Changes to minimum business loan repayments
Minimum business loan repayments for Principal and Interest loans may increase.
Here’s why.
Your minimum loan repayments are likely to increase when your loan moves to ANZ, where you've made advance payments ahead of schedule on your loan.
This is because ANZ calculates minimum loan repayments for Principal and Interest loans differently to Suncorp Bank.
If you’ve made advance payments ahead of schedule on your loan, it is likely that your minimum loan repayment at ANZ will increase. While this may reduce the total interest paid over the life of your loan, it also means you’re likely to pay higher loan repayments.
How much your minimum loan repayment changes will depend on:
- how much you’ve paid in advance
- your remaining loan term
- your loan balance when it moves to ANZ.
How minimum loan repayments are calculated at Suncorp Bank
At Suncorp Bank, advance payments reduce your loan balance. Your minimum loan repayment may be recalculated based on that reduced loan balance.
This means advance payments:
- will reduce your loan balance
- will reduce the amount of interest charged
- may lower your minimum loan repayment over time.
How minimum loan repayments are calculated at ANZ
At ANZ, advance payments reduce your loan balance but do not usually reduce your minimum loan repayment.
This means that:
- interest will still be charged on your reduced loan balance
- advance payments will reduce the amount of interest charged
- advance payments won’t reduce your minimum loan repayment amount
- your minimum loan repayment may be higher at ANZ if you’ve made advance payments
- you may pay off your loan sooner (provided you don't access any Cashback/redraw) and pay less interest overall.
If you choose to access any advance payments via Cashback/redraw after the move to ANZ, your minimum loan repayment won’t be recalculated. Your minimum loan repayment would stay the same even if your loan balance increases because of accessing advanced amounts.
* Figures are indicative only and assume the loan balances in the examples below with a remaining term of 10 years at an interest rate of 7% p.a.
These examples are for illustration only and are not predictions or projections of the performance of your business loan. These examples do not reflect your loan and may significantly differ to the loan balance, remaining term, advance payments made and interest rate of your business loan.
The potential time and interest saved assumes you continue making the higher ANZ minimum repayment and do not redraw advance payments and that the interest rate remains the same. Actual outcomes will depend on your loan balance, interest rate, remaining term and individual circumstances.
What could my ANZ minimum loan repayment be?
Use our Estimated Business Loan Repayment Calculator to see what your minimum loan repayment could be at ANZ.
When your loan moves to ANZ, actual repayments may differ from the calculator estimates because the calculator estimates are based on point in time numbers provided at the time of the calculation.
Your minimum loan repayment is likely to increase at ANZ if you’ve made advance payments on your Principal and Interest loan prior to your loan moving to ANZ, even though your loan balance is the same.
How can I keep my minimum loan repayments similar to what I pay now?
You may be able to reduce your ANZ minimum loan repayment by requesting to apply some or all of your advance payments against your loan.
Option A:
Apply all of your advance payments to your loan
Request to apply all of your advance payments to permanently reduce your loan.
- Your loan will be permanently reduced.
- The funds will no longer be available to access or redraw (if available to you).
- Your ANZ minimum loan repayment will be reduced and be closer to your current Suncorp Bank minimum loan repayment.
You may wish to consider this option if you don’t expect to need access to these funds in the future and prefer a lower ongoing minimum repayment.
If you have fixed rate loans, you must request this change before your loan moves to ANZ (no fees apply) to reduce your ANZ minimum loan repayment. At ANZ, any advance payments that remain on your loan will not be available for redraw before or after your fixed rate period ends.
Use the Estimated Business Loan Repayment Calculator to explore how applying different amounts to your loan could affect your minimum loan repayments1. Please note that the calculator does not include all loan structures.
To go ahead with this option, complete the form to apply advance payments to your loan.
Contact us or book an appointment. If you have a Relationship Manager, contact them directly.
Option B:
Apply part of your advance payments to your loan
Request to apply part of your advance payments to permanently reduce your loan. The more advance payments you apply to your loan, the closer your ANZ minimum loan repayment will be to your current Suncorp Bank minimum loan repayment.
- Part of your advance repayments remains available to redraw (if eligible).
- The portion applied to your loan balance will no longer be available for redraw (if eligible)
- The more advance payments you apply to your loan, the closer your ANZ minimum loan repayment will be to your current Suncorp Bank minimum loan repayment.
- If you’re eligible, any available Cashback/redraw can still be accessed before or after the move to ANZ.
This option may suit you if you want to keep some flexibility.
Use the Estimated Business Loan Repayment Calculator to explore how different amounts could affect your minimum loan repayments1. Please note that the calculator does not include all loan structures.
If you have fixed rate loans, you must request this change before your loan moves to ANZ (no fees apply) to reduce your ANZ minimum loan repayment. At ANZ, any advance payments that remain on your loan will not be available for redraw before or after your fixed rate period ends.
If you have a variable rate loan and are eligible, any amount that remains in Cashback/redraw will still be available before or after the move to ANZ.
To go ahead with this option, complete the form to apply advance payments to your loan.
Contact us or book an appointment. If you have a Relationship Manager, contact them directly.
Consider what's right for you
Consider your options carefully and contact us if you need help or want to discuss your loan options or refinancing, including options for reducing your new minimum loan repayment.
To speak with lending specialist, book an appointment. If you have a Relationship Manager, contact them directly.
If you’re making Interest Only repayments
If you’re making Interest Only repayments, your repayments will continue to be calculated daily on your outstanding loan balance.
As the number of days in a payment period can vary, your repayment amount may change, and it may also change if your interest rate or loan balance changes. The same calculation method will continue to apply unless your loan transitions to Principal and Interest repayments.
For more information about how minimum loan repayments are calculated for Principal and Interest loans at ANZ, refer to the section above: ‘Minimum business loan repayments for Principal and Interest loans may increase. Here’s why’.
What do you need to do?
If you have any questions, contact your Relationship Manager or book an appointment with us.
How will my business loan move to ANZ?
We’ll be in touch in upcoming months to explain when the move to ANZ will happen, so you have time to consider the changes and chat with us. Making advance payments or accessing funds via Cashback/redraw before the move may significantly affect your minimum loan repayment amount when your loan moves to ANZ.
Shortly after the move, ANZ will send you a notice confirming your new ANZ minimum loan repayment amount and the date from which it will commence.
To check your Suncorp Bank minimum loan repayment amount before your loan moves to ANZ, use the Suncorp Bank App or Internet Banking or contact us at the Move Hub.
Frequently Asked Questions
You can check the interest rate on your business loan by accessing your account via Internet Banking or the Suncorp Bank App.
Your interest rate is only one part of how your minimum loan repayment is worked out.
If you’ve made advance payments, your minimum loan repayment at ANZ is likely to increase. This can reduce the total interest paid over the life of your loan but means that you are likely to pay higher loan repayments. This increase could be significant depending on the loan balance, how much is paid in advance and the remaining loan term.
Use the Estimated Home Loan Repayment Calculator or Estimated Business Loan Repayment Calculator to explore how applying different amounts to your loan could affect your minimum loan repayments
You can continue paying your current Suncorp Bank minimum loan repayment amount until your loan moves to ANZ.
We’ll be in touch in the coming months to explain when the move to ANZ will happen, so you have time to consider the changes and chat with us. Making advance payments or accessing funds via Cashback/redraw before the move may significantly affect your minimum loan repayment amount when your loan moves to ANZ.
Shortly after your move, ANZ will send you a notice confirming your new ANZ minimum loan repayment amount and the date from which your new minimum loan repayment will commence.
To check your current Suncorp Bank minimum loan repayment amount before your loan moves to ANZ, use the Suncorp Bank App or Internet Banking, or contact us.
If you don't do anything, your loan will still move to ANZ as planned. Shortly after your move, ANZ will send you a notice confirming your new ANZ minimum loan repayment amount and the date from which your new minimum loan repayment will commence.
You'll still have options once you've moved, though some may no longer be available depending on your circumstances, so if you'd like to talk it through or need support before the move, we're here to help. Book an appointment with us now to talk through your options, or if you have a Relationship Manager, please contact them directly.
You can continue paying more than your minimum loan repayment if you are already. When your loan moves to ANZ, you'll need to make sure your payments meet your new ANZ minimum loan repayment.
If you're having trouble making repayments, or think you might, get in touch with us as soon as you can. Acting early can give you more options and help stop things becoming harder to manage.
Both Suncorp Bank and ANZ offer a range of support depending on your situation, including:
- financial hardship support
- adjustment of your repayment schedule
- payment deferrals, where eligible (interest will still accrue during this time).
If you already have a financial assistance arrangement in place, it will continue as agreed. If you need support visit the Financial Difficulty page to find out more.
Have another question about the move to ANZ?
Chat to our virtual assistant, Scout. Scout is here to help or can connect you to someone who can.
Things you should know
Information relating to the move from Suncorp Bank to ANZ is of a general nature and is being provided without taking into account your particular financial needs, circumstances and objectives. While every effort has been made to ensure the accuracy of the information, it is not guaranteed. You should obtain professional advice before acting on the information in this website. It does not constitute legal or tax advice, and you should seek expert advice in this regard.
Australia and New Zealand Banking Group Limited (ABN 11 005 357 522) (ANZ) acquired Norfina Limited (ABN 66 010 831 722) (Suncorp Bank) on 31 July 2024. As Suncorp Bank is now part of the ANZ Group, it may be necessary to vary the terms of your Suncorp Bank product to match the terms of a similar ANZ product. This means you may end up with a product that has different terms and features to those you initially applied for. In any event, Suncorp Bank will provide you with a more detailed notice of these changes if the variation applies to your products. A full list of changes relating to the current product offerings can be found at suncorpbank.com.au/variation. Please contact us if you have any questions or if there is a feature that is important to you.
1 When your loan moves to ANZ, actual repayments may differ from the calculator estimates because the calculator estimates are based on point in time numbers provided at the time of the calculation.
