Suncorp

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GUEST OBSERVATION
Suncorp Bank is now offering fixed home loans with some of the lowest advertised interest rates on the market.
The Brisbane-based bank’s packaged home loans for both owner-occupiers and investors have three-year fixed rates that rival most variable-rate products.
From today, the Home Package Plus Special Offer home loans offer interest rates of:
<ul type="disc">
<li>3.49% p.a. (4.24% comparison rate) for owner occupier, principal and interest borrowers</li>
<li>3.69% (4.50% comparison rate) for investment, principal and interest or interest-only borrowers</li>
</ul>
Both of these new interest rates are available for loan-to-value ratios (LVR) of up to 90% – that’s a minimum deposit of 10%.
In addition, owner occupier and investment customers can get rates as low as 3.44% and 3.64% respectively if they use Suncorp’s fast refinance (owner-occupied refinancers can also get $1,500 cashback with Suncorp).
It should be noted these are packaged home loan products, meaning borrowers would need to combine the loan with a Suncorp bank account to be eligible for the rate.
This means they come with a higher comparison rate compared to other non-packaged products, which reflects higher fees.
Suncorp’s packaged products come with a $375 package fee, but the comparison rate on the special offer products are still much lower than its non-packaged products.
Suncorp’s standard fixed owner-occupier loan, for example, has an advertised rate of 3.94% and a comparison rate of 5.43%.
On its website, Suncorp promises to waive this $375 fee in the first year.
How do these new rates compare?
These new interest rates are among the lowest on the market at the time of writing, and are a testament to the sheer number of rate drops there have been lately, particularly when it comes to fixed rates.
Big four banks Westpac and the Commonwealth Bank also began offering lower fixed home loan interest rates this week, but their new rates pale in comparison to Suncorp’s latest rates.
Commbank’s new three-year fixed package home loan for owner-occupiers offers a rate of 3.79% (4.98% comparison rate) while Westpac is offering 3.89% (4.92% comparison rate) on its three-year fixed package.
These rate cuts follow a similar move in late March, where Suncorp cut some of its other fixed-rate home loans by as much as 70 basis points.
This article was originally published on <a id="LPlnk675834" href="https://www.savings.com.au/home-loans/suncorps-new-fixed-home-loan-rates-among-the-lowest-on-the-market/" target="_blank" rel="noopener noreferrer" data-auth="NotApplicable">Savings.com.au</a>.
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j.ballantyne1990-6AQqhLzZaK

Suncorp’s new fixed home loan rates among the lowest on the market

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Suncorp has unexpectedly declared a residential mortgage bond worth $120 million may not repay all investors.
It came after the share of borrowers in arrears rose to a trigger point, putting the distributions in doubt.
It has been reported it ranks as the first local mortgage bond to encounter difficulty since the global financial crisis, although this is disputed.
The original mortgage pool was heavy orientated to Queensland properties.
There are now around 1000 of the original 4800 loans still owing at an average $118,000.
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“It certainly is a canary," CLSA banking analyst Brian Johnson said, although others suggest not so.
“To get to this point, for a securitisation this old to go bust — that is weird,” Mr Johnson said.
“We think it is an isolated case,” Commonwealth Bank says in a credit strategy note Tuesday. “We are cautious of the development but not alarmed.”
The tranche of mortgages in the <a href="https://www.suncorp.com.au/content/dam/suncorp/corporate/documents/investors/investor-reports/2019/a17-2010-1-investor-report-feb-19.pdf" target="_blank">Apollo series trust</a> sold in 2010 reached a rate of 3 per cent of borrowers more than 60 days overdue on their mortgage, the Queensland-based bank yesterday said.
Suncorp said the announcement did not affect other tranches of loans in the Apollo trust.
The 3 per cent arrears figure on the group of borrowers is three times the rate of arrears in Suncorp’s broader mortgage portfolio of about 1 per cent.
The series trust which has shrunk from its original volume of $1 billion since it was first sold to investors.
Suncorp said all investors were expected to continue to receive monthly payments on the instalments on interest, but the principal amount on their investment would be diverted from subordinated debt holders to the highest class of shareholders, AAA note holders.
The distributions will be then staggered according to the class of shareholders until all funds are exhausted.
Suncorp also expected the Apollo trust tranche to shrink further over the coming year to meet the 10 per cent threshold which allows the bank to close the trust.
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The bank said at this point, subject to regulatory approval, it was expected that all holders were expected to receive the full principal amount once the trust was called.
“In the case of the APOLLO Series 2010-1, this is a very small number of customers going into arrears. As for the broader Suncorp retail portfolio, the total arrears is low at around 1 per cent,” a Suncorp spokesman said.
The mortgage bond was referred to in <a href="https://www.rba.gov.au/information/foi/disclosure-log/pdf/121305-65-74.pdf" target="_blank">a 2012 RBA analysis of LVRs</a>.
There is no indication of the location of the properties in default, with speculation the bond has disproportionate amounts of mining-boom towns.
There was a strong Brisbane presence in the original loans.
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The purchase price for the mortgage loans was $999,949,816.
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They were required, generally, to be secured by a registered first ranking mortgage over Australian residential property (in limited circumstances a property can be secured by a second ranking mortgage). 
It has been suggested the incident is not unprecedented, as other securitisation transactions have failed step down provisions in recent years due to delinquency rates and unreimbursed charge-offs that were subsequently repaid or cured and the transactions in question have reverted to pro-rata pay.
These step-down provisions are in place to protect senior note-holders and on each occasion the mechanisms have worked as planned.
For the Apollo 2010-1, there are no charge-offs to outstanding notes, all principal balances of notes are still 100% (i.e. Invested Amount equals Stated Amount per 3rd Feb reporting).
The transaction features 100% mortgage insurance coverage (LMI) from QBE LMI, which provides an additional layer of coverage for the noteholders in the event of mortgage default; to date there have been zero reported losses on sale with no LMI claims.
The current transactions size is $120 million down from an original $1bn, a pool factor of 12 percent.
The transaction features a 10 percent clean up call.
Suncorp have exercised these 10 percent clean up-calls on previously outstanding transactions. 
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jchancellor-FAypfDUnLy

Suncorp arrears shock in 2010 residential mortgage bond

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Suncorp have announced that 80 Ann Street has been selected as the site for the company’s new single location in Brisbane from 2022. 
The move will consolidate Suncorp’s Brisbane workforce into a single, modern and collaborative workplace.
The decision follows similar office consolidation projects in Sydney, Auckland and Melbourne.
The Sydney project delivered close to a 30% saving in cost and space efficiency. 
Suncorp CEO Michael Cameron said the new workplace will reflect Suncorp’s Queensland heritage. 
“I would also like to acknowledge the efforts of the other developers who have participated in this process,” Mr Cameron said. 
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/7/16/image009.jpg" alt=""> 
Mirvac’s CEO Susan Lloyd-Hurwitz, commented that 80 Ann Street was purpose-built for Suncorp and aligns to Brisbane City Council’s ‘Buildings that Breathe’ principles for sub-tropical architecture, while re-invigorating an historic part of the city.
"We look forward to working with the Suncorp design team to create a workplace that supports the needs of their company and the community.” 
Suncorp will occupy the new $800 million tower by September 2022, subject to Mirvac finalising the land acquisition.
Designed by Woods Bagot, the premium 32-storey development at 80 Ann Street will provide Suncorp with close to 40,000 m2 of office space. 
Director and global workplace architecture leader, Mark Damant, describes the project as more like a new city precinct than a singular building, made up of many diverse places.
Spanning an entire block between Ann and Turbot streets, the development will help connect the CBD to the Roma Street precinct, the two courts buildings and surrounding plazas and squares to make a distinctive precinct of its own with an unprecedented civic and retail offering, Damant said.
The design returns the last remaining piece of Brisbane’s oldest surviving fruit and produce market on Turbot Street back into the city fabric, and – with its overwhelmingly public and porous ground floors – will act as a catalyst to the upcoming Brisbane Live precinct and the development of the north west quarter of the CBD around the Roma Street Station.
Damant describes the very flexible, large floorplates, with wide structural spans, minimal internal columns and amazing access to daylight and views as “dream floorplates”.
Providing a large continuous space on each level, the floorplates are linked with stairs and atria that create larger interconnected communities all the way up the Suncorp tenancy.
 <img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2018/7/16/image011.jpg" alt="">
“This is also a mixed mode building in the true sense with arrival spaces connected to the outside via louvered and openable facades. With terraces and balconies available to each community within the tower Suncorp’s people will be able to step outside at every third level, without having to go all the way down to the ground. 
“There will be an abundance of natural daylight and fresh air for optimum workplace wellbeing and connectedness … Brisbane has the perfect climate to bring inside,” Mr Damant said.
Suncorp staff are now spread through three sites across Brisbane’s CBD. 
Echoing another landmark workplace project by Woods Bagot – 1 William Street which brought together nearly 5000 Queensland public servants from 16 sites to a single location – the floor plate and spatial planning are intended to support greater collaboration and interdepartmental interaction, and happier people, in an efficient and highly productive workplace environment. 
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“Dream floorplates” envisaged for Suncorp in Brisbane’s newest city precinct

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Mirvac has announced it has secured banking and insurance group Suncorp as the anchor tenant within its new $800 million development which will form a "new city precinct" in the heart of Brisbane.

Suncorp will occupy 40,000 sqm of Premium Grade office space within the 32-storey tower designed by Woods Bagot.

Located at <a href="https://maps.google.com/?q=80+Ann+Street&amp;entry=gmail&amp;source=g">80 Ann Street</a>, the development has been likened to a new city precinct comprising many diverse places, rather than a singular building, says the architect.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/p3lvi8n.jpg" rel="gallery-all" title='The $800m development has been described as a "new city precinct". Image: Woods Bagot'><img alt="" class="image-article-full-width-580px" height="326" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/p3lvi8n.jpg?itok=6EaCiA8K" title='The $800m development has been described as a "new city precinct". Image: Woods Bagot' width="580"></a>

<figcaption>The $800m development has been described as a "new city precinct". Image: Woods Bagot</figcaption></figure>The design aims to repair the city fabric by returning the last remaining piece of Brisbane’s oldest surviving fruit and produce market on Turbot Street while also providing a porous public realm at the ground floor.

Additionally, the development will act as a catalyst to the upcoming Brisbane Live precinct and the development of the north west quarter of the CBD around the Roma Street Station.

Internally, the workplace design for Suncorp will enable people to work together as one holistic community which champions the City of Brisbane’s vision for ‘<a data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.brisbane.qld.gov.au/planning-building/planning-guidelines-tools/neighbourhood-planning-urban-renewal/neighbourhood-plans-other-local-planning-projects/city-centre-neighbourhood-plan/new-world-city-design-guide-buildings-breathe&amp;source=gmail&amp;ust=1531788783392000&amp;usg=AFQjCNHPtDGhSvcIkObD8BXabLrp-Dj-lg" href="https://www.brisbane.qld.gov.au/planning-building/planning-guidelines-tools/neighbourhood-planning-urban-renewal/neighbourhood-plans-other-local-planning-projects/city-centre-neighbourhood-plan/new-world-city-design-guide-buildings-breathe" target="_blank">Buildings that Breathe</a>’.

Architects Woods Bagot describe the very flexible large floorplates which carry wide structural spans and minimal internal columns, and with excellent access to daylight and views as “dream floorplates”. Providing a large continuous space on each level, the floorplates are linked with intertenancy stairs and atria that create larger interconnected communities all the way up the Suncorp's lease.

<blockquote>
This is unlike anything else in the city. Spanning an entire block between Ann and Turbot streets, the development will help connect the CBD to the Roma Street precinct, the two courts buildings and surrounding plazaz and squares to make a distinctive precinct of its own with an unprecedented civic and retail offering.

This is also a mixed mode building in the true sense with arrival spaces connected to the outside via louvered and openable facades. With terraces and balconies available to each community within the tower Suncorp’s people will be able to step outside at every third level, without having to go all the way down to the ground.

There will be an abundance of natural daylight and fresh air for optimum workplace wellbeing and connectedness … Brisbane has the perfect climate to bring inside.

- Mark Damant, Director and global workplace architecture leader at Woods Bagot
</blockquote>

The development also echoes Woods Bagot's <a data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.woodsbagot.com/projects/1-william-street&amp;source=gmail&amp;ust=1531788783393000&amp;usg=AFQjCNF_ipFxsm_1P9fXufD2PpvcJDLpTA" href="https://www.woodsbagot.com/projects/1-william-street" target="_blank">1 William Street</a> project, which brought together nearly 5,000 Queensland public servants from 16 sites to a single location. Suncorp staff are currently dispersed across three sites throughout Brisbane’s CBD, with the floor plate and spatial planning of its tenancy intended to support greater collaboration and happier staff in an efficient and highly productive workplace environment.

80 Ann Street aims to raise the benchmark of premium office accommodation in Brisbane, incorporating the latest thinking and technology to provide a vertically integrated working environment.

Key to this is the adoption of a sustainable approach to the design which embraces the sub-tropical climate of Brisbane, providing breathable spaces and a flexible working environment which promotes the health and well-being of the building community and the success of their businesses.

<figure><a class="colorbox colorbox-insert-image" href="https://res.cloudinary.com/dz9xllyip/image/fetch/q_auto:good/https://s3-ap-southeast-2.amazonaws.com/www.urban.com.au/s3fs-public//pictures/article-images/laiku0t.jpg" rel="gallery-all" title="The design incorporates breathing floors to improve the working environment. Image: Woods Bagot"><img alt="" class="image-article-full-width-580px" height="298" src="/sites/urban.melbourne/files//styles/article_full_width_580px/public/pictures/article-images/laiku0t.jpg?itok=FvSaWFXd" title="The design incorporates breathing floors to improve the working environment. Image: Woods Bagot" width="580"></a>

<figcaption>The design incorporates breathing floors to improve the working environment. Image: Woods Bagot</figcaption></figure>Breathing floors which have been designed as mixed mode ‘garden terraces’ that connect employees with the outside world and provide fresh air, are located at levels 23 and 32. 

Timber pods housing meeting rooms, collaboration spaces and other client engagement spaces float on these floors as informal meeting or working spaces.

The roof level hosts function spaces and a kitchen facility with the remaining area comprising a shaded roof terrace with outdoor settings, herb gardens and plans for small fruit trees. A high level roof soffit will act as a projection backdrop for cultural displays and potentially light shows providing the Brisbane skyline with a new focal point.

<h2>Project details</h2>

<ul>
<li>Project: <a href="https://maps.google.com/?q=80+Ann+Street&amp;entry=gmail&amp;source=g">80 Ann Street</a>
</li>
	<li>Location: Brisbane, Australia</li>
	<li>Client: Mirvac and Suncorp</li>
	<li>Status: Development approved, in design development. Completion due 2022.</li>
	<li>Value: AUD 800 million</li>
	<li>GFA/ Area: 84,263 m2
</li>
	<li>Height: 32 storeys</li>
</ul>
<h2>Woods Bagot Global team</h2>

<ul>
<li>Brisbane - Mark Damant, HangChung Ling, Christopher Lewis, Mark Nilon, Su Chen, Graham Whawell</li>
	<li>London - Nik Karalis</li>
	<li>San Francisco - Christina Kyrillou, George Waters, Eli Linger, Maulana Murdan, David Barry</li>
	<li>Sydney - Amanda Stanaway, Bradhly Le, Olivier Solente</li>
</ul>
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Laurence Dragomir

Mirvac lands Suncorp for Brisbane's $800m Ann Street development

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Suncorp has announced new pricing methodology for interest only home lending.
It banking &amp; wealth CEO David Carter said the bank currently calculated interest only rates based on the purpose of the loan, but would now also take into account the type of loan repayment, i.e. owner occupier or investor.
Variable interest rates on existing owner-occupier interest only rates will increase by 0.10% p.a and variable interest rates on all investor interest only rates will increase 0.38% p.a., effective 1 November, 2017.
Variable interest rates on existing principal and interest owner-occupier and investor rates remain unchanged.
“Currently, our interest only home lending is priced at the same rate as principal and interest home lending, however following recent changes in the market we have made changes to our systems to differentiate between borrowers repaying interest only, and those repaying principal and interest,” David Carter told Australian Broker.
“With the market having effectively repriced interest only lending, and with some lenders having opted out of certain aspects of the market, it’s important for us to also support the focus on this type of lending.   
  “We are writing to customers this week to advise them of this change and the new interest only rates, which will come into effect on 1 November, 2017."
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Suncorp lifts interest only rates by 0.38 percent

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Non-major lender Suncorp has unveiled a number of discounts on its investor and owner occupier loan products in response to being awarded Bank of the Year – Fixed Rate Home Loan by CANSTAR.
Effective from today (12 September), the bank's Investment Home Package Plus two and three year fixed rates will drop by 0.20% p.a. and 0.30% p.a. respectively, bringing both rates to 4.29% p.a.
In addition to the fixed rate award, Suncorp also received a five star rating for two of its home loan products:
<ul>
<li>Bank to Basics Owner Occupied Construction Loan</li>
<li>Home Package Plus Owner Occupied Fixed Rate Loan</li>
</ul>
“The CANSTAR award and five star ratings are further confirmation that we are offering products that deliver value for our customers,” said Suncorp banking &amp; wealth CEO David Carter.
“In June this year, we announced some changes to interest rates to give additional support to customers in the owner-occupied market, and from today I am pleased to say we will go further.
“This is a reflection of recent reductions to fixed rate funding costs, allowing us to lower our two most popular fixed rate loan products for investors.”
The rate changes and special offers come into effect in what is traditionally a busy season for home buyers, he added.
“Customers who take advantage of these offers will also have the convenience of being able to access more than 3,300 fee-free ATM’s, as part of Suncorp’s new partnership with the rediATM network.”
Gateway Credit Union has earned 5-star ratings from CANSTAR for some home loan products.
Gateway’s Premium Package Home Loan for both owner-occupier and investment as well as the Premium Package 5-Year Fixed Rate Home Loan for both owner-occupier and investment have earned the rating
Paul Thomas, Gateway CEO, said the 5-star rating proved the leading credit union was a strong contender in the market.
“This is another great achievement for Gateway, especially in light of the competitive landscape in which the home loan market currently operates in," he said.
"This endorsement from CANSTAR is another feather we can stick in our cap when it comes to our ability to provide home loan products that offer value, flexibility and innovation,” said Mr Thomas.
Gateway won Mozo’s Australia’s Best Credit Union 2017 for the second consecutive year.
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