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Suncorp Bank borrowers warned mortgage repayments ‘likely to increase’ under ANZ
Thousands of Suncorp Bank customers have been warned their home loan minimum repayments could increase when their loan is merged with ANZ.
- Suncorp Bank has warned potentially hundreds of thousands of home loan borrowers that their minimum repayments could increase when their accounts are shifted into the ANZ system.
- Suncorp Bank is being merged into the ANZ system, and the brand is being retired, with all customer accounts to be with ANZ by mid-2027.
- A discrepancy with how Suncorp Bank calculates minimum loan repayments means some could see their repayments rise.
Suncorp Bank customers have been warned that minimum repayments on their home loans could increase when ANZ integrates their loans into its system.
The bank, which ANZ bought in 2024, warned customers that a discrepancy in how Suncorp Bank calculates minimum repayments for customers who have made advance payments could raise their bills.
ANZ is currently merging all Suncorp Bank accounts, whether home loans or other products, into its system, with the process expected to be complete by June 2027.
Under Suncorp Bank’s system, advance payments reduce a customer’s loan balance, so the minimum repayment calculation is likely to drop.
Under ANZ’s system, advance payments still reduce the loan balance, but the minimum repayment is not recalculated.
“Your minimum loan repayments are likely to increase when your home loan moves to ANZ, where you’ve made advance payments ahead of schedule on your loan,” Suncorp Bank advised customers.
“This is because ANZ calculates minimum loan repayments for Principal and Interest loans differently to Suncorp Bank.
“If you’ve made advance payments and have funds available in your Cashback/redraw, your minimum loan repayment at ANZ is likely to increase – even if your loan balance stays the same.
“While this may reduce the total interest paid over the life of your loan, it also means your repayments are likely to increase.”
In an example Suncorp Bank provided, the minimum loan repayment rose by more than $280 per month once the account was integrated into ANZ.
However, it argued that under ANZ’s calculations, the same borrower would likely have saved $103,284 in interest and paid off their loan about five years sooner.
The exact number of Suncorp Bank customers affected remains unclear.
Suncorp Bank’s total housing portfolio sits at $57 billion, comprising of $39.8 billion in owner-occupier balances and $17.2 billion in investor loans.
While major banks report the total portfolio size of their home loan books, they never report the number of individual loan holders.
This suggests that hundreds of thousands of customers could be affected, though minimum repayments will only rise for customers who have made advance payments on their loans.
“For most customers, there will be no change to their repayments. Those customers ahead on their repayments may see an increase in their minimum repayments, if they choose to take no action.
“By notifying customers early, we’re giving them time to understand their position, consider their options and take action to keep their repayments the same if they choose to.”
Suncorp Bank offered customers several solutions to keep their monthly repayments similar to what they pay now, including boosting or using their cashback/redraw facility.
Suncorp Bank said it will inform customers of the changes before they occur.
“If you don’t do anything, your loan will still move to ANZ as planned,” the bank said.
“Shortly after your move, ANZ will send you a notice confirming your new ANZ minimum loan repayment amount and the date from which your new minimum loan repayment will commence.
“You’ll still have options once you’ve moved, though some may no longer be available depending on your circumstances”
Topics: ANZ, Home Loans, Mortgage