can help you pay off your loan sooner, save on interest and, importantly, build equity. Here are a few ways that you can get ahead of your repayments. (Note that additional repayments are capped at $10,000 per annum on BOQ fixed rate loans).
For Principal and Interest loans, consider making your repayments fortnightly or weekly. We calculate fortnightly repayments by dividing your monthly repayment by two and weekly repayments are your monthly repayment divided by four. So each year you are making an extra monthly repayment and this can save you in interest and cut years off your loan.
Increasing your regular repayments by even a small amount can help reduce the total interest you pay over the life of your loan and the length of the loan term.
Put spare cash to good use by making ad hoc home loan repayments whenever you can.
With BOQ’s variable rate loans, you can redraw these additional repayments if you need them at a later date. If you have a variable rate loan (excluding Economy), you can also make extra deposits whenever you like into your mortgage offset account to reduce your interest charges.
Use our repayment calculator to see the difference extra repayments could make to your loan.
Important: There’s no limit to the amount of extra repayments you can make on a variable BOQ home loan (plus you can redraw if you need the money for something else). If you have a fixed rate home loan, you can make extra repayments of up to $10,000 per year. If you pay more, Break Costs may apply. Please also note, you do not have the ability to redraw any extra repayments until the end of the fixed rate term.
Is your loan right for you? Learn more about the different mortgage repayment types and how they could meet your changing home loan needs.
Find out more about interest only home loans which are popular with investors.
Want to own your home sooner or build up your equity? When it comes to your home loan, a few changes today can have a big impact tomorrow. Here’s some handy tips to pay down your home loan faster.