Non-major fixed rate cut announced

by Madison Utley22 Mar 2019

A non-major has announced decreases to a number of its three and five year fixed rates, with some being cut by up to 0.70%. 

The changes at Suncorp went into effect for new customers yesterday, 21 March.

“The rate changes ensure these fixed rate products are below the market average, to better compete with products that offer the lowest interest rates,” said Canstar finance expert, Steve Mickenbecker.

The owner occupier P&I five year fixed rate loan decreased by 0.20% and the investment five year decreased by 0.70%.

For new owner-occupiers paying P&I, Suncorp’s five year fixed rate home loan decreasing from 4.34% to 4.14% has the potential to save customers thousands in interest.

For interest only, the investment three year fixed rate loan decreased by 0.20% and the five year by 0.70%.

“The Suncorp move shows just how severe the slowdown in demand for investment lending has become, with the investment rate generally at parity with the owner occupied rate,” explained Mickenbecker.

“The reductions follow the easing in recent months of wholesale funding costs, in particular for the longer terms, and follows similar moves by a number of other lenders,” he concluded.

The P&I and interest only packages showed similar decreases.