Suncorp Bank exec says investors can get ahead of rising rates
During the past two years of the COVID-19 pandemic, the real estate market leaned heavily toward owner-occupiers and first-home buyers while investors pulled back. But now investors have returned to the market in a big way, with the latest lending indicators from the Australian Bureau of Statistics showing that new loan commitments to investors hit a record high of $11.7 billion in March.
Troy Fedder, head of broker partnerships at Suncorp Bank, recently spoke with MPA about how brokers can help investors get ahead of further interest rate hikes by refinancing their property portfolios.
Fedder said that Suncorp Bank’s investment loan portfolio has grown by nearly 5% over the past 12 months.
“We’ve created new opportunities to fund these loans by delivering a simplified credit policy and reducing the volume of documentation that customers and brokers need to provide,” Fedder said. “We’ve also been dedicated to providing consistent service and turnaround times, which we know are key in the current property investment market.”
With interest rates rising, property investors should consider refinancing their loan portfolios, Fedder said.
“Rate increases are always a prompt to customers to review their circumstances and lending arrangements, and I think it’s likely we’ll see property investors looking to refinance over the coming period,” he said. “We see this as a positive given our strong offerings, such as our Life of Loan package fee waivers, cashback incentives, and rewards for customers who have, or plan to have, solar panels installed on their investment property.”
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Suncorp Bank was recently recognised for offering outstanding value for investors, Fedder said.
Fedder said that brokers were doing a good job of proactively reaching out to customers about refinance opportunities.
“At Suncorp Bank, we hope to earn the right to be their lender of choice given our competitive rates, improved policies and consistent turnaround times,” he said.
