Non-major lender discounts owner occupied and investment variable rates

by Julia Corderoy03 Sep 2015
Non-major lender Suncorp Bank has announced variable rate discounts on owner-occupied and investment lending.

In a note to brokers obtained by Australian Broker, the non-major announced that it will be trimming the standard variable rate on its Home Package Plus product for principal-and-interest owner occupied loans by more than 100 basis points.

Available for new lending from 1 September 2015 to 13 October 2015, Home Package Plus loans with an LVR of 80% or less and a loan amount between $150,000 to $500,000 will receive a standard variable rate discount of 1.30%, to 4.24%. 

For loans with an LVR of 80% or less and a loan amount over $500,000, the standard variable rate will be discounted 1.39%, to 4.15%. Loans over $150,000 with an LVR up to 90% will be cut by 1.20%, to 4.34%. 

Whilst Suncorp recently announced a 27 basis point standard variable rate increase on investment lending to meet regulatory requirements, the non-major has announced various discounts based on loan amounts and LVRs.

For investment loans between $150,000 to $499,999 with an LVR of 80% or less, the standard variable rate will be discounted by 95 basis points, to 4.86%. For loans between $500,000 to $749,999 with the same LVR, the variable rate will be dropped 110 basis points, to 4.71%.

For investment loans greater than $150,000 with an LVR up to 90%, the standard variable rate has been discounted by 55 basis points, to 5.26%.
 

COMMENTS

  • by Dan - Melbourne 3/09/2015 8:47:15 AM

    Finally - because their rates were disgraceful.

  • by Mikal Howard 3/09/2015 9:10:27 AM

    For investment loans, their rates are still out of the market. At least 50 basis points. I'm still wondering whether they want any business at all to be honest. Hardly hear from Suncorp these days.

  • by Dan - Melbourne 3/09/2015 9:15:34 AM

    Mikal - how true! I literally last week asked my business partner to look at Suncorp and what they have to offer - you know, broaden our horizons a little - I almost fell over when I saw their rates - I actually thought my CRM was incorrect, so I called their BDM - let me just say - my CRM wasn't wrong...