Bank of Queensland raise IO investor rates

Bank of Queensland raise IO investor rates
Bank of Queensland raise IO investor rates

The Bank of Queensland is among five lenders to have increased their mortgage rates.

BoQ, one of the nation's major regional banks, is increasing variable home loan rates for interest-only owner occupiers and investors by up to 15 basis points.

"Funding costs have significantly risen since February and have primarily been drive by an increase in 30 and 90 day BBSW rates, along with competition for term deposits," said Anthony Rose, Bank of Queensland's acting group executive.

"While the bank has absorbed these costs for some time, the changes announced will help to offset the impact of increased funding costs," Rose said.

The interest rate changes are effective July 2.

BOQ today announced variable home loan rate for owner occupiers (principal and interest repayments) will increase by 0.09 per cent, per annum;

  • Variable home loan rate for owner occupiers (interest only repayments) will increase by 0.15 per cent, per annum;

  • Variable home loan rate for investors (principal and interest and interest only repayments) will increase by 0.15 per cent, per annum; and

  • Owner occupier and investor Lines of Credit will increase by 0.10 per cent, per annum.

Anthony Rose said the decisions "are always difficult" and BOQ balances the needs of our borrowers and depositors when making changes.

Elsewhere rates in some cases are up by 40 basis points.

It comes as the lenders suggest they can no longer absorb the impact of rising funding costs on net interest margins.

IMB, the nation's third largest building society, has raised standard variable interest rates by 8 basis points for new and existing home loans.

AMP Bank has hiked rates on some investment products by up to 40 basis points. 

Greater Bank and Homestar Finance are also raising some rates by 10 basis points.

 

Tags: 
Interest Rates Bank Of Queensland

Comments

Be the first one to comment on this article
What would you like to say about this project?