Suncorp raises home loan rates

Mark BristowMar 21, 2018( 2 min read )

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Suncorp is the latest Australian bank to increase its interest rates on home and small business loans, in response to increased funding costs as well as regulatory changes.

The changes, set to take effect as of 28 March 2018, will see Variable Owner Occupier Principal and Interest rates increase by 0.05% p.a.; Variable Investor Principal and Interest rates increase by 0.08% p.a.; and Variable Interest Only rates increase by 0.12% p.a.

Suncorp’s Variable Small Business rates will also increase by 0.15% p.a., while Access Equity (Line of Credit) rates will increase by 0.25% p.a.

Suncorp banking & wealth CEO, David Carter, said that the bank’s funding costs have been steadily rising since the end of October, driven by the outlook for US interest rates, as well as domestic factors.

“As a result, we have seen the key base cost of funding, being the three-month Bank Bill Swap Rate (BBSW), rise approximately 0.20%. This increase results in higher interest costs to our wholesale funding, as well as our retail funding portfolio, such as term deposits.”

“Additionally, APRA released its consultation paper on capital levels for banks in February, which will require all banks to hold additional capital for all investment and interest-only loans.”

Other Australian banks that have made changes to their home loan interest rates in 2018 include St.George and ING, who both increased their fixed interest mortgage rates.

Suncorp product	Loan purpose	Repayment type	Current rate	Increase	New rate
Standard variable	Owner occupier	P&I	5.55% p.a.	+0.05% p.a.	5.60% p.a.
Back to basics	Owner occupier	P&I	4.97% p.a.	+0.05% p.a.	5.02% p.a.
Standard variable	Investor	P&I	5.99% p.a.	+0.08% p.a.	6.07% p.a.
Back to basics	Investor	P&I	5.36% p.a.	+0.08% p.a.	5.44% p.a.
Standard variable	Owner Occupier	IO	5.56% p.a.	+0.12% p.a.	5.77% p.a.
Back to basics	Owner occupier	IO	5.07% p.a.	+0.12% p.a.	5.19% p.a.
Standard variable	Investor	IO	6.37% p.a.	+0.12% p.a.	5.77% p.a.
Back to basics	Investor	IO	5.74% p.a.	+0.12% p.a.	5.86% p.a.
Residential line of credit			6.02% p.a.	+0.25% p.a.	6.27% p.a.
Small business essentials			5.14% p.a.	+0.15% p.a.	5.29% p.a.

Mark Bristow

Senior Financial Writer

Mark Bristow is a senior financial writer for RateCity and an experienced analyst, researcher, and producer. Working for over ten years, Mark previously wrote and researched commercial real estate at CoreLogic, and has seen articles published at Lifehacker and Business Insider, among others. Most recently, Mark has joined RateCity working across finance as a whole. Whatever the topic, Mark’s goal is always to provide simple solutions to complex problems.

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Suncorp raises home loan rates

Related news

Is this the end of rate cuts? What the RBA is doing instead

Home lending continues to fall.. but for how long?

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Live-in Variable Loan (Principal and Interest)

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