Suncorp borrowers could see minimum repayments jump when their loans move to ANZ. Here's why, and how to check if it affects you

Many Suncorp Bank borrowers who have paid ahead on their home loan are being told their minimum repayment could go up when their loan moves to ANZ. Their interest rate isn't changing at the move. What changes is how the minimum is worked out. Here's what Suncorp has told customers, why it happens, the options it lists, and why the same question matters even if you've never banked with Suncorp.

What Suncorp has told customers

ANZ bought Suncorp Bank in 2024 and is now moving its customers across. On 13 October, Suncorp emailed home loan customers: “If you've made advance payments and have funds available in your Cashback/redraw, your minimum loan repayment at ANZ is likely to increase.”

According to the ABC's report on 19 October, the email went on to say the increase “could be significant depending on the loan balance, how much is paid in advance and the remaining loan term.” One Suncorp customer who contacted the ABC said their email indicated repayments could rise by more than $1,000 a month.

Suncorp Bank CEO Malcolm Stedman told the ABC:

“For most customers there will be no change to their repayments. Those customers ahead on their repayments may see an increase in their minimum repayments, if they choose to take no action.”

Canstar's director of data insights, Sally Tindall, told the ABC that thousands of Suncorp customers were likely to be in for an “unwelcome shock”, but agreed that increases could be avoided if customers followed the instructions in Suncorp's email. The ABC reports that more than a million Suncorp customers are set to move to ANZ by 2027, and Ms Tindall referred to the changeover happening in June next year. Suncorp's website says loans will move “in the coming months”, so check your own timing with Suncorp.

Suncorp Bank stopped taking new home loan applications on 7 October, according to RatesBoard. Our 18 October article briefly flagged the move to ANZ; this piece looks at the minimum repayment change in more detail.

Why the minimum repayment can change when the rate doesn't

A principal-and-interest loan's minimum repayment is the amount needed to keep it on track to be repaid within its term. Many borrowers pay more, building a buffer they can draw back through redraw (Suncorp calls this Cashback).

Suncorp's explainer page sets out the difference between the two banks:

• At Suncorp Bank, advance payments reduce the loan balance, and the minimum repayment “may be recalculated” on that lower balance. Over time, paying ahead can bring the minimum down.
• At ANZ, advance payments still reduce the loan balance, but the minimum repayment “is not recalculated”. It is based on the loan balance plus any advance payments made.

Suncorp's page makes two easy-to-miss points: interest is still charged only on the reduced balance, and if you keep paying the higher ANZ minimum without redrawing, you may pay the loan off sooner and pay less interest overall. Suncorp also notes that if you redraw after the move, the minimum repayment isn't recalculated, so it stays the same even as the balance goes back up.

Canstar's Sally Tindall said the most common practice across banks is to exclude or discount extra repayments, or available cash, when calculating the minimum. In other words, ANZ's approach is the more common one.

Canstar's example, in numbers

Ms Tindall's example: $600,000 on paper, 25 years left and $100,000 extra sitting in the loan, so $500,000 is actually owed. The example used a variable rate of 6.49%.

Source: Canstar's example as reported by the ABC, 19 October 2026: 25 years remaining, 6.49% variable rate, principal and interest. Loanworth has checked the arithmetic; the difference is a Loanworth calculation, rounded. Example only, not a quote.

In both cases, interest is charged on the $500,000 owed. Suncorp's own page gives similar illustrations at 7%: on a $400,000 loan with 25 years to run and $150,000 in Cashback/redraw, it shows a Suncorp minimum of $1,767 a month against an ANZ minimum of $2,827 a month, a gap of $1,060.

If you're a Suncorp customer: what to check before the move

Read the email or letter properly

Suncorp says customers will get an email or letter outlining the key changes for their loan. It's worth reading line by line, because the changes depend on your loan's features. Suncorp also warns of scams using the move as cover, so check any unexpected message through Suncorp's official channels.

Run Suncorp's estimator

Suncorp's Estimated Home Loan Repayment Calculator compares your current Suncorp minimum with an estimated ANZ minimum, using your balance, Cashback/redraw, loan expiry and rate. Suncorp says the results are estimates only, and the actual minimum will be the amount in a notice from ANZ.

Understand the options Suncorp lists

Suncorp's page sets out several ways to keep the minimum closer to what you pay now. In summary:

• Apply all of your Cashback/redraw to the loan. This permanently reduces the balance and brings the ANZ minimum close to the current Suncorp minimum, but those funds can no longer be redrawn.
• Apply some of it. The more you apply, the closer the minimum gets to what you pay now, while keeping access to the rest.
• Use Cashback/redraw to cover the gap. Suncorp says you can book an appointment to use available redraw to make up the difference each month. The buffer shrinks over time, and once it runs out you'd pay the full ANZ minimum.

Suncorp's calculator notes also mention nominating a minimum between the two estimates. For fixed-rate loans, Suncorp says changes must be requested before the loan moves. Each option changes what you can access later, so ask Suncorp what each would mean for your interest and loan term.

A higher minimum isn't extra interest

For some households a higher minimum just means paying the loan off faster. For others, the lower minimum was their breathing room in a tight month. It helps to know which camp you're in before the move.

Check what happens to redraw and offset

Suncorp says you can still access eligible Cashback/redraw before the move, but afterwards access will depend on your loan type. It says home loans in a company name will lose redraw access, and that at ANZ only one offset account can be linked to a home loan. Loans with no balance owing, or in credit, will close at the move unless you act first, with redraw funds applied to the loan and any credit returned. If you rely on any of these as a safety net, check how yours is affected.

Not with Suncorp? This still matters

If you make extra repayments, it's worth knowing how your lender sets your minimum. With most banks ignoring extra repayments, paying ahead often shortens the loan rather than lowering the monthly minimum. If you'd want the option of dropping back to a lower minimum in a lean patch, ask your lender how that works on your loan and whether you can request a recalculation.

Redraw and offset aren't the same thing

Money in an offset account stays in a transaction account alongside the loan and reduces the balance interest is charged on. Redraw is extra money paid into the loan itself, which you may be able to take back out under your lender's terms. Lenders can treat the two differently, including when a loan changes hands. Our Resources page on offset vs redraw explains the difference in more detail.

Thinking about moving lenders instead?

Comparing is reasonable, but switching means a fresh application and serviceability assessment, which our 18 October article explained has become harder for some borrowers. It helps not to rush a decision because of one email.

Consumer Policy Research Centre CEO Erin Turner told the ABC that “Australians deserve better protections in the mortgage market”, and a spokesperson for Treasurer Jim Chalmers said “we expect the bank to treat its customers fairly and with respect.”

If you're struggling, talk to your lender early

Suncorp says customers worried about the new minimum can get in touch early. That applies to any lender. The free National Debt Helpline is on 1800 007 007.

Key dates

• Wednesday 21 October, 9:00am Adelaide time: RBA Deputy Governor Andrew Hauser at Citi's Australia & New Zealand Investment Conference.
• Wednesday 28 October, 11:00am Adelaide time: ABS Consumer Price Index, September 2026.
• Tuesday 3 November, 2:00pm Adelaide time: RBA decision. The cash rate is currently 4.60%.

Related reading

• The September rate rise has now reached almost every home loan, and switching lenders is getting harder (18 October)
• Advertised rate or comparison rate? (10 October)
• Offset vs redraw: what's the difference? (Resources)

Sources: ABC News, David Taylor, “ANZ's Suncorp acquisition could see mortgage payments rise upward of $1,000”, 19 October 2026 (Suncorp 13 October email, customer case, customer numbers and timing, Malcolm Stedman, Sally Tindall and Canstar example, Erin Turner, Treasurer's spokesperson). Suncorp Bank, “Changes to Home Loan Repayments” (how minimum repayments are calculated at Suncorp Bank and ANZ, worked examples at 7%, options). Suncorp Bank, “Changes to Home Loans” (interest rate at the move, redraw access, offset accounts, scams, hardship). Suncorp Bank, “Changes to Home Loans with No Outstanding Balance”. Suncorp Bank, Estimated Home Loan Repayment Calculator. RatesBoard, “The Best Home Loan Rates Available in October 2026”, 17 October 2026 (Suncorp applications). Reserve Bank of Australia, cash rate target (4.60%, effective 30 September 2026) and Coming Up calendar. Australian Bureau of Statistics, Consumer Price Index release calendar (next release 28 October 2026). Suncorp pages accessed 19 October 2026.

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