Thousands of Suncorp mortgage customers could see their minimum monthly repayments rise sharply when their loans are transferred to ANZ next year, adding another source of pressure for Australian households already dealing with higher interest rates.
Suncorp customers were warned last week that borrowers who have built up advance repayments or redraw balances could see their minimum repayments increase once their loans move onto ANZ’s systems.
In some cases, the increase could exceed A$1,000 a month depending on the loan balance, remaining term and amount already paid ahead.
ANZ acquired Suncorp Bank in 2024 and is now preparing to migrate more than one million customers onto its own platforms.
Different repayment rules create problem
The issue stems from differences between how Suncorp and ANZ calculate minimum repayments.
Suncorp has allowed some customers who are ahead on their loans to benefit from lower minimum monthly repayments.
ANZ does not apply the same approach, meaning borrowers may need to restructure how advance payments are treated before the transfer.
Suncorp says most customers will not experience a change and affected borrowers can take steps to avoid higher minimum repayments.
Consumer advocates argue the situation highlights how little power mortgage borrowers can have when loan conditions change following a major banking acquisition.
The transfer comes at a difficult time for households after the Reserve Bank lifted the cash rate to 4.60%.
For borrowers already managing higher mortgage costs, even a technical change in repayment calculations could have a substantial effect on monthly household budgets.
