We're just over one week removed from the Federal Budget, and the jury's still out (read: experts are at loggerheads) on if it's an inflationary one. 

My Freedom of Information Request is still sitting with the finance department to find out what exactly is in the $17 billion blackhole of 'Net other investments' that are held off the government's balance sheet.

The government can essentially hold certain items away from the budget surplus/deficit equation because they use mark-to-market accounting to consider them investments.

There's some big whoppers on there, including student loans, and the Housing Australia Future Fund and many demand-side first home buyer helpers. So, the government is banking on home prices going up. 

And the cosmic ballet of home loan rate movements marches on. It was a pretty 'nothing' sort of week, with only a handful moving rates.

Bank of Queensland adjusts fixed rates upwards

BOQ moved rates north on certain fixed terms by between 10 and 45 basis points. 

A couple of noteworthy inclusions were:

  • Residential Fixed 2 Years Discount 90% LVR: 20 basis point rise to 6.09% p.a. (6.45% p.a. comparison rate*)
  • Investment Fixed 2 Years Discount 90% LVR: 30 basis point rise to 6.24% p.a.  (6.64% p.a. comparison rate*)

A host of other products fixed for between two and five years were also increased.

HSBC does similar

HSBC, Australia's tenth-largest bank in terms of home loan portfolios, adjusted fixed rates north by between 20 and 30 basis points.

Some examples include:

  • Residential Fixed P&I 1 Year 80%: 20 basis point increase to 6.39% p.a. (7.45% p.a. comparison rate*)
  • Investment Fixed P&I 1 Year 80%: 20 basis point increase to 6.59% p.a. (7.65% p.a. comparison rate*)

A host of other terms between one and five years were also increased, including packaged loans which feature a slight interest rate discount.

Other challenger bank movements

  • Bank of Sydney hikes variable-rate owner occupier and investment home loans by between 5 and 15 basis points.
  • Horizon Bank varies variable rates for owner occupiers and investors by 10 basis points.

Customer-owned bank movements

  • Beyond Bank cuts fixed owner occupier and investment rates by 10 basis points.
  • Newcastle Permanent hikes variable owner occupier and investment rates by 5 basis points.
  • Queensland Country Bank hikes fixed rates for owner occupiers and investors by 30 basis points.

Photo by Nico Smit on Unsplash

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Harrison Astbury
Harrison Astbury
Editor and Financial Analyst

Harrison is InfoChoice's editor and market commentator. With years of experience at some of Australia's largest comparison sites and media organisations, Harrison is passionate about all things banking.

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