Suncorp Bank sends mixed signals on home lending 11 November 2014 4:27PM John Kavanagh Suncorp Bank is sending the market mixed signals about its mortgage business. Last month it announced an aggressive home loan discount offer and bumped up its broker commission, but yesterday it released a quarterly report saying its focus was on credit quality, margin and prudent lending.Last month's offer included a discounted standard variable rate, a waiver on its annual package loan fee and a 15 basis point commission bonus for brokers, which took its upfront commission to a market leading 80 bps.Yesterday's September quarter update said: "Suncorp Bank has responded to an increasingly competitive mortgage lending market by focusing on credit quality and net interest margin."The bank's loan book reduced by 0.9 per cent in the quarter. It said it expected to return to system growth in the December quarter.Suncorp said its net interest margin was at the top of its target range of 1.75 per cent to 1.85 per cent and impaired loans were down 15.6 per cent to A$281 million.