Non-major shifts loan rates

by AB09 Jun 2017
Suncorp has today announced several changes to its home lending interest rates to better balance the needs of investors and owner-occupiers, whilst adhering to industry-wide regulatory settings.

For owner-occupiers, Suncorp will reduce two and three-year fixed rates by 0.10% p.a. effective 3 July, 2017.

It will also maintain its exclusive offer for first home buyers, with Suncorp’s Home Package Plus Special Offer for First Home Buyers allowing customers to choose from a standard variable rate, or a five-year fixed rate of 3.99% p.a. on new lending of $150,000 or more.

Variable interest rates on all new and existing investor home loans, as well as new one and two-year investor fixed rates will increase by 0.12% p.a from 3 July, 2017.

The change will bring the Standard Variable rate for investor loans to 5.99% p.a. Investor rates for three and five-year fixed rates remain unchanged.

Suncorp banking & wealth CEO David Carter said the decision would ensure the bank maintained its position relative to regulatory changes, and give additional support to customers in the owner-occupier market.

“We have made a decision to prioritise the owner-occupier market to help customers who are wanting to buy and live in their own home,” Carter said.

“The bank’s interest only and investor profile remains within APRA’s macro-prudential settings because we have been deliberate in shaping the portfolio through our focus on risk selection.

“We responded early to signals by the regulators to improve our position relative to updated macro-prudential settings and with an expectation for modest growth across the portfolio, we need to implement these changes.

“With the market having effectively repriced investor lending and with some lenders having opted out of certain aspects of the investor market, it’s important for us to manage the demand for new business.

“The measurement of new business includes refinancing existing investor loans from other lenders, as well as loans for new investment properties.

“The decision to increase some investor lending rates was also influenced by incremental increases to funding costs, along with the costs involved in compliance.

“The rates across the portfolio remain highly competitive and the majority of customers will continue to pay rates well below the headline rate, due to our products’ various features and benefits.”