Suncorp Bank has announced it will hike interest rates on all variable-rate home loans starting on March 28.
Variable owner-occupier principal-and-interest rates will rise by 0.05% per annum, variable investor principal-and-interest rates will rise by 0.08% per annum, and variable interest-only rates will rise by 0.12% per annum.
David Carter, chief executive officer of banking and wealth at Suncorp, said the decision to increase rates was based on the rising costs of funding, as well as meeting the costs associated with regulatory changes. The outlook for US interest rates factored in the decision as well.
“As a result, we have seen the key base cost of funding, being the three-month Bank Bill Swap Rate (BBSW), rise approximately 0.20%. This increase results in higher interest costs to our wholesale funding, as well as our retail funding portfolio, such as term deposits,” Carter said in a statement.
According to Brisbane-based Suncorp, the majority of its customers will continue to pay rates well below the headline, due to the products’ various features and benefits.
“It remains our priority to offer a range of competitive products and services to all of our customers. The higher interest costs will benefit our deposit customers, with Suncorp offering attractive rates across term deposit and at call portfolios, including our new Growth Saver product that rewards regular savers with a 2.60% bonus interest rate,” Carter said.