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Despite the reserve bank keeping the cash rate the same, lenders are still increasing their rates.
Bank of Queensland (BOQ) is the latest lender to announce a hike, with rates for its variable home loans and lines of credit for owner occupiers and investors to go up next week.
Anthony Rose, acting group executive, retail banking said today’s announcement is largely due to the increased cost of funding.
The variable home loan rate for owner occupiers (principal and interest repayments) will increase by 0.09% per annum.
The variable home loan rate for owner occupiers (interest only repayments) will increase by 0.15% per annum.
The variable home loan rate for investors (principal and interest and interest only repayments) will increase by 0.15%, per annum.
Owner occupier and investor lines of credit will increase by 0.10%, per annum.
Rose said, “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 Monday, 2 July 2018.
