Powered by MOMENTUM MEDIA
SUBSCRIBE TO OUR NEWSLETTER SIGN UP
‘Significant’ spike in funding costs prompts rate hike

Website Notifications

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

‘Significant’ spike in funding costs prompts rate hike

arrow up coins arrow up coins
Reporter 2 minute read

BOQ has announced that it will be increasing interest rates across its variable home loans and lines of credit for owner-occupiers and investors.

The non-major’s variable home loan rate for owner-occupiers (principal and interest repayments) will increase by 0.09 of a percentage point per annum.

Variable home loan rate for owner-occupiers (interest-only repayments) will increase by 0.15 of a percentage point per annum.

Variable home loan rate for investors (principal and interest and interest-only repayments) will increase by 0.15 of a percentage point per annum, and owner-occupier and investor lines of credit will increase by 0.10 of a percentage point per annum.

Anthony Rose, acting group executive, retail banking, said that the decision is largely due to the increased cost of funding.

Advertisement
Advertisement

“Funding costs have significantly risen since February this year and have primarily been driven by an increase in 30 and 90-day BBSW rates, along with elevated competition for term deposits.

“While the bank has absorbed these costs for some time, the changes announced today will help to offset the ongoing impact of the increased funding costs.

“These decisions are always difficult and BOQ balances the needs of our borrowers and depositors when making changes.”

The interest rate changes are effective beginning Monday, 2 July 2018.

‘Significant’ spike in funding costs prompts rate hike
arrow up coins
TheAdviser logo
arrow up coins
James Mitchell

James Mitchell

James Mitchell has over eight years’ experience as a financial reporter and is the editor of Wealth and Wellness at Momentum Media.

He has a sound pedigree to cover the business of mortgages and the converging financial services sector having reported for leading finance titles InvestorDaily, InvestorWeekly, Accountants Daily, ifa, Mortgage Business, Residential Property Manager, Real Estate Business, SMSF Adviser, Smart Property Investment, and The Adviser.

He has also been published in The Daily Telegraph and contributed online to FST Media and Mergermarket, part of the Financial Times Group.

James holds a BA (Hons) in English Literature and an MA in Journalism.

 

FROM THE WEB
more from the adviser
Bank introduces review period for broker commissions

A lender has announced that it will alter the manner in which it ...

Risks flagged amid lending policy changes

An industry association has issued a warning over the “unintend...

Broker urges banks to accept APRA reforms

A Perth-based mortgage broker has called on banks to green-light ...