Powered by MOMENTUM MEDIA
Powered by MOMENTUM MEDIA
subscribe to our newsletter

Lender announces mortgage rate hikes

A bank has announced interest rate hikes of up to 18 basis points on its home loan offerings. 

The Bank of Queensland (BOQ) has announced that, effective Friday, 11 January, it will increase interest rates across several of its home loan products in response to the sustained rise in wholesale funding costs.  

BOQ noted that its rate hikes include an 11-basis point rise  on its Economy Owner-Occupier Principal and Interest product, and an 18 basis point increase on “a number of other BOQ home loans and lines of credit”. 

Advertisement
Advertisement

However, BOQ stated that there will be no change to its Clear Path Owner-Occupier Principal and Interest rates.

Commenting on the changes, Lyn McGrath, BOQ’s group executive, retail banking said: “Continuing funding cost pressures and intense competition for term deposits have contributed to this decision. 

“While decisions like these are never easy, offsetting the impact of these costs ensures we balance the needs of our borrowers, depositors and shareholders."

BOQ’s is the latest bank to hike its home loan rates, after several lenders, including three of the big four banks increased rates throughout 2018, also citing the rise in funding costs.

However, BOQ’s move follows the announcement of a mortgage rate reduction by Commonwealth Bank-owned lender Bankwest, which reduced rates by up to 16 basis points

[Related: Bank drops owner-occupier rates]

 

 

Lender announces mortgage rate hikes
Cost rising arrow up
mortgagebusiness

Charbel Kadib

Charbel Kadib is the news editor on the mortgages titles at Momentum Media.

Before joining the team in 2017, Charbel completed internships with public relations agency Fifty Acres, and the Department of Communications and the Arts.

You can email Charbel on: This email address is being protected from spambots. You need JavaScript enabled to view it.

Latest News

Residential mortgage and deposit growth have offset a COVID-related hit to the non-major bank’s earnings. ...

Reserve Bank governor Philip Lowe has been called to appear before a parliamentary committee to face questioning over the central bank’s m...

The non-bank has successfully priced its PRS 27 transaction, issuing $1 billion worth of bonds backed by Australian mortgages. ...

FROM THE WEB
podcast

LATEST PODCAST: Sharp lending recovery expected to be short-lived

Do you expect to see strong uptake of the HomeBuilder scheme?

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.