Powered by MOMENTUM MEDIA
subscribe to our newsletter
BOQ lifts mortgage rates

BOQ lifts mortgage rates

The last of the regional banks has joined ME, Suncorp and Bendigo and Adelaide Bank by announcing that it will increase variable home loan rates.

BOQ today announced it will increase interest rates on its variable home loan products by 0.18 per cent.

The increase will see the bank’s Clear Path variable rate home loan lift to 4.60 per cent and the standard variable rate home loan for owner-occupiers move to 5.74 per cent.

Advertisement
Advertisement

BOQ’s standard variable rate home loan for investors will increase to 6.03 per cent

Matt Baxby, BOQ’s group executive retail banking, said the decision was driven by the need to balance growth, risk and margins over the longer term.

“Standardised banks like BOQ still carry much higher funding costs and capital requirements than the major banks and we need to get the balance right between sustainable growth over the longer term, risk and margins,” Mr Baxby said.

“These are always difficult decisions but on balance we believe it is the right one in the current environment.

“The more resilient and financially strong that standardised banks are, the more we can compete on a range of fronts including further investment in our customer-facing systems and processes.”

The new rates will be effective from 20 November 2015.

BOQ lifts mortgage rates
mortgagebusiness

 

Latest News

Westpac and the Commonwealth Bank’s share of the third-party mortgage market has spiked, in contrast to sharp declines from NAB and ANZ, t...

A non-major lender has dropped its fixed mortgage rates, becoming the fourth lender to reprice its offerings over the past two weeks.   ...

The interest lenders earn on mortgages is expected to remain under pressure this year and next, according to Moody’s. ...

FROM THE WEB
podcast

LATEST PODCAST: What drops in fixed rates may mean for the mortgage market

Do you think the banking royal commission recommendations could negatively impact competition in the mortgage market?