‘Hyenas’: Customers hit out at Bank of Queensland

Bank of Queensland has been caught out with untrue claims over its subsidiary’s competitive rates offering, after it denied customers the February rate cut.

Exclusive: Under-siege Bank of Queensland’s claim that its subsidiary Virgin Money Australia is still offering competitive rates – despite customers being denied the February rate cut – has been rubbished by new analysis.

The $4 billion bank is the only lender to trouser the 0.25 per cent reduction rather than pass it on to customers who had endured 13 hikes since 2022.

It not only kept the cut from Virgin Money Australia customers, but also denied doctors and dentists who borrow from its BOQ Specialist brand.

BOQ Specialist’s lending rates are not publicly available, but Virgin Money’s are.

BOQ has claimed that despite its decision to take the February cut as pure profit, “Virgin Money home loans are competitive and remain aligned with market.”

That, however, in untrue.

Bank of Queensland AGM of executive chairman Patrick Allaway. Picture: NCA NewsWire / John Gass

A RateCity comparison undertaken at the request of this masthead has found more than 95 per cent of 85 lenders have at least one variable home loan rate under Virgin Money’s best offer, which is 6.44 per cent.

There are advertised rates for comparable loans which are as much as 0.6 percentage points cheaper.

On the average new home loan of $641,000, Virgin Money is $236 a month more expensive than some of the best deals from subsidiaries of other large banks.

Asked about Virgin Money’s uncompetitive rates, a BOQ spokesman said: “Virgin Money Australia has historically offered lower than market rates to stand out against larger competitors.

“Virgin Money Australia continues to offer rates to its existing customers that are competitive and aligned with the market,” the spokesman said.

BOQ has been copping a pasting from customers on social media.

“How good is Virgin Money Australia? They send rate increases at lightning speed but they decline to pass on (the) RBA cut,” wrote Ben Wood on X. “What a bunch of hyenas. I suggest steering clear.”

“Why haven’t you passed on the rate cuts,” asked Brent Blumberg on Instagram. “You guys were so quick to raise them when it was on the up.”

Mainstream Bank of Queensland home loan rates have been cut by 0.25 per cent, although BOQ took a week longer than CBA, NAB and ANZ, only applying the reduction from March 7.

This masthead revealed last week that BOQ boss Patrick Allaway has his mortgage with Westpac, which has passed on the cut in full.

BOQ has refused to say why Mr Allaway and his style coach wife borrow with Westpac. The couple live in an oceanfront property at Avalon on Sydney’s northern beaches.

Originally published as ‘Hyenas’: Customers hit out at Bank of Queensland