Suncorp Bank has announced that it will no longer charge annual fees on certain mortgage applications.
The bank has estimated that the move will save potential and current Suncorp borrowers $375 a year, or up to $11,250 over 30 years.
Previously, the annual fee waiver was only available for refinancing customers, but this has now been extended to new home loans for purchases, refinances and first home buyers, effective as of last Friday (14 May).
New customers will need to meet a minimum lending of $150,000 with eligible products in the Home Package Plus (the standard variable rate and fixed rate home loans with a one, two, three or five-year term), and the First Home Buyer variable.
According to the non-major bank’s head of consumer lending product, Dylan Atherton, the waiver was extended following popular demand.
He told Mortgage Business: “Suncorp introduced this offer to eligible refinance customers a month ago and, unsurprisingly, it’s been popular with our customers seeking significant benefits over the life of their home loan, instead of upfront cash back which can disappear quickly.
“Given its popularity, we’re excited to extend the offering to potential and existing customers purchasing property and take advantage of saving up to $11,250 over the life of their loan.”
He added that as approximately 80 per cent of Suncorp’s new home loan applicants are for the Home Package Plus currently, the bank expects that the offer will be taken up by the majority of mortgage applicants.
“We expect this number will increase given the attractiveness of the refund offer and the great value that it provides home lending customers,” he said.
When asked by Mortgage Business how Suncorp would reduce the chances of turnaround time delays should a surge in applications arise off the back of the waiver, he said: “We’ve invested heavily in technology and in simplifying our processes to better meet our broker partners and customer needs.
“Additionally, we have aligned our broker and direct channel service levels so that customer outcomes are the same regardless of which channel the customer chooses to originate their loan.
“Turnaround time consistency is a key focus for Suncorp, and we’re pleased our turnaround times have remained steady over the past six months, while application volumes have increased,” Mr Atherton concluded.
The non-major bank has also recently begun offering relief assistance to individual and business customers impacted by a mouse plague in Southern Queensland and NSW.
The disaster relief package is available to customers in Darling Downs – Maranoa, and Toowoomba (Queensland), and Far West and Orana, New England and North West, Central West, Murray, and Riverina (NSW).
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Annie Kane is the editor of The Adviser and Mortgage Business.
As well as writing about the Australian broking industry, the mortgage market, financial regulation, fintechs and the wider lending landscape – Annie is also the host of the Elite Broker and In Focus podcasts and The Adviser Live webcasts.