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Suncorp Bank Fixed 2 Year Owner Occupied Home Loan (P&I) 1.89% p.a. (2.94% Comparison Rate)

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Suncorp Bank have just announced they are lowering their fixed rate 2 year Home Loan to 1.89% - seems like it could be a good deal, especially if you already have the Home Package. Comparison rate is 2.89%

Discounted 2 Year Fixed Rate in Home Package Plus (HPP). Owner Occupied. New to bank lending in the HPP >= $150,000. Maximum LVR 80%. Principal and Interest repayments.

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  • Is there an annual fee?

    • I think you can either have it as a standalone loan (not sure what the fees are) or get it in the package. The rate for the package is $375 but I think at the moment they are possibly waiving the fees if your lending is over $400,000 or you are a first home buyer. Also they waive the fee in the first year. DYOR though.

      • Just negotiate with them, I'm sure you can get it waived esp with a good LVR.

  • +1

    From what I've been advised they are also offering a refinance cashback of up to $4,000 depending on occupation and loan balances as well as 1st-year package fee waiver.

    • -3

      depending on occupation and loan balances

      Are you able to get some more details on this for us please?

      • It's all in the attached deal.

      • +1

        from the link above "In addition to the fixed rate, eligible customers refinancing their loans to Suncorp can receive cashbacks of $2,000 for loans between $250,000 and $749,999, and $3,000 for refinanced loans greater than $750,000. Teachers and frontline health workers are entitled to an additional $1,000 cashback."

      • +2

        Hope this helps. They have 2 cash backs including 1 with an extra $1k for frontline services workers i.e. nurses, doctors etc.

        Eligibility of both Offers:
        To be eligible, the approved loan/s must satisfy the following

        Regulated Retail Home Lending
        Minimum new home loan amount of $250,000, with the purpose of Refinance from an external financial institution
        Application fully received before the 18th of December 2020
        Settlement on or before the 26th of March 2021
        Standard Variable, Back to Basics Variable and Fixed Rate Home Loans
        Loan to Value Ratio (“LVR”) including Lenders Mortgage Insurance (“LMI”) is less than or equal to 90%

        Available on;

        Personal/Owner-Occupied & Investment lending
        Principal and Interest or Interest Only

        Refinance Cash Bonus Offer (1) – how much is the customer eligible for?

        = $250,000 will receive $2,000, or
        $750,000+ will receive $3,000
        Frontline Extra Cash Bonus Bonus Offer (2) – for eligible occupations
        = $250,000 will receive a total of $3,000 or;
        $750,000+ will receive a total of $4,000

        • +1

          What is the rate for each case? For e.g. Back to Basics Variable (no offset) Interest only refinance?

          • @amsaini15: What if you bring over multiple loans at 250k each? + Frontline worker ?

        • +1

          They have 2 cash backs including 1 with an extra $1k for frontline services workers i.e. nurses, doctors

          Gimmick. Should be offered to more people. Also doctors are rich enough!

  • +3

    Lvr ?

    • Loan to Value ( house value) Ratio

  • +6

    Suncorp customer service is crap. I have posted in detail my experience in a recent deal.

    Just a warning. Any criticism is ignored. Least in my case

    https://www.ozbargain.com.au/node/577338#comment-9541681

    Managed to get a 25k AE credit card and was approved within a day.

    • Did you take your business elsewhere?

      • +2

        Signed discharge yesterday.

    • More detail is required to why you saying its crap, were you not eligible to have a credit card for that amount is that the issue?

      Suncorp is known to not give credit or high loans to those that cant afford to pay it off

      • The point is there was no reason to deny the credit card. We had 15k worth of credit cards for years. We have no debts and pay off our credit cards before the interest free period.

        We are over 100k in front of our home loans have have substantial savings over 20k

        • You might of had bad credit rating with so many credit cards?
          What was the explanation they gave you?

          • @asa79: No. 816 credit rating. Too many expenses apparently. Live a very frugal life but whatever.

            • +3

              @Korban Dallas: That is because they are more picky compared to other banks, so not really bad customer service complaint

              • +1

                @asa79: More like just a Karen complaint.

            • +5

              @Korban Dallas: Can't be as bad at Citibank

              • @blighst: The Suncorp Platinum CC is issued by Citibank. I have no issue with Suncorp customer service for my homeloan, but the credit card cust service is poor in comparison.

            • @Korban Dallas: Too frugal and the banks know they can't make money off you.

        • +1

          Mate, I've got denied the Suncorp CC too, had 50k in savings and perm job. Applied elsewhere, got approved within a day.

          • @d86: Mind telling Where elsewhere Was as I’m in the same boat with expenses etc…

        • how were the home loan services though?

        • +2

          I have seen one of the spreadsheets that mortgage brokers and banks used to determine loan eligibility and borrowing power.

          Whatever amount you have in savings - be it $20k or even $200k, it is NOT taken into account. I am not even sure whether this information is taken into account risks.

          All they take into account is actual income (wages, investments, etc) and estimated expenses.

          What you COULD do though is to use some of the savings to actually pay off the mortgage you have. This is the only way your "savings" will actually help.

          Pisses me off then on why the heck they need to know how much savings we have if it does not even make a difference at all.

          • @kohno83: They just want to know.

            Maybe there is a risk factor associated with the level of saving the applicant has. But when the bank decides credit limit that weight net disposable income and the risk associated with it more.

            Just like the risk associated with a normal person losing 200k of saving in cash in one night in Casino / bad investment is very different from the same person losing his 200k in future net disposable income (got fired or move to a job that earns less, got an accident or get sick, change in family status, etc) in next 24 month so to speak.

          • @kohno83: Because there's LMI ?

            Your borrowing power isn't affected by your savings. More so your spending

            But your LMI is dependent on your 20% deposit..

            Like maybe you can borrow 500k but if you buy a 500k house with 0 savings they'll charge you LMI.

            They'll also wonder if you can't save money now how are you going to save money when you have a mortgage ?

    • +5

      Did it come with a multipass? :)

    • +3

      When i first obtained my home loan(5 years ago) with suncorp their customer service was very good(in my opinion). Next to no wait times on phone services, if it was a complex problem they would call you back and even a couple of times they rang me to let me know about rate drops or ways i can save more money.
      Then slowly over time all of these positives have erroded. Now I'm left with a bank with never ending "peak call volume" and people who struggle to generate a simple bank statement.

      Also their banking app is trash and why the hell do they have another app for a few more functions.

      • +1

        2FA is broken. When you deregister it doesn't and you are blocked out.

        Asks for you to enter the 2FA code. Had to call the bank. Beyond a joke 🤣

    • Interesting, I have had exceptional service since being with them. Joined them in 2012 and they've matched every competitive rate I've put forward to them since then. Only issue I've found is they tend to delay the actioning of rate cuts for longer then needed.

      • Was good for the first two years then went downhill from that point forward.

    • I have always found their service to be exemplary, easily one of the best in the market.

    • TLDR - Suncorp declined CC = crap service (?)

  • +2

    Don't rush. The rest will follow therefore have more options.
    Honeymoon rates always have a nice ending … not :P

  • What is the one year fixed rate?

  • Oh well, been fixed with them for couple of months now. Many brokers said rba wont go lower anymore as it was 0.25% but now

    • +4

      Don’t worry in 4 months time people on this deal will say “I fixed at 1.89% cos brokers said the RBA won’t go to negative” people should fix for peace of mind, not to try and predict the economy.

      • +1

        I did that and fixed at 3.79%.

        Peace of mind is good, but I'd rather a few hundred bucks a month in my account instead.

        • +1

          If it makes you feel better I knew someone who fixed with CBA in 2008 for over 8%, just before the GFC. By the time his term finished the rates were 3% lower. The break costs were always high because the wide interest rate margin always offset the period remaining on the loan.

      • This is a good quick read.

        https://www.abc.net.au/news/2020-11-18/fixed-term-interest-r...

        TLDR;

        Fixed rates in uncertain economic times can be quite damaging, if you have to liquidate your assets.

        Given that RBA has already said these rates are here to stay for at least 3-5 years, i would also suggest looking in to a competitive variable rate. I'm on a variable 2.5% comparison rate and that to me right now is peace of mind, so it really depends on your situation.

  • Is this appliable both for investment and owner?

    • owner only

  • +3

    why are fixed interest rates so much lower than variable? my basic understanding was that this happens when the banks think the variable will go lower than the current fixed but Suncorp's current variable is 2.84% and it seems unlikely, almost impossible, that it will drop to below 1.89% within two years! What am I missing? Is the only risk is that variable rates go lower and I missed out - at such small % and such small margins, the amount would be negligible!

    • +2

      I think it’s so that they can keep the variable rates that most people are on high.. so they can pretend they are passing on the cut by lowering fixed rates but not lowering variable. Also it’s harder to leave a bank when you have a fixed loan

      • Harder = Expensive (read 'break fee')

    • I ask myself the same question… lowest variable I've seen from big 4 is 2.29% with Westpac (which I just got approved for), but fixed rates are hovering 1.99%, albeit all for 4 years. This seems to indicate that banks think they get more value out of customers being fixed at a low rate for a number of years. Maybe it's stability for the banks return?

      • Is your current loan with 100% offset & $395 PA fee? I think it's called rocket? Cheers

        • Nah just the basic loan. I'd like to add rocket to it (and the website doesn't say I can't), but no-one can give me a straight answer when I ask about it

          • @chartparker: Ah ok. Yeah if it was the 100% offset add another 0.5%.
            I'm over negotiating with them with little or no movement (a few months back) so gave them the boot and refinanced with another; same loan structure for 1% less. (2.74% back in April)
            You can only do so much and they don't care so you take your business elsewhere until they jack thier prices up. Perpetual, musical chair banking

            • +2

              @vinni9284: Yeah the lowest ANZ would offer to retain me was 2.78%. Big company loyalty tax.

              • @chartparker: Was this variable with offset? What range did your borrowing fall into?

                I'm with ANZ and something needs to be done, I'm at 3.18% variable with offset.

                • @Kammi: Variable with offset <80%LVR

                  • @chartparker: Insane, im calling today!

                    • @Kammi: Insane good or insane bad? The lowest big bank with variable/offset and cashback that I could find was BoM at 2.64% and $4k cashback, but since my offset savings aren't that great, I'm still better off with Westpac's no frills at 2.29%

                      • @chartparker: I called and they have me 2.79% with lvr <70%

                        My lvr calculation was 45%.. Using the bottom market price estimate from their property profile report 🤷‍♂️

                        They also offer 1yr fixed at 2.19% with the offset.. Which I thought was really good.

                        • @Kammi: Interesting… they called me up to try and retain after i sent in the discharge papers. The best they offered was 2.59% (available with offset) with 150,000 QFF points

                          • @chartparker: Yeah def interesting, was just looking around Westpacs website and saw the 2.19% <70%lvr, then went to anz and generated a property report, this must've triggered the outbound call.

                            Doesn't seem to be any downside with 1yr fixed at 2.19% with the offset!

          • @chartparker: You can't add rocket to it. It's no frills loan. No offset either.

        • It's flexi not rocket.

      • +10

        The lower fixed rates are mostly to do with term funding arrangements coming from the RBA, which gives certain bank lenders access to lower funding for fixed-rate home loans.

        • thanks for the info :)

        • @obtainfin do you know the intro fees for the suncorp? Eg valuation fews application fees etc

          • @Cheapass1995: Interested in knowing the fees for this as well. Monthly, package, valuation, discharge etc

            • @thefud: Seems to be waived if you do a home package plus they dont have an application fee the only thing that im curious about is the (application rate lock fee of $600 or .15% whichever is greater) also it seems early termination is $350

        • Then how do Athena or UBank drop their variable? Doubt they’d wear the cost?

    • Because your locked in for 2 years

    • With most Fixed you can't pay extra, or have a set amount of over payment (eg $20,000 over the fixed period). That means you can't add an extra $500k (if you win the lottery?) and suddenly drop your payments by $10,000 a year and give them less money.

    • Because, in general, fix rate loans cost them less. When they give you a long term fixed rate loan, they can go hedge that more comfortably for a long term. This gives them more certainty on their balance sheet (they know almost exactly how much profit they're going to make from your loan). Plus other benefits for them, i.e. no offset etc

    • RBA giving bank loans for 3 years at 0.1% that is why.

  • +2

    I fixed at 2.24% 3 months ago. Now it's at 1.89%.

    Meh, the difference is only $80/month

    • +10

      Only?!?!!?!!??!! Dayuumm, son!

    • +1

      Close to a grand a year?

    • +2

      Let me make you feel better. I locked my rate 2 years ago for 3 years at 3.79% and now I am paying about $300 per month extra on $350k loan. I am sure someone would have locked at even higher rate. That's the characteristic of a fixed loan :)

      • Yeah but at the time you were giving yourself a set amount to budget to (which is really the only reason you should fix). I got somewhat lucky in that I only paid about 6 months of over-inflated rates this year. But the difference between what I was paying before and what I will be paying now is about $757(!!!!!) per month! That's $9k a year without considering any cashback offers… and some people don't ever bother even looking at their rates every few years. Absolutely nuts

        • True 😞

      • I was with another bank and fixed it at 3.75% as well. However I broke the deal and took a penalty hit (about $6k) to refinance with another bank.

        The combination of Cash bonus from another bank, plus lower variable interest rates (2.7% vs 3.75%), plus an offset account help deal with the $6k pain. In fact, I came out miles ahead, so taking the penalty hit was worth it.

        • I am doing the exact same thing. Break cost is around 4k. Refinancing with St George to cover that. Plus broker rebate and rate difference will make me a bit ahead.

          • @ashftc: Does the $4k cover costs from both banks? If so, that probably makes it a bit easier to swallow

      • I started my mortgage back in 2019 with a fixed rate of 3.88% on 2 years term. Never expected a pandemic would happen the next year and everything went bonkers :s

        I wish I discovered OZB sooner. So many useful tips and info on here
        Right now, waiting for the first term to finish and see if I can negotiate for lower rates

    • How much does it cost to get out of a fixed loan? Is there a formula?

      • +1

        Only the bank can tell you this. Basically they will penalise you to the absolutely maximum for 'lost' interest they would have charged you for the full remainder of the fixed term.

  • What is Back to Basics Variable (no offset) Interest only loan (refinance) with Suncorp? Does it include $3K cashback $750K+ loan?

  • What rates they doing for VAR on OO and Invest ?

  • Does teachers also include education assistants?

    • It does include teachers assistants after reading the terms and conditions

  • Are you eligible for cashback if you already have variable a suncorp loan?

    • No i dont think so. I asked about a month ago and the answer was, "Not unless you borrow up to the next threshhold." (>$750,000)

  • Apologies for the poor copy and paste job, bonus cashback occupation list is below.

    Eligible Occupations for the Cash Bonus Offers
    Occupations displaying with codes are defined by ASCO^
    HEALTH PROFESSIONALS (23)
    231 Medical Practitioners
    Note: Doctors, general medical practitioners, a physician, paediatrician or surgeon
    232 Nursing Professionals
    238 Miscellaneous Health Professionals
    EDUCATION PROFESSIONALS (24)
    241 School Teachers
    242 University and Vocational Education Teachers
    249 Miscellaneous Education Professionals
    School Principals (M) Special Education Teachers (P)
    Early Childhood (Pre-primary School) Teachers (P) Education Aides
    HEALTH AND WELFARE ASSOCIATE PROFESSIONALS (34)
    341 Enrolled Nurses
    342 Welfare Associate Professionals
    349 Miscellaneous Health and Welfare Associate Professionals
    Aged and Disabled Carers (CP) Enrolled and Mothercraft Nurses (CP)
    Ambulance Officers and Paramedics (CP) Health and Welfare Services Managers (M)
    Anaesthetists (P) Medical Imaging Professionals (P)
    Child Care Centre Managers (M) Medical Technicians (TT)
    Child Carers (CP) Midwives (P)
    Chiropractors and Osteopaths (P) Nurse Educators and Researchers (P)
    Counsellors (P) Nurse Managers (P)
    Dental Assistants (CP) Nursing Support and Personal Care Workers (CP)
    Dental Hygienists, Technicians and Therapists (CP) Occupational Therapists (P)
    Dental Practitioners (P) Orthodontists
    Optometrists and Orthoptists (P) Registered Nurses (P)
    Pharmacists (P) Social Professionals (P)
    Physiotherapists (P) Social Workers (P)
    Podiatrists (P) Specialist Physicians (P)
    Practice Managers (CA) Speech Pathologists and Audiologists (P)
    Psychiatrists (P) Psychologists (P)
    OTHER ASSOCIATE PROFESSIONALS (39)
    391 Police Officers
    399 Miscellaneous Associate Professionals
    Royal Australian Air Force & reserves Royal Australian Navy & reserves
    Fire & Emergency Workers (CP) - Rural & Voluntary Australian Defence Force & reserves
    State Emergency Service (SES)
    Administrative and Support services to all these occupations will also be accepted
    ^ Australian Standard Classification of Occupations

    • So on a joint loan which includes a teacher and a nurse, is that $2000 (2 x $1000) extra bonus cashback? 😏

      • +2

        From what I've read there's a 'Limit of one payment per borrower regardless of the number applications which may be eligible. If there is more than one individual borrower, only one payment will be made to them jointly'. This is on top of their maximum $3,000 rebate for other borrowers.

  • +5

    What a time to be alive in debt!

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