Suncorp worried at low doc loan discounts
Suncorp Metway chief executive John Mulcahy said some other banks were discounting low documentation home loan products. Mulcahy said he was surprised that some lenders had eliminated what he regarded as the usual 0.25 percentage point premium on low doc loans. Mulcahy said low doc loans were not being priced at a premium at all lenders, and in some cases lenders were giving discounts. Mulchay said the practice was not widespread, but was of some concern. Lenders believed to be waiving any interest premium on low doc loans include St George Bank and National Australia Bank.