BoQ CEO Patrick Allaway’s $7m Sydney home loan is with Westpac amid rates cut outrage

Startling details have emerged about the Bank of Queensland boss’ mortgage for his $7m beachfront home, as customer outrage continues over the lender’s decision to not pass on a rates cut.

Exclusive: The boss of the only Australian bank refusing to drop its home loan rates after last month’s Reserve Bank decision has a mortgage with a different bank that passed the cut on to customers in full.

The Bank of Queensland [BOQ] created a furore when it decided not to pass on rate cuts for thousands of home loan customers of its Virgin Money Australia subsidiary.

But this masthead can reveal that publicly available property records show the borrowing against the bank’s CEO Patrick Allaway’s $7 million Sydney beachfront home is with Westpac.

Bank of Queensland CEO Patrick Allaway. Picture: Jane Dempster/The Australian

The Avalon oasis was listed for sale in 2023 with a reported asking price of $10-11m.

But no buyer was willing to pay that. It is currently valued at about $7m.

The property is jointly owned via a company in which Mr Allaway and his wife each have one share.

Property records show Bank of Queensland’s CEO Patrick Allaway’s $7 million Sydney beachfront home is with Westpac. Picture: realestate.com.au

The view from Mr Allaway’s $7m Sydney beachfront home.

It is unclear why Mr Allaway and his “style coach” wife Libby borrow with Westpac rather than BOQ.

Neither he nor the bank would explain.

“We don’t provide comment on the individual circumstances of any employee,” a BOQ spokesman said.

Westpac was the first lender to reduce rates after the Reserve Bank of Australia lowered the benchmark cash rate by 0.25 percentage points in February.

Virgin Money Australia (VMA), which is wholly owned by BOQ, was thought to be the only lender that was still to pass on that saving to customers.

But this masthead has learned that BOQ has also failed to do so for the doctors, dentists and vets with BOQ Specialist.

The BOQ Specialist website says: “Variable home loan interest rates for new and existing loans will remain unchanged following the RBA’s February 2025 cash rate change.

“BOQ Specialist regularly reviews savings and home loan rates to ensure they balance the needs of savers and borrowers and are competitive in the market.”

Inside Mr Allaways $7m Sydney home. Picture: realestate.com.au

Bedroom with a beach view at Mr Allaway’s Sydney beachfront home. Picture: realestate.com.au

One unhappy BOQ Specialist (BOQS) customer contacted this masthead, claiming the lender had them “over a barrel” until construction of their home was complete.

“Having finally got a reprieve from this never ending high interest cycle it was soul destroying to find out a couple of weeks later that my bank BOQS was not intending to pass any of it on,” the customer, who did not wish to be named, said. “I’ll be refinancing at the next available opportunity.”

BOQ Group’s spokesman it had “given careful consideration to balancing customer interests, market rates, and funding costs. As challenger brands, VMA and BOQS have historically offered lower than market rates to stand out against larger competitors.

“The highly competitive home lending market has improved rates for customers, whilst recent industry-wide margin compression has required smaller banks to consider the sustainability of returns to ensure customers have continued access to lending,” the spokesman added.

That’s a message that’s yet to get through to some customers, who just want to be treated like other BOQ borrowers.

“I don’t understand how BOQ does drop its rates but BOQ Specialist does not,” wrote Peter Stone on Facebook. “I guess it’s time to refinance.”

More Virgin Money Australia customers took to social media to vent their anger.

“Tone deaf,” wrote Jesse Venables on one of X.

“You’re a greedy bank,” another customer wrote on Facebook. “I hope it hurts your shareholders when so many customers leave.”

Originally published as BoQ CEO Patrick Allaway’s $7m Sydney home loan is with Westpac amid rates cut outrage