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A non-major bank has raised its maximum loan amounts by up to $900,000 for mortgage borrowers.
Suncorp Bank has announced that brokers will now be able to offer larger Suncorp loans to their customers across Australia.
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The changes, which came into effect on Tuesday (3 August 2021), apply to loans secured against residential property.
The limits increase in nearly every LVR band across the country.
The largest increase, $900,000, is for those mortgages secured against residential property in metro/inner city areas in NSW, ACT, Queensland, Victoria and Western Australia with a loan-to-value ratio of between 75-80 per cent.
Suncorp Bank’s head of broker partnerships, Troy Fedder, told The Adviser: “This week, Suncorp Bank increased its maximum loan amount, meaning broker partners can now offer Suncorp as an option for higher loan amount transactions to their customers in all states and territories.
“The increase gives customers looking at higher loan amounts more choice, and puts Suncorp on the radar as a lender of choice for a loan that may have previously exceeded our max loan levels.
“This addition is another example of our commitment to broker partners and to delivering better outcomes for customers.”
The new limits
In NSW, ACT, Qld, Vic and WA, the new maximum loan amounts for homes in metro and inner city areas have increased as follows:
|
Maximum LVR |
Maximum Loan Amount |
|
Up to 65% |
$3.75 million (up from $3.25m) |
|
> 65% to ≤ 75% |
$2.75 million (up from $2.25m) |
|
> 75% to ≤ 80% |
$2.5 million (up from $1.6m) |
|
> 80% to ≤ 90% |
$1.5 million term loan and $1 million for existing lines of credit (LOC) (Up from $1.2m and $1m, respectively) |
|
> 90% to ≤ 95% |
$975,000 (no LOC, interest only, external refinance or debt consolidation) (up from $900,000) |
Meanwhile, the new limits for loans in metro and inner city SA, NT and TAS are as follows:
|
Maximum LVR |
Maximum Loan Amount |
|
Up to 65% |
$2.75 million (up from $2.5m) |
|
> 65% to ≤ 75% |
$2.25 million (up from $2m) |
|
> 75% to ≤ 80% |
$1.75 million (up from $1.5m) |
|
> 80% to ≤ 90% |
$1.2 million Term loan and $1 million for existing Lines of Credit (LOC) (no change) |
|
> 90% to ≤ 95% |
$975,000 (no LOC, interest only, external refinance or debt consolidation) (up from $900,000) |
The new maximum loan amounts for properties in all regional areas across Australia are as follows:
|
Maximum LVR |
Maximum Loan Amount |
|
Up to 65% |
$2 million (up from $1.5m) |
|
> 65% to ≤ 75% |
$1.75 million (up from $1.25m) |
|
> 75% to ≤ 80% |
$1.5 million (up from $1m) |
|
> 80% to ≤ 90% |
$975,000 term loans and $750,000 for existing LOC (up from $900,000 and remaining at $750,000, respectively) |
|
> 90% to ≤ 95% |
$650,000 (no LOC, interest only, external refinance or debt consolidation) (Up from $600,000) |
The bank advised brokers that further details of the maximum loan amounts and retail lending guidelines are available on the new Suncorp Broker Portal, which was rolled out last week, and encouraged brokers to reach out to their BDM for more information on maximum loan amounts in their region.
The increase in limits comes as the bank renews its focus on mortgage lending – and follows a material investment program in relation to home lending.
[Related: Suncorp launches new broker portal]
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