If you’re looking to take out a mortgage, finding an ethical bank is probably one of many things you’re looking for. In Australia, most of the big banks are funding fossil fuels. Choosing an environmentally friendly bank is one way you can help insure the future of our planet, and encourage other banks to do the same. Finding the right bank for a home loan can seem overwhelming, especially with a social conscience. We’ve reviewed Suncorp’s mortgage rates to cut through all of the finance talk and give you a better idea of what they’re offering.
Suitable for many borrowers
Pros
- Relatively competitive interest rates, especially when compared to the big four banks
- They do not assess loans based on credit scoring
- Their Lender’s Mortgage Insurance (LMI) is one of the cheapest on the market, meaning you may have significant savings with them
- Many of their home loans allow you to have multiple offset accounts and don’t require genuine saving
Cons
- Slow approval process if you go directly to the bank. Come to us if you’re having this problem with Suncorp for faster approval
- Strict documentation requirements may make it difficult to bank with them
- Unique situations (e.g. overtime, irregular bonuses) may make it difficult to get approval or a great deal from them
- Poor customer satisfaction compared to other small banks, particularly on customer service
Suncorp is divesting itself from fossil fuels
Suncorp previously made loans to coal, gas and oil companies. However, Market Forces found that the bank has changed tack. Recently, Suncorp decided to ban all future financing, investing in and insuring of new fossil fuel production or exploration. The bank plans to phase out existing agreements to underwrite and finance oil and gas by 2025, and directly investing by 2040. This means they will not be part of funding the the government’s gas-led economic recovery.
However, it isn’t all rosy. Suncorp’s fossil fuels policy leaves them room to continue insuring gas-fired power stations and gas and oil pipelines. This is a weakness in their approach, but they are still ahead of the big banks and insurers in Australia.
The best home loan for you?
Suncorp’s mortgage rates may be the best suited to your situation. In that case, they’re a great choice for protecting our future against climate change.
If their home loans do not suit your situation, there are a few other ethical banks to consider. Bank Australia is leading sustainable business practices for the banking sector (see our review of their home loans here). Bendigo and Adelaide Bank is actively working to reduce their carbon footprint. You can check out a longer list from Market Forces here.
Unfortunately, there are a lot of factors to consider when choosing an ethical bank with mortgage rates that work for you. We want you to be able to take out a loan without it costing you extra time or resources, or costing the planet. With us, the social impact does not stop at the bank. We invest up to 50% of our upfront commission into a charitable cause addressed by one of our impact partners, such as Habitat for Humanity or Save the Children. This will be tax-deductible as a donation on your behalf.
More industries are beginning to adopt higher standards for ethical and sustainable business practice. Banking needs to keep heading in that direction. With your home loan, you can help make that happen.
Disclaimer: The information provided is general in nature and does not constitute financial advice. Please speak to us for recommendations on your individual circumstance and requirements.
