Suncorp drops fixed rates

For owner-occupiers:

• two-year base standard P&I fixed rates have been cut by 10 bps to 3.54 per cent (5.22 per cent comparison rate)
• three-year base standard P&I fixed rates have been cut by 20 bps to 3.44 per cent (5.04 per cent comparison rate)
• two-year Package Plus  P&I fixed rates have been cut by 10 bps to 3.39 per cent (4.46 per cent comparison rate)
• three-year Package Plus P&I fixed rates have been cut by 20 bps to 3.29 per cent (4.37 per cent comparison rate)

For investors:

• two-year base standard interest-only fixed rates have been cut by 10 bps to 4.04 per cent (5.66 per cent comparison rate)
• three-year base standard interest-only fixed rates have been cut by 10 bps to 4.04 per cent (5.52 per cent comparison rate)
• two-year Package Plus  interest-only fixed rates have been cut by 10 bps to 3.89 per cent (5.23 per cent comparison rate)
• three-year Package Plus interest-only fixed rates have been cut by 10 bps to 3.89 per cent (5.13 per cent comparison rate)

Suncorp also reduced its variable home loan rates following the Reserve Bank of Australia’s (RBA) back-to-back cuts to the official cash rate.

However, the non-major opted not to pass on the full 25 bps cut on both occasions, instead reducing its variable rates by a cumulative 39 bps.

The non-major bank said the decision to not pass on the full rate was not taken lightly, but Suncorp CEO for banking and wealth, David Carter, said he believes “it is the right one for [its] mortgage and deposit customers”. 

Last month, Suncorp also announced that that it would cut its interest rate floor for mortgage serviceability assessments from 7.25 per cent to 5.5 per cent and increase its buffer from 2.25 per cent to 2.5 per cent.

The changes came in response to the Australian Prudential Regulation Authority’s changes to its home lending guidance.

[Related: Heritage cuts mortgage rates by up to 30bps]