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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