Suncorp goes it again in the Westpac aftermath

Australia’s sixth largest lender, Suncorp, is lifting its variable rates for the second time in less than six months.

Today’s announcement, which cites the sustained increase in cost of funding, will see all variable home loan rates rise by 0.17 percentage points. This follows on from its 28 March rate hike of up to 0.12 percentage points.

The hike comes two days after Australia’s second biggest bank, Westpac, hiked rates for their variable customers.

Adelaide Bank has also chosen to follow in Westpac’s wake, hiking rates today by up to 0.40 percentage points.

RateCity research director Sally Tindall said the banks were fighting each other to get their rate hike releases out the door.

“Westpac was always going to be a trigger for other banks. Today, the floodgates are well and truly open,” she said.

“Suncorp customers will be miffed that they’ve been served up two hikes in less than six months.

“Meanwhile, Adelaide Bank interest-only variable customers will be bruised by the fact their bank has delivered them one of the biggest out-of-cycle hikes so far.

“The message for Australian mortgage holders is now clear. Be prepared to shell out extra for your home loan or consider refinancing.

“Despite the hikes, banks are desperate to get new business in the door, throwing rock-bottom rates on the table, but only for new customers.

“If your bank has hiked rates and you own at least 20 per cent of your home, now could be the time to start shopping for a new home loan,” she said.

Main players left to hike

• Commonwealth Bank
• NAB
• ANZ
• Bankwest

Adelaide Bank rate hikes

Announced 31 August 2018:

• Owner-occupier, principal and interest: 0.12 percentage points
• Owner-occupier, interest-only: 0.35 percentage points
• Investor, principal and interest: 0.12 percentage points
• Investor, interest-only: 0.40 percentage points

Suncorp rate hikes

Effective date: 14^th September 2018:

• Increase by 0.17 percentage points for all variable home loan rates

Effective date: 28^th March 2018:

• Owner-occupier, principal and interest: 0.05percentage points
• Owner-occupier, interest-only: 0.12percentage points
• Investor, principal and interest: 0.08percentage points
• Investor, interest-only: 0.12percentage points

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