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Suncorp discounts variable mortgage rates

Suncorp discounts variable mortgage rates

Suncorp has recently increased the discount on selected variable rate home loans for new customers by ten basis points.  

The interest rate on the Back To Basics principal and interest mortgage fell from 3.79% to 3.69% for owner occupiers, and from 4.09% to 3.99% for investors.

The interest-only rate for investors was also cut, from 4.49% to 4.39%.

MortgageOld rateNew rateChangeComparison Rate
Suncorp Back to Basics Personal/Owner Occupied Principal & Interest (LVR ≤90%)3.79%3.69%-0.10%3.70%
Suncorp Back to Basics Personal/Owner Occupied Principal & Interest (LVR > 90% – ≤95%)4.09%3.99%-0.10%4.00%
Suncorp Back to Basics Investment Principal & Interest (LVR ≤90%)4.09%3.99%-0.10%4.00%
Suncorp Back to Basics InvestmentInterest Only (LVR ≤90%)4.49%4.39%-0.10%4.15%

Suncorp joins Bendigo Bank and Credit Union SA in cutting selected variable interest rates this month, while several other lenders have raised their own rates.

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Fact Checked -

This article was reviewed by Property & Personal Finance Writer Nick Bendel before it was published as part of RateCity's Fact Check process.

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Learn more about home loans

When do mortgage payments start after settlement?

Generally speaking, your first mortgage payment falls due one month after the settlement date. However, this may vary based on your mortgage terms. You can check the exact date by contacting your lender.

Usually your settlement agent will meet the seller’s representatives to exchange documents at an agreed place and time. The balance purchase price is paid to the seller. The lender will register a mortgage against your title and give you the funds to purchase the new home.

Once the settlement process is complete, the lender allows you to draw down the loan. The loan amount is debited from your loan account. As soon as the settlement paperwork is sorted, you can collect the keys to your new home and work your way through the moving-in checklist.

What happens to my home loan when interest rates rise?

If you are on a variable rate home loan, every so often your rate will be subject to increases and decreases. Rate changes are determined by your lender, not the Reserve Bank of Australia, however often when the RBA changes the cash rate, a number of banks will follow suit, at least to some extent. You can use RateCity cash rate to check how the latest interest rate change affected your mortgage interest rate.

When your rate rises, you will be required to pay your bank more each month in mortgage repayments. Similarly, if your interest rate is cut, then your monthly repayments will decrease. Your lender will notify you of what your new repayments will be, although you can do the calculations yourself, and compare other home loan rates using our mortgage calculator.

There is no way of conclusively predicting when interest rates will go up or down on home loans so if you prefer a more stable approach consider opting for a fixed rate loan.

What is the best interest rate for a mortgage?

The fastest way to find out what the lowest interest rates on the market are is to use a comparison website.

While a low interest rate is highly preferable, it is not the only factor that will determine whether a particular loan is right for you.

Loans with low interest rates can often include hidden catches, such as high fees or a period of low rates which jumps up after the introductory period has ended.

To work out the best value for money, have a look at a loan’s comparison rate and read the fine print to get across all the fees and charges that you could be theoretically charged over the life of the loan.

What is 'principal and interest'?

‘Principal and interest’ loans are the most common type of home loans on the market. The principal part of the loan is the initial sum lent to the customer and the interest is the money paid on top of this, at the agreed interest rate, until the end of the loan.

By reducing the principal amount, the total of interest charged will also become smaller until eventually the debt is paid off in full.