Non-major bank Suncorp has announced it will increase its variable interest rates on new and existing investor home loans by 0.15% per annum.
The changes will come into effect from 13 December and apply to Back to Basics, Standard Variable and Access Equity products. The change puts Suncorp’s standard variable rate for investor loans at 5.87% p.a. Back to Basics and Access Equity will also increase their rates to 5.24% p.a. and 6.02% p.a. respectively.
Steven Kluss, acting CEO for banking & wealth, said the decision to raise rates was based on a number of factors including continuing to deliver value to customers.
“It’s important to understand that most of our existing investor home loan customers are paying rates well below the headline 5.87% p.a. standard variable rate for investor loans as a result of our products’ various features and benefits,” he said.
With bank funding driven more by changes in bond rates rather than cash rates, this puts pressure on costs for variable home loans, Kluss said, especially with rates drifting higher since record lows in the middle of the year.
“The decision to increase rates for investor loans was taken to balance the needs of all our stakeholders including borrowers, savers, shareholders and regulators.”
Looking at other Suncorp products, the rates for owner-occupied loans and small business lending will remain the same.
Two more majors spike rates
Major bank hikes mortgage rates
Banks hike rates amid growing concern