Warning about Suncorp

[neK]

Have come across something with Suncorp that doesn't exist with St George (and possibly other banks).
This policy alone will stop me from taking out any further debt with Suncorp.

As property investors, its important we keep separate loan accounts for tax purposes. Separate loan accounts also allow for greater flexibility if you need to do fix/variable combinations etc.

With Suncorp (and like most other lenders), this isn't an issue. You can have 1 loan, then split it into part variable / part fixed or top up and get a new loan account number - no additional charge if you on a package.

However where Suncorp sting you (and banks like St George don't) is that to consolidate the loan / refinance the loan, there is a $350 "Loan Finalisation Fee". This means if even if you maintain your loans with Suncorp but consolidate a two loans together, you are stung with a fee of $350 (regardless whether you are on a package fee or not). St George on the other hand only applies the fee when the Final loan is finalised.

Another example, say I've got a primary investment loan, plus 2x equity loans. If i were to leave, St George would only charge me ONE lot of $350. Suncorp on the other hand would charge it THREE times.

So what has prompted me to consider leaving Suncorp.... their stupidity in which they handle loan valuations.
I've been attempting to get a valuation so I can BORROW MORE money with Suncorp.

• They assign the job to Valuer A
• valuer A goes out the see the property (there are two dwellings on the one site)
• Valuer Athey manage to see one of the dwellings, but they just miss out on seeing the 2nd dwellings as the tenant had to go to work and the valuer was a bit late.
• Valuer A re-books in the job with the tenant and is scheduled to go out to inspect.
• Vauler A calls me to tell me they can't finish off the valuation because Suncorp in their wisdom decide to cancel the valuation and reassign it to a different company - Valuer B.
• Valuer B calls me to advise they need to access both properties, meaning Tenant1 needs to be disturbed AGAIN.

I explain the issue to the broker, they then relay it to suncorp and ask Suncorp to re-assign the valuation back to Valuer A so they can finish the job without disrupting the Tenant1 (seems pretty logical to me). Suncorp says thats not possible and it now needs to go to ValuerB.

For me, i don't like disturbing my tenants, they have the right to enjoy their peace. I need to work with a lender who understands what I am trying to achieve and assists me in doing so, not put barriers up and force me to annoy my client due to their ineffiecient processes.


Short Version:

• Suncorp don't apply common sense. They want to make you annoy your clients for valuations to meet their processes
• Suncorp charges $350 to finalise each loan (regardless if its tied the same security), whereas St George, Westpac (and possibly other banks) charge $350 to finalise the the last loan (therefore you can have as many subloans and not be charged multiple times).

 

[Jamie M]

Hiya

All banks have their quirks.

Some charge a fee for things whilst others don't.

At present Suncorp don't have any ongoing fees for their package - other lenders still charge circa $350 - $400 p.a

Loan valuations are also carried out by third party valuers - not Suncorp and it sounds like the bulk of the initial valuation issue stemmed from the original valuer.

p.s - I'm not a suncorp fan boy - I get frustrated with all banks equally I just don't think they deserve a "warning" thread.

Cheers

Jamie

 

[neK]

Hiya
At present Suncorp don't have any ongoing fees for their package - other lenders still charge circa $350 - $400 p.a

Are you referring to Suncorp's Home Package Plus?
http://www.suncorpbank.com.au/home-loans/genuine-offer

Is that for new customers only or do they intend to provide it existing customers too?

Because I've called up Suncorp in the past asking them to reduce my rate to the advertised rate (I had more than $750k of borrows @ <80% LMI on the rate of 4.84% and the advertised rate was 4.79% had just come out) - Suncorp blatantly refused to drop it saying my current rate was the "best" they could do because i was an existing customer.

 

[Redom]

Are you referring to Suncorp's Home Package Plus?
http://www.suncorpbank.com.au/home-loans/genuine-offer

Is that for new customers only or do they intend to provide it existing customers too?

Because I've called up Suncorp in the past asking them to reduce my rate to the advertised rate (I had more than $750k of borrows @ <80% LMI on the rate of 4.84% and the advertised rate was 4.79% had just come out) - Suncorp blatantly refused to drop it saying my current rate was the "best" they could do because i was an existing customer.

Hmm did you give a hint of walking away? That may assist in getting their attention.

neK - i'm sympathetic to your situation, but as Jamie mentioned, all the banks have a few quirks in their fee structure. You may be equally unimpressed by a range of banks and the 'hidden' fees that pop up from time to time.

Overall in terms of pricing, Suncorp are on the mark (particularly atm). Sure their backend hasnt kept up with demand, but thats understandable given the quality of their offering.

Goodluck in getting the rate down.

Cheers,
Redom

 

[neK]

I already got the rate down.
After Suncorp direct wouldn't help me, I called my broker who arranged for it to be dropped to 4.63%.

So out of my lenders, Suncorp actually does have the lowest rate. But their inability to sort out my valuation without disturbing my tenants multiple times and the way they treat customers with contempt is why they suck and making me want to move.

Their products are actually decent. Too bad the attitude of their customer service scores a big fat zero.

I bet if i called up about getting the $375 fee waived they would tell me no as well. However the broker could probably resolve for me quickly and painlessly. But I'll still their call centre first... just to see if my assessment of them is correct.

 

[Terry_w]

I dont see what the problem is. You shouldn't expect a lender to match your rate with a new product or a special as this is designed to attract new customers. You should be greatful with that rate they gave you as it is very generous. I wouldn't be worried about a $300 fee either as the interest savings would more than make up for this. 1 valuer problem = so what!

 

[neK]

Actually there has been multiple valuation issues with Suncorp as well as several issues with the loans themselves over the years. All this has compounded to my disliking of them. But I persevered with them over the last 24 months.

The issue isn't the valuation amount, but rather their process.

I have found Suncorp to be extremely inflexible when it comes to apply common sense. The valuation process was just the final straw. The broker who signed this loan up 24 months ago is working to get this resolved (and chances are he will)... but its more the fact that why can't a customer get them to fix it themselves. Why must it be escalated that far up the chain for someone to apply common sense.

In contrast to Westpac and St George, I have found them to be much more helpful (St George's long wait time on the phone is annoying, but their call centre staff manner is 10/10 and makes up for it). Explain the situation, they do what they can to resolve it.

Suncorp is more the case of "my procedure manual doesn't make sense, but the manual says so, so it must be correct".

I didn't go with Suncorp for the rate, I went with them because I thought they would be good to work with. The rate happened to be a bonus.

Generally speaking, when promotions as such as waiving of fees come up, the big4 usually retrospectively apply the change to all customers, or apply it when the existing customer asks for it - because it makes sense from a retention perspective. No point in gaining 1 customer just to lose an existing one. Unfortunately Suncorp don't see it that way. But this is just my rant about them in general.

That aside, its the $350 fee they charge per loan that investors need to be aware of. A simple loan structure with 1 loan 1 property is fine, but when you have multiple split loans that's where you pay for it. Their waiving of the annual fee will help minimise this cost, so that can some what balance it out.

Couple that with their lack of common sense to be applied (I really don't want to be running to the broker every time to sort out things that are being hampered by their policy and procedure - the broker is busy and has better things to do), it can make simple tasks quite hard.

End of the day, this backs up the statement - its not all about the interest rate (lucky for me the rate in this case was a bonus - never went with them for the rate to begin with).

 

[Jamie M]

In contrast to Westpac and St George, I have found them to be much more helpful (St George's long wait time on the phone is annoying, but their call centre staff manner is 10/10 and makes up for it). Explain the situation, they do what they can to resolve it.

I seem to have lots of ongoing issues with one of those lenders whereby Suncorp have been quite reasonable of late.

I understand the frustration though - I deal with it daily! It's just not one bank that causes the grey hairs for me though :-(

Cheers

Jamie

 

[wylie]

Westpac... helpful... you should be doing stand up