Suncorp slashes home loans by up to 100 basis points

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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

Variable
More details
  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws

Variable Home Loan (LVR < 70%)

  • Min 30% deposit
  • No monthly or ongoing fees, add 0.10% for offset
  • Unlimited redraws
Variable
More details
REFINANCE ONLY
  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
REFINANCE ONLY

Variable Rate Home Loan – Refinance Only

  • A low-rate variable home loan from a 100% online lender. Backed by the Commonwealth Bank.
Variable
More details
AN EASY DIGITAL APPLICATION
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
AN EASY DIGITAL APPLICATION

Neat Variable Home Loan (Principal and Interest) (LVR < 60%)

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
Variable
More details
NO ONGOING FEES
  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster
NO ONGOING FEES

Yard PAYG Home Loan (Principal and Interest) LVR ≤ 80%

  • No ongoing fees - None!
  • Unlimited additional repayments
  • Easy online application, find out if you're approved quick!
  • Redraw- Access your additional payments if you need them
  • Use the app to get loan insights to help you pay off your home loan faster

Base criteria of: a $400,000 loan amount, variable, fixed, principal and interest (P&I) home loans with an LVR (loan-to-value) ratio of at least 80%. However, the ‘Compare Home Loans’ table allows for calculations to be made on variables as selected and input by the user. All products will list the LVR with the product and rate which are clearly published on the Product Provider’s web site. Monthly repayments, once the base criteria are altered by the user, will be based on the selected products’ advertised rates and determined by the loan amount, repayment type, loan term and LVR as input by the user/you. *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. Rates correct as of August 10, 2022. 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



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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 strives to deliver and edit news and guides that are engaging, thought-provoking, and simple to read.

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