Suncorp’s new fixed home loan rates among the lowest on the market

William Jolly By on April 11, 2019
 
Suncorp offering new ultra-low fixed interest rates

Photo by Carles Rabada on Unsplash

Suncorp Bank is now offering fixed home loans with some of the lowest advertised interest rates on the market.

The Brisbane-based bank’s packaged home loans for both owner-occupiers and investors have three-year fixed rates that rival most variable-rate products.

From today, the Home Package Plus Special Offer home loans offer interest rates of:

  • 3.49% p.a. (4.24% comparison rate) for owner occupier, principal and interest borrowers
  • 3.69% (4.50% comparison rate) for investment, principal and interest or interest-only borrowers

Both of these new interest rates are available for loan-to-value ratios (LVR) of up to 90% – that’s a minimum deposit of 10%.

In addition, owner occupier and investment customers can get rates as low as 3.44% and 3.64% respectively if they use Suncorp’s fast refinance (owner-occupied refinancers can also get $1,500 cashback with Suncorp).

It should be noted these are packaged home loan products, meaning borrowers would need to combine the loan with a Suncorp bank account to be eligible for the rate.

This means they come with a higher comparison rate compared to other non-packaged products, which reflects higher fees.

Suncorp’s packaged products come with a $375 package fee, but the comparison rate on the special offer products are still much lower than its non-packaged products.

Suncorp’s standard fixed owner-occupier loan, for example, has an advertised rate of 3.94% and a comparison rate of 5.43%.

On its website, Suncorp promises to waive this $375 fee in the first year.

How do these new rates compare?

These new interest rates are among the lowest on the market at the time of writing, and are a testament to the sheer number of rate drops there have been lately, particularly when it comes to fixed rates.

Big four banks Westpac and the Commonwealth Bank also began offering lower fixed home loan interest rates this week, but their new rates pale in comparison to Suncorp’s latest rates.

Commbank’s new three-year fixed package home loan for owner-occupiers offers a rate of 3.79% (4.98% comparison rate) while Westpac is offering 3.89% (4.92% comparison rate) on its three-year fixed package.

These rate cuts follow a similar move in late March, where Suncorp cut some of its other fixed-rate home loans by as much as 70 basis points.

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