One of Australia’s non-major lenders has enhanced the discount on two of its mortgage packages in a bid to win greater business and steal market share away from the majors.
Last week, Suncorp Bank announced it would extend the discount on its Back to Basics Home Loan from 0.15 per cent to 0.20 per cent.
In addition, the bank said it would waive the loan establishment fee associated with this particular mortgage.
Moreover, Suncorp Bank said it would extend the discount on its My Home Package to 0.90 per cent from 0.88 per cent for lending between $250,000 to $500,000 and with a loan to value ratio of 80 per cent or under.
For lending greater than $500,000 on loans with an LVR less than 80 per cent, the discount is increased again to 1.00 per cent.
Speaking to The Adviser, Suncorp Bank's general manager intermediaries Steven Heavey said the enhanced discounts on the lower LVR mortgages was an important milestone for the lender, as it has been looking to increase its presence in this particular lending space for some time.
“We have been considered by brokers to be a lender that primarily plays in the high LVR space but Suncorp strengths are across the broader spectrum of lending with a full product set and should be considered by brokers for all types of lending,” he said.
“The competitiveness of these offers are an indication that we are serious of sub 80 per cent loan to value ratio business.”