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Bank cuts over 1pc from SVR

by Jessica Darnbrough10 minute read
The Adviser

One of Australia’s banks has significantly increased its borrower discount, offering buyers up to 110 basis points off the standard variable rate.

Speaking to The Adviser, Suncorp's general manager, Steven Heavey said the lender would offer a 1.05 per cent carded discount on all Home Package Plus loans with a loan to value ratio of less than 80 per cent and borrowings between $250,000 and $499,000.

In addition, borrowers with loans exceeding $500,000 will be given a 1.10 per cent carded discount.

The new offer comes one month after Suncorp Bank launched its 4.83 per cent three-year fixed rate product in their Home Package Plus product (LVR 80% or below).


Mr Heavey said the sharp pricing reflects the lender’s appetite for growth and its commitment to borrowers and brokers.

“We have a real appetite for growth and we want to send a signal to the market to let them know we are back,” he said.

“We have made a lot of changes to our back office and I now think we are one of the best kept secrets in the lending space. We have been on a journey over the last 12 to 18 months. We knew our back-office processes required improvement and we feel as though we have managed to do just that.

“We now have significant capacity. In that vein, we could double business flows tomorrow and service levels would not be impacted.”

Mr Heavey said while some brokers may have had a substandard experience with the bank in the past, he can assure brokers that things are different now.

“The amount of change we have gone through and the improvements we have made to our service proposition means brokers should have confidence when dealing with Suncorp. Our whole proposition is based on being a genuine alternative to the majors and we want to give brokers every reason to use us.

“Today, we allow brokers to talk directly to credit assessors over the phone. Better yet, we will not leave brokers waiting on the phone for answers. All calls are answered within two minutes.

“The majority of improvements we have made are designed to improve broker effeciency and I really look forward to brokers giving Suncorp another chance to show how far we have come."

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