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”.
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]