Bank of Queensland raises investor home loan rates but on existing loans
Bank of Queensland has announced it is to lift rates on its residential investment loans by 0.29% from 10th August, but only on existing loans, known as the "back book". The bank becomes the latest to join the ever-increasing list of banks lifting rates and tightening access to loans for property investors, due to recent regulatory requirements by the Australian Prudential Regulatory Authority (APRA).
Bank of Queensland has joined the push to raise investor home loan rates, bumping its standard variable rate up 0.29 per cent in line with other banks.

But it has effectively raised rates on its existing loans, known as the "back book", while keeping most of its new loans at the same rate. It hopes to boost squeezed margins but also take some market share.

The government is more likely to bail-out Bendigo, which has a bigger domestic deposit book than Macquarie, than the millionaire's factory. Credit: Glenn Hunt

High mortgage competition in recent years has hit small lender margins harder than the big banks. BoQ's net interest margin – the difference between its funding costs and interest income – was the worst of all the majors and regional banks in 2014 at 1.82 per cent, according to Bell Potter analyst TS Lim.

The bank, which has about a $25 billion mortgage book, said it would raise its standard variable investment housing rate for residentially secured investment loans from 5.56 per cent to 5.85 per cent on August 10.