Suncorp lifts interest only rates by 0.38 percent

Suncorp has announced new pricing methodology for interest only home lending.

It banking & wealth CEO David Carter said the bank currently calculated interest only rates based on the purpose of the loan, but would now also take into account the type of loan repayment, i.e. owner occupier or investor.

Variable interest rates on existing owner-occupier interest only rates will increase by 0.10% p.a and variable interest rates on all investor interest only rates will increase 0.38% p.a., effective 1 November, 2017.

Variable interest rates on existing principal and interest owner-occupier and investor rates remain unchanged.

“Currently, our interest only home lending is priced at the same rate as principal and interest home lending, however following recent changes in the market we have made changes to our systems to differentiate between borrowers repaying interest only, and those repaying principal and interest,” David Carter told Australian Broker.

“With the market having effectively repriced interest only lending, and with some lenders having opted out of certain aspects of the market, it’s important for us to also support the focus on this type of lending.   



“We are writing to customers this week to advise them of this change and the new interest only rates, which will come into effect on 1 November, 2017."