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Suncorp cuts mortgage rates by up to 70bps

Suncorp cuts mortgage rates by up to 70bps

The non-major lender has reduced interest rates across its owner-occupied and investment fixed rate home loan offerings.

Suncorp Bank has announced fixed mortgage rate cuts of up to 70 basis points, effective for new business from 21 March.

For new five-year fixed owner-occupied principal & interest home loans with an LVR of less than 95 per cent, Suncorp will decrease rates by 20 basis points, from 4.34 per cent to a new rate of 4.14 per cent.

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Additionally, for new five-year fixed investment principal & interest home loans with an LVR of less than 90 per cent, Suncorp will decrease rates by 70 basis points, from 4.84 per cent to a new rate of 4.14 per cent.

Three-year and five-year fixed interest-only mortgage rates with an LVR of less than 90 per cent have also been repriced by Suncorp, declining by 20 basis points and 70 basis points, respectively.  

Reflecting on Suncorp’s changes, comparison website Canstar’s group executive of financial services, Steve Mickenbecker, said that the bank has responded to a moderation of wholesale funding costs.

“The reductions follow the easing in recent months of wholesale funding costs, in particular for the longer terms, and follows similar moves by a number of other lenders,” Mr Mickenbecker said.

Mr Mickenbecker added that Suncorp’s decision to price its investment home loans was also a response to weakened demand from investors.

“The Suncorp move also shows just how severe the slowdown in demand for investment lending has become, with the investment rate generally at parity with the owner-occupied rate,” he continued.

“For some interest-only terms, it has even overshot the mark, leaving the investment rate [20 basis points] below owner-occupied.”

Suncorp is the latest lender to buck the trend of out-of-cycle mortgage rate hikes, with the likes of Heritage BankTeachers Mutual Bank, and Adelaide Bank reducing rates by up to 92 basis points.

 [Related: Wholesale funder lifts rates as out-of-cycle hikes continue]

Suncorp cuts mortgage rates by up to 70bps
Suncorp
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