Bank of Queensland hikes home loan rates for 2019

The Bank of Queensland has become the first bank to officially hike home loan rates out of cycle in 2019.

The decision affects a range of BOQ variable rate loans including their Economy Variable Home Loan which is increasing by 0.11 per cent for both new and existing customers.

Other loans are increasing by up to 0.18 per cent, effective from January 11th.

That increases the price of monthly repayments on a $500,000 dollar loan by $32 and over the life of the loan it will cost an additional $11,369

RateCity.com.au research director Sally Tindall said the bank has cited cost of funding pressures and intense competition in term deposits as the reasons for the hike.

“These cost of funding pressures are affecting most banks so it’s likely we’ll see other lenders follow suit in 2019,” she said"

“A lot of household budgets are feeling the pinch after Christmas. While most families will be able to absorb this hike, some may struggle to come up with the extra cash,” she concluded.

Bank of Queensland is the ninth largest mortgage lender in Australia, according to APRA.