The bank will increase interest rates to most variable home loan products... FBAA questioning proposed funding model for ASIC...
BOQ increases variable rates
The Bank of Queensland (BOQ) will increase interest rates to most variable home loan products by 0.15% per annum, effective 6 January 2017.
The increase will see the Bank’s Clear Path variable rate home loan lift to 4.47% per annum for owner-occupiers and 4.94% per annum for investors. The Standard Variable rate home loan will move to 5.61% per annum for owner-occupiers and 6.08% per annum for investors.
BOQ’s Economy Home Loan rates for owner-occupiers and investors remain unchanged.
BOQ CEO Jon Sutton said, “We will continue to monitor our portfolio and pricing to ensure we get the balance right between growth and profitability,” Sutton said.
“The current low rate environment brings its challenges for all lenders, particularly those with a high proportion of funding through term deposits, which remain at expensive levels.”
FBAA questioning proposed funding model for ASIC
The Finance Brokers Association of Australia (FBAA) remains in ongoing discussions with Treasury and key profile industry stakeholders regarding the proposed funding model for the Australian Securities and Investments Commission (ASIC).
Under its second proposed funding model Australian Credit Licensees (ACL) would pay a yearly base fee of $1000 and those ACL-holding intermediaries (brokers) would pay an additional levy of $1.14 for every extra $10,000 they write above a $100 million threshold is also proposed.
FBAA executive director Peter White says many questions need to be asked about this model and most cannot be answered at this stage because of the limited data available.
“From what we know, the FBAA argues this model will not deliver a fair and equitable outcome."
He said at the last meeting with Treasury, they were advised that the maximum amount ASIC can recover is $15.8 million.
“There are too many unknowns to support the proposed model and ACLs would end up paying much more of the $15.8 million needed to fund ASIC’s Cost of Recovery.”
White said the FBAA would continue discussions with Treasury and ASIC, and the relevant Minister where necessary, and stressed that any implemented funding model won’t launch until 2019.
The Bank of Queensland (BOQ) will increase interest rates to most variable home loan products by 0.15% per annum, effective 6 January 2017.
The increase will see the Bank’s Clear Path variable rate home loan lift to 4.47% per annum for owner-occupiers and 4.94% per annum for investors. The Standard Variable rate home loan will move to 5.61% per annum for owner-occupiers and 6.08% per annum for investors.
BOQ’s Economy Home Loan rates for owner-occupiers and investors remain unchanged.
BOQ CEO Jon Sutton said, “We will continue to monitor our portfolio and pricing to ensure we get the balance right between growth and profitability,” Sutton said.
“The current low rate environment brings its challenges for all lenders, particularly those with a high proportion of funding through term deposits, which remain at expensive levels.”
FBAA questioning proposed funding model for ASIC
The Finance Brokers Association of Australia (FBAA) remains in ongoing discussions with Treasury and key profile industry stakeholders regarding the proposed funding model for the Australian Securities and Investments Commission (ASIC).
Under its second proposed funding model Australian Credit Licensees (ACL) would pay a yearly base fee of $1000 and those ACL-holding intermediaries (brokers) would pay an additional levy of $1.14 for every extra $10,000 they write above a $100 million threshold is also proposed.
FBAA executive director Peter White says many questions need to be asked about this model and most cannot be answered at this stage because of the limited data available.
“From what we know, the FBAA argues this model will not deliver a fair and equitable outcome."
He said at the last meeting with Treasury, they were advised that the maximum amount ASIC can recover is $15.8 million.
“There are too many unknowns to support the proposed model and ACLs would end up paying much more of the $15.8 million needed to fund ASIC’s Cost of Recovery.”
White said the FBAA would continue discussions with Treasury and ASIC, and the relevant Minister where necessary, and stressed that any implemented funding model won’t launch until 2019.
