'While we have been absorbing this increase, the changes announced today are necessary to ensure our ongoing ability to support lending growth for home loan, small business and agribusiness customers,' he said. Mr Carter said while deposit holders had benefited from the higher rates, the bank could no longer absorb the cost in its mortgage loan book. 'In March we acknowledged the increase in the Bank Bill Swap Rate, which has continued to rise,' he said. Suncorp banking and wealth chief David Carter said the decision to increase rates was based on the sustained increase in funding costs. Suncorp's small business loans will rise by 0.1 percentage points.Īdelaide Bank, a subsidiary of the Bendigo and Adelaide Bank, will raise rates on its owner-occupier and investor loans by between 0.12 and 0.4 percentage points. Suncorp will increase all variable home loan rates by 0.17 percentage points from September 14.
The moves follow Westpac's decision to raise its variable rates by 0.14 percentage points earlier this week, with speculation the other big lenders will move soon too. Suncorp and Adelaide Bank have followed Westpac's lead on out-of-cycle rate rises for home loans, citing funding pressures for the moves.įor Suncorp, Australia's sixth biggest home lender, it is the second rise in six months.
