Suncorp Bank warns some mortgage borrowers of higher minimum payments after ANZ move
Customers with advance payments or money available in redraw may need to adjust their repayments before their home loans move to ANZ.
Suncorp Bank warned Australian mortgage customers in an October 13 email that some minimum repayments could rise when their loans move to ANZ, ABC News reported. The warning applies to borrowers who have paid ahead and have money available in Cashback or redraw; for them, the transfer could change the amount they must pay each month.
The email said a customer with advance payments and funds available in Cashback or redraw is likely to see a higher minimum repayment at ANZ. It said the size of any increase would depend on the loan balance, how much had been paid in advance and the remaining loan term, according to ABC News.
Why advance payments could change the minimum
Suncorp has allowed some customers with redraw and cashback facilities to use advance payments to reduce their required monthly repayment. ANZ calculates the minimum differently, ABC News reported. That means a borrower could be asked to make a larger regular payment after the move even though they have already put extra money into the loan.
Canstar data insights director Sally Tindall gave ABC News an example of how the calculations differ. For a loan with $600,000 in debt, $100,000 in extra payments and 25 years remaining, she put the monthly minimum at $4,047 when calculated on $600,000, using a 6.49% variable rate. A calculation based on the $500,000 balance after those extra payments produced a minimum of $3,373. The example illustrates the calculation difference; individual payments depend on each loan’s terms.
Suncorp Bank chief executive Malcolm Stedman told ABC News that most customers would see no change. Borrowers who are ahead on payments may face a higher minimum if they take no action, he said. Tindall agreed that customers who follow the instructions in Suncorp’s email could avoid an increase. The reported account of the email did not set out the precise steps for every affected loan.
When Suncorp loans move to ANZ
ANZ says Suncorp home and business loans will become ANZ loans in the first half of 2027. The changes for each customer will depend on the type of loan and the features they use, according to ANZ’s customer information page. ANZ says it will tell customers about changes and any action they may need to take before the move.
The transfer follows ANZ’s purchase of Suncorp in 2024. ABC News reported that more than a million Suncorp customers are due to move to ANZ by 2027, but the repayment warning concerns a narrower group: borrowers with advance payments or available redraw funds. The number who could face a higher minimum has not been established.
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Sources and context
- Suncorp borrower's mortgage payments could spike amid transfer to ANZABC News
- Suncorp Bank is moving to ANZANZ
AI-assisted article checked against the listed sources. NewsJaws did not conduct interviews or attend the reported events.