Our home loan is with what people tell me is a 2nd tier bank, Suncorp. At a BBQ yesterday people were discussing interest rates and the suggestion was 2nd tier banks have been and are more likely to be increasing their rates more than the majors. Is this correct, I haven’t seen a change in our rate yet?

Hi Chrissy,

Not entirely true. Some of them do fluctuate but I’d say the majors do just as much. Happy to have a chat if your looking at other options out there or simply answer any other questions you have :).

Zaid - 0401586901
SB FINANCE

Hi Chrissy

Ahh the good old BBQ experts! The old wives tale that the big 4 are more secure than 2nd tier lenders is not true. Cost of funding drives the decision by a lender to increase or decrease rates. Even the big 4 will (and have) increased rates recently.

If you are concerned about rising rates than you can consider fixing all or part of your loan. All lenders will eventually raise rates; it is just a matter of when.

Regards
Sam