Suncorp makes move on fixed and variable home loans following RBA rate cut

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By Katherine O'Chee ·

Suncorp officially pulled the trigger on a series of home loan interest rate drops this morning, pushing a few offers below 2.00% in light of the latest Reserve Bank rate cut. 

This includes a massive 40 basis points shaved off the 2-year fixed rate of its Suncorp Fixed Home Loan (Home Package Plus) Special Offer, which now sits at 1.89% (2.94% comparison rate*) - the lowest among comparable rates in the Mozo database.

Or if you’re after a slightly longer term, Suncorp’s 3-year fixed rates also fell sharply by 50 basis points today to 1.99% (2.90% comparison rate*).

Note that these rates are only available to borrowers with loan-to-value ratios (LVRs) of up to 80%. 

For LVRs between 80-90%, your rate would jump slightly to 2.09% (3.07% comparison rate*) for 2-year terms and 2.19% (3.03% comparison rate*) for 3-year terms. 

On the variable rates front, Suncorp went against the grain of many lenders who left their variable rates unchanged and passed on 14 basis points to its customers. This brings the Suncorp Back to Basics variable loan down to a new low of 2.54% (2.55% comparison rate*). 

For comparison, that’s a whopping 78 basis points less than the average variable rate in the Mozo database of 3.32%.

Interested to know what other features and fees Suncorp’s home loans are offering besides competitive rates? Read on for the details …

Suncorp Fixed Home Loan Special Offer (Home Package Plus)
  • Stellar 2-year rates from 1.89% (2.94% comparison rate*) for <80% LVR
  • Up to $3,000 cash bonus when refinancing (apply by 18 December 2020)
  • $0 upfront and ongoing fees in the first year

Looking to lock in a great rate without having to compromise on the bells and whistles? Suncorp’s Fixed Home Loan (Home Package Plus) could be the answer - with ultra-competitive 2-year fixed rates and flexible features including free extra repayments (max. $500 a month) and the option to match repayments to your pay cycle. Plus there are no upfront fees to worry about and the usual $375 annual package fee is also waived in your first year. Just bear in mind you’ll need to set up a Suncorp Everyday Open Bank Account to receive those top rates and fee waivers. As for refinancers, you could also snag a cash bonus up to $3,000 depending on how much you borrow.

Suncorp Back to Basics Variable Loan Special
  • Low variable rates from 2.54% (2.55% comparison rate*) for <80% LVR
  • Up to $3,000 cash bonus for refinancers (apply by 18 December 2020)
  • Free extra repayments and redraw facility

Love an all-rounder? The Suncorp Back to Basics has all the features you would want in a home loan - a seriously low interest rate, zero application and ongoing fees and plenty of flexible repayment options. To snag the sharpest rate of 2.54% (2.55% comparison rate*), you’ll need to have an 80% LVR, borrow at least $150,000 and open a Suncorp Everyday Option Account. With this loan, you can say goodbye to application or ongoing service fees and hello to free extra repayments and redraws, as well as the option to split your loan up into fixed and variable rates. For refinancers, there’s an added benefit too: a cash bonus up to $3,000, depending on the amount you refinance. Now that’s value!

To weigh up Suncorp against other home loan providers in the market, head on over to our home loans comparison table to check out offers from over 80 different lenders.

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Katherine O'Chee
Money writer

Katherine O’Chee is Mozo’s international money transfer and forex expert and business banking writer. She keeps Mozo’s readers on top of the latest news and writes in-depth features to inform and help Australians make smarter financial decisions. Her work has been published in major media outlets including Sydney Morning Herald, SBS News and Bangkok Post. She has a Bachelor of Arts (Media and Communications) from the University of Sydney.