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Suncorp Bank has reduced several fixed and variable home loan rates, joining a wave of lenders offering mortgages below the 5% mark.
The bank trimmed fixed rates by as much as 0.40 percentage points across its Home Package Plus range. One-year fixed loans now sit at 5.19 % p.a. for both owner-occupiers and investors, while five-year fixed loans have fallen to 5.39 % p.a. for borrowers with loan-to-value ratios up to 80 %. Two-year fixed rates were lifted slightly by 0.10 percentage points to 4.89 % p.a.
Suncorp also adjusted its interest-only and variable products. Its lowest variable interest-only rate for owner-occupiers with an LVR of up to 60 % is now 5.69 % p.a., while the investor equivalent has dropped to 5.65 % p.a.
The cuts place Suncorp’s lowest two-year fixed rate in line with similar products from ING Bank and Bank of Queensland. Bankwest has also trimmed rates, reducing its Complete and Simple Variable Home Loans by 10 basis points to 5.49 % p.a. for owner-occupiers borrowing up to 80% LVR.
Other smaller lenders have followed suit, releasing fixed products with starting rates below 5%. Illawarra Credit Union introduced two- and three-year fixed options at 4.99 % p.a. and 4.94 % p.a. respectively, while Community First Bank and Pacific Mortgage Group unveiled comparable deals, with Pacific’s two-year fixed rate now at 4.74 % p.a.
The adjustments reflect growing competition in the mortgage market as banks seek to attract borrowers ahead of the Reserve Bank’s November policy meeting. For Suncorp, the move comes amid its ongoing integration with ANZ, a process that new CEO Nuno Matos has identified as a key focus.
