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%.