Suncorp slashes home loans by up to 100 basis points

author-avatar By on March 05, 2021
Suncorp slashes home loans by up to 100 basis points

This morning, some of Suncorp's rate changes came into effect, including a couple of home loans cut by a full percentage point.

The home loans in question were the 'Home Package Plus' products for owner occupiers paying interest-only, fixed for two and three years with a maximum loan-to-value ratio (LVR) of 90%: 

  • Two Years: Down to 2.74% p.a. (3.94% p.a. comparison rate*)
  • Three Years: Down to 2.74% p.a. (3.85% p.a. comparison rate*)

The equivalent non-packaged loans were also cut by a full percentage point, but the advertised rate is 15 basis points higher, as seen below:

  • Non-Package Two Years: Down to 2.89% p.a. (4.76% p.a. comparison rate*)
  • Non-Package Three Years: Down to 2.89% p.a. (4.60% p.a. comparison rate*)

As always, check the comparison rate, and check the fees associated with both packaged, and standard home loans.

Other noteworthy Suncorp home loans to get slashed include the 'Home Package Plus' line, again for owner occupiers, but this time paying principal & interest and fixed for one year.

These home loans were cut by 25 basis points, and the comparison rate differs based on the size of the deposit:

  • <80% LVR: Down to 2.04% p.a. (2.92% p.a. comparison rate*)
  • <90% LVR: Down to 2.04% p.a. (3.04% p.a. comparison rate*)

Note, these two home loans are listed as 'special offers', meaning they could end at any time.

What about investors?

Suncorp also changed an incredibly wide variety of rates for investors - again, mostly in the fixed space. Some more noteworthy ones included:

  • Inv Home Package Plus Fixed P&I 80% 2 Years: 21 basis point cut to 2.28% p.a. (3.20% p.a. comparison rate*)
  • Inv Fixed P&I 2 Years 90%: 21 basis point cut to 2.73% p.a. (5.10% p.a. comparison rate*)

Some interest-only home loans also got a haircut, which are favoured by some investors. Noteworthy ones include:

  • Inv Home Package Plus Fixed IO 80% 2 Years: 10 basis point cut to 2.49% p.a. (3.22% p.a. comparison rate*)
  • Inv Fixed IO 2 Years 90%: 10 basis point cut to 2.94% p.a. (5.14% p.a. comparison rate*)

Archistar chief economist Dr Andrew Wilson said the investor market is creeping back but remains at 'record low' levels.

"Investors have clearly now joined the stampede of buyers rushing housing markets, but the overall home loan market share of investors remains at record low levels, offsetting any concerns by the RBA and financial regulators of potential market disruption," he said.

“Although investor lending is on the rise, the overall residential loan market share remains at record low levels with current strong prices growth clearly driven by unprecedented owner-occupier lending activity."



Buying a home or looking to refinance? The table below features home loans with some of the lowest interest rates on the market for owner occupiers.

Lender
Advertised rate Comparison rate Monthly repayment Rate TypeOffsetRedrawOngoing FeeUpfront FeesLVRLump Sum RepaymentAdditional RepaymentsPre-approval
VariableMore details
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
LIMITED TIME OFFER

Smart Booster Home Loan Discounted Variable - 2yr (LVR < 80%)

  • Fast turnaround times, can meet 30-day settlement
  • For purchase and refinance, min 20% deposit
  • No ongoing or monthly fees, add offset for 0.10%
VariableMore details
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
100% FULL OFFSET ACCOUNTNO APPLICATION FEE OR ONGOING FEES

Low Rate Home Loan - Prime (Principal and Interest) (Owner Occupied) (LVR < 60%)

  • No upfront or ongoing fees
  • 100% full offset account
  • Extra repayments + redraw services
VariableMore details
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
REFINANCE IN MINUTES, NOT WEEKS

Nano Home Loans Variable Owner Occupied, Principal and Interest (Refinance Only)

  • Refinance only. Fast online application
  • No Nano fees. Free 100% offset sub account
  • Mobile app, Visa debit card & instant payments
VariableMore details
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
YOU COULD WIN $100k TO PAY DOWN YOUR LOAN*

Owner Occupier Accelerates - Celebrate (LVR < 60%) (Principal and Interest)

  • For a chance to win $100K towards your home loan, apply with Athena before Oct 31 & be approved by Dec 15
  • We lower your rate based off how much you’ve paid down your loan
  • Automatic rate match
VariableMore details
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^
AN EASY ONLINE APPLICATION

Yard Home Loan (Principal and Interest) (Special) (LVR < 70%)

  • Unlimited additional repayments
  • Unlimited free redraws
  • Optional 100% offset can be added for $120 p.a.^

Rates correct as of October 18, 2021. View disclaimer.

Question mark over 'record low' fixed home loan rates

Fixed home loans grew their marketshare in 2020, with the likes of CommBank indicating that its fixed loan book grew 38% in the second half of 2020 compared to the first half.

One big reason for this is the Reserve Bank's 'term funding facility' (TFF), which is providing up to $200 billion in low-cost funding for banks, repaid over three years.

With the Reserve Bank due to 'reshape' the TFF in June, this could spell the end for 'record low' fixed rates by July according to Firstmac CFO James Austin.

“If you look at where the banks are offering mortgage rates, their variable rates are not down, they’re still very expensive," he told Mortgage Professionals Australia.

“Those fixed rates will disappear but customers who have been put into these sub-2% rates, at the end of three years they are going to be repricing fairly heavily to the bank’s standard variable - so just question whether that’s in the best interest of the customer.”


Full disclosure: Firstmac is a non-bank lender, and is parent company of this website.

Photo: Harrison Astbury

Disclaimers

The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered which includes retail products from at least the big four banks, the top 10 customer-owned institutions and Australia’s larger non-banks:

  • The big four banks are: ANZ, CBA, NAB and Westpac
  • The top 10 customer-owned Institutions are the ten largest mutual banks, credit unions and building societies in Australia, ranked by assets under management in November 2020. They are (in descending order): Great Southern Bank, Newcastle Permanent, Heritage Bank, Peoples’ Choice Credit Union, Teachers Mutual Bank, Greater Bank, IMB Bank, Beyond Bank, Bank Australia and P&N Bank.
  • The larger non-bank lenders are those who (in 2020) has more than $9 billion in Australian funded loans and advances. These groups are: Resimac, Pepper, Liberty and Firstmac.
  • If you click on a product link and you are referred to a Product or Service Provider’s web page, it is highly likely that a commercial relationship exists between that Product or Service Provider and Savings.com.au

Some providers' products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider's web site.

In the interests of full disclosure, Savings.com.au, Performance Drive and Loans.com.au are part of the Firstmac Group. To read about how Savings.com.au manages potential conflicts of interest, along with how we get paid, please click through onto the web site links.

*The Comparison rate is based on a $150,000 loan over 25 years. Warning: this comparison rate is true only for this example and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

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author-avatar
Harrison is Savings.com.au's Assistant Editor. Prior to joining Savings in January 2020, he worked for some of Australia's largest comparison sites and media organisations. With a keen interest in the economy, housing policy, and personal finance, Harrison is passionate about breaking down complex financial topics for the everyday consumer.

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