Suncorp borrowers face higher minimum mortgage repayments as loans shift to ANZ

Customers who are ahead on their home loans warned that monthly payments could rise by hundreds of dollars unless they act before the June changeover

By LineZotpaper

Published19 October 2026

Read Time3 min

Suncorp mortgage customers are being warned that their minimum monthly repayments could rise by hundreds of dollars, or in some cases more than $1,000, as their loans are transferred to ANZ Bank, because the two banks calculate minimum repayments differently. Suncorp emailed customers on October 13 advising that borrowers with extra payments or funds in redraw may see their minimum repayment increase when the changeover occurs in June next year.

More than a million Suncorp customers are scheduled to move to ANZ by 2027, and the bank has begun notifying borrowers that their minimum repayments could increase when their loans migrate.

Suncorp's email, sent on October 13, warned: "If you've made advance payments and have funds available in your Cashback/redraw, your minimum loan repayment at ANZ is likely to increase." One customer who contacted the ABC said the email indicated repayments could rise by more than $1,000.

The difference reflects how each bank calculates minimum repayments. Suncorp had allowed customers with redraw and cashback facilities to reduce their minimum monthly repayments. ANZ does not have this policy, so customers who are ahead on their loans could face higher minimums unless they act.

Sally Tindall, director of data insights at Canstar, said thousands of Suncorp customers were in for an "unwelcome shock" when the changeover occurs in June next year. She said most banks exclude extra repayments from the minimum repayment calculation, while some include them, producing a lower required payment. On a $600,000 loan with $100,000 in extra repayments, the two approaches produce monthly repayments of about $4,047 and $3,373 respectively at the average owner-occupier variable rate of 6.49 per cent.

Suncorp Bank chief executive Malcolm Stedman said increases could be avoided. "For most customers there will be no change to their repayments," he said. "Those customers ahead on their repayments may see an increase in their minimum repayments, if they choose to take no action." Ms Tindall agreed, if customers followed the email's instructions.

Consumer Policy Research Centre chief executive Erin Turner said the episode showed how little power Australian borrowers hold. "Australians deserve better protections in the mortgage market to give them more certainty about what they will pay and the conditions for their loan," she said.

The transfer follows ANZ's takeover of Suncorp in 2024. The ACCC initially opposed the acquisition, with deputy chair Mick Keogh warning in August 2023 that reduced competition "will lead to customers getting a worse deal" in home loans, Queensland small business banking and agribusiness banking. The Australian Competition Tribunal later set aside that decision, and the Queensland and federal governments approved the deal.

Queensland Treasurer David Janetzki said the deal was agreed by the former Labor government and that former Treasurer Cameron Dick should explain why protections were not included. A spokesperson for federal Treasurer Jim Chalmers said: "While these are commercial decisions for ANZ we expect the bank to treat its customers fairly and with respect, otherwise they'll look for better deals from others."

Analysis

Why This Matters

More than a million Suncorp customers are scheduled to move to ANZ platforms by 2027, making this one of Australia's largest banking migrations.
Borrowers who are ahead on repayments, and who have used redraw or cashback to reduce their minimum monthly payments, could see their required payment jump when the loans transfer.
Consumer advocates say the episode shows how little certainty Australian borrowers hold under variable home loans.

Background

ANZ completed its takeover of Suncorp in 2024 after the ACCC's opposition was set aside by the Australian Competition Tribunal and the deal was approved by the Queensland and federal governments. The ACCC had argued in August 2023 that the acquisition would lessen competition in home loans, small business banking in Queensland and agribusiness banking in Queensland. Under Suncorp, customers with redraw and cashback facilities could reduce their minimum monthly repayments; ANZ does not offer that policy, so minimums will be recalculated when the loans migrate.

Key Perspectives

Suncorp Bank: Chief executive Malcolm Stedman says most customers will see no change and any increase can be avoided. "For most customers there will be no change to their repayments," he said. "Those customers ahead on their repayments may see an increase in their minimum repayments, if they choose to take no action."

Consumer advocates: Consumer Policy Research Centre chief executive Erin Turner says borrowers have little control over their loan terms. "Australians deserve better protections in the mortgage market to give them more certainty about what they will pay and the conditions for their loan," she said.

Canstar: Data insights director Sally Tindall says thousands of customers face an "unwelcome shock" because Suncorp and ANZ treat extra repayments differently when calculating minimum repayments, though she agreed increases could be avoided if customers act on Suncorp's instructions.

Governments: Queensland Treasurer David Janetzki says the deal was agreed by the former Labor government and has pointed to former Treasurer Cameron Dick. A spokesperson for federal Treasurer Jim Chalmers said the government expects the bank to treat customers fairly, "otherwise they'll look for better deals from others."

What to Watch

The June changeover date, when Suncorp loans move onto ANZ platforms and new minimum repayment amounts take effect.
Whether customers respond to Suncorp's email and adjust their repayments to avoid increases.
Any regulatory or political response, given the ACCC's earlier concerns about competition in Queensland banking markets.

Sources

Suncorp borrower's mortgage payments could spike amid transfer to ANZ · Just In

Checked

12 claims in this story checked against 1 source: 9 supported.

Show each claim

SupportedSuncorp borrowers face the prospect of higher minimum mortgage repayments when their loans move to ANZ.Just In: “ANZ does not have this policy, so some customers are being warned their minimum repayments will increase if they do nothing.”
SupportedAffected customers' monthly repayments could rise by hundreds of dollars.Just In: “Suncorp mortgage customers received an alarming email last week advising them that their monthly mortgage repayments could rise by hundreds of dollars.”
SupportedOne customer said Suncorp's email indicated repayments could rise by more than $1,000.Just In: “One Suncorp customer who contacted the ABC said Suncorp's email indicated home loan repayments could rise by more than $1,000.”
SupportedAn October 13 Suncorp email said advance payments and redraw funds were likely to increase the minimum repayment at ANZ.Just In: “The email sent by Suncorp to Suncorp customers on October 13 said: "If you've made advance payments and have funds available in your Cashback/redraw, your minimum loan repayment at ANZ is likely to increase."”
SupportedMore than one million Suncorp customers are set to move to ANZ by 2027.Just In: “More than a million Suncorp customers are set to move to ANZ by 2027.”
Partly supportedSally Tindall said thousands of customers were in for an "unwelcome shock" at the June changeover.Just In: “Sally Tindall, said thousands of Suncorp customers were likely to be in for an "unwelcome shock" when they find out their minimum repayments are set to rise as a result of the changeover to ANZ in June next year.”
Partly supportedMost banks exclude extra repayments from minimum-repayment calculations, while some include them.Just In: “The most common practice across the banks, Ms Tindall said, was to exclude or discount any extra home loan payments made, or available cash, when calculating a person's minimum monthly repayments.”
Partly supportedAt 6.49%, the two methods produce monthly repayments of about $4,047 and $3,373 on the stated $600,000 loan example.Just In: “For example, if someone has a $600,000 debt owing on their mortgage, and 25 years remaining, but they have $100,000 in extra sitting in the loan, the bank will calculate the minimum repayment amount on the $600,000 debt owing”
SupportedMalcolm Stedman said most customers would see no repayment change, while customers ahead on repayments might see an increase if they took no action.Just In: “"For most customers there will be no change to their repayments," Suncorp Bank CEO Malcolm Stedman said. "Those customers ahead on their repayments may see an increase in their minimum repayments, if they choose to take no action."”
SupportedErin Turner said Australians deserved stronger mortgage protections and more certainty about payments and loan conditions.Just In: “"Australians deserve better protections in the mortgage market to give them more certainty about what they will pay and the conditions for their loan," Consumer Policy Research Centre CEO Erin Turner said.”
SupportedThe ACCC opposed the acquisition, with Mick Keogh warning in August 2023 that reduced competition would give customers a worse deal in the identified banking markets.Just In: “"Competition being lessened in these markets will lead to customers getting a worse deal."”
SupportedA spokesperson for Jim Chalmers said ANZ was expected to treat customers fairly and respectfully or they would seek better deals elsewhere.Just In: “"While these are commercial decisions for ANZ we expect the bank to treat its customers fairly and with respect, otherwise they'll look for better deals from others."”