A move by a non-major to trim its home loan rates is welcome, the FBAA's Peter White has said, but businesses need a hand as well.
Suncorp yesterday announced discounts on its variable Back to Basics product and 3-year fixed product. The lender cut its Back to Basics product to 4.65% (5.21% comparison rate) and its 3-year fixed loan to 4.84% (5.67% comparison rate).
FBAA president Peter White welcomed the cuts, but has called on lenders to begin passing rate cuts on to small business.
"Given Suncorp is able to reduce its rates on residentially secured properties, it would also be great to see the same benefit passed on to business borrowers who use their residential homes as security for their business debts,” White said.
And it does seem businesses could use the help. A Roy Morgan report shows business confidence is at its lowest level in two years. White suggested a raft of rate cuts could help alleviate the problem, and have positive effects for the entire economy.
"This will enable small business owners to continue to trade profitably and to possibly expand their businesses and employ more people."