Suncorp has announced an increase of 0.15% p.a. for its variable interest rates on new and existing owner-occupier loans from 23 January.
The changes apply to the bank’s Back to Basics and Standard Variable products, bringing the rates up to 4.97% p.a. and 5.55% p.a. respectively.
Suncorp has also increased its small business rates by 0.15% p.a. with the Business Essentials rate moving to 5.14% p.a.
The decision to increase rates was a result of balancing the needs of stakeholders, Suncorp banking & wealth CEO David Carter said.
“Increasing competition for quality funding sources, the cost of meeting regulatory change and events overseas that have altered the outlook for interest rates globally, have led to rising funding costs.”
He stressed that the majority of bank funding was dependent on these factors instead of the Reserve Bank of Australia cash rate. Rising costs have been driven by changes in regulation to bring in a stronger banking system, he added.
“While we have been absorbing these increasing costs, it’s evident that the trend is not likely to change. These factors are also impacting the broader industry, with many of our competitors implementing similar rate changes.
“We will also reverse recent reductions to interest rates on our 55 Plus Accounts, resulting in a 0.15% p.a. increase to our middle and top rate tiers. These accounts are typically used by pensioners and self-funded retirees.”
