Interest Rate Risk Management

We provide a range of products and services for managing interest rate risk.

These include product information and advice on the merits of different instruments, market information and analysis, economic analysis, and risk assessment.

Products

Interest Rate Swap

An agreement between you and Suncorp Bank to exchange interest payment obligations (for example from variable to fixed) for an agreed period of time. This risk management solution is typically used to hedge against rising interest rates and to minimise borrowing costs.

 Interest Rate Swap Product Information Document

Interest Rate Cap

An Interest Rate Cap is when you pay a premium for an agreement, which compensates your business if the interest rates rise above a certain pre-agreed level.

 Interest Rate Cap Product Information Document

Interest Rate Floors & Collar

Use an Interest Rate Collar to set a minimum and maximum interest rate you will pay on a variable rate loan. You can create a Collar by buying an Interest Rate Cap (see above) from Suncorp Bank and simultaneously selling an Interest Rate Floor to Suncorp Bank. An Interest Rate Floor is an agreement, that if interest rates fall below a certain pre-agreed level, then compensation to Suncorp Bank is required.

 Interest Rate Floors & Collar Product Information Document

Interest Rate Swaption

An Interest Rate Swaption is used to set a fixed interest rate now, for a future date, without actually committing to an Interest Rate Swap transaction (See Interest Rate Swap above). You pay a premium for the option to enter into a Swap agreement on a specified date, without the obligation, protecting against potential interest rate rises.

 Interest Rate Swaption Product Information Document

Ready to get in touch?

Contact our Interest Rate Risk Management team

We're open weekdays, from
8am - 5:30pm AEST

Call us on 1300 557 763

Things you should know

It may be necessary to vary the terms of your product to convert it to a different replacement product. This means you may end up with a product that has different terms and features from those you initially applied for. In any event, Suncorp Bank will give you more information about these changes before they take effect. You may also wish to consider applying for other products instead. If you have any questions, please contact us on 13 11 75.

Home Loan, Personal and Business Banking products are issued by Suncorp Bank (Norfina Limited ABN 66 010 831 722 AFSL No 229882 Australian Credit Licence 229882) to approved applicants only. Eligibility criteria, conditions, fees and charges apply and are available on request. Please read the relevant Product Information Document and terms and conditions before making any decisions about whether to acquire a product.