Suncorp has slashed commissions on a number of home loan products in a process it has described as moderating its lending.Earlier this month the group wrote to brokers and aggregators reminding them that from February 1 payment of full commissions would be dependent on using a new electronic lodgement facility.Suncorp has also made it clear to brokers that it is no longer interested in writing certain types of loans. It has set out what it calls targeted and non-targeted loans and will only pay full commissions on targeted loans.A Suncorp spokeswoman, Michelle Barry, said the group's target business was "simpler, more generic mortgages." It is discouraging construction loans, multi-borrower, multi-loan and trust mortgages.Barry said: "We haven't dropped any specific product but we are saying that construction loans, for instance, are not a target product for us."Suncorp will pay a reduced commission (30 basis points compared to the maximum of 60 basis points) on fixed rate loans to reflect the lower profitability of the product.The group will also pay incentives where it writes a loan that is part of a deal that includes other product, such as a transaction account. Barry said the group was hoping to encourage brokers to look for business where Suncorp was the main financial institution.Other "target" business includes loans greater than $150,000, loans below a 95 per cent loan to valuation ratio and loans with two securities.As well as reducing upfront commissions on several types of loans, Suncorp has adopted a policy of starting to pay trails in year two of the loan.Barry said the group expects that as a result of the changes it will see a reduction in the number of brokers and aggregators it deals with."We are definitely not withdrawing from the intermediated home loan market. But we and all banks are narrowing our focus down to fewer brokers. There is no set number. It depends on the broker's capability to meet various criteria."The group's move to moderate its home lending business follows an announcement in November that it would reduce its involvement in corporate banking and structured finance. Giving a September quarter update, Suncorp chief executive John Mulcahy said banking would remain part of the group's business but in a pared back form. Underpinning the new strategy was a view that credit market conditions would remain tight for some time and the bank would need to husband its resources. Suncorp chief financial officer Chris Skilton said there was not enough margin in the corporate end of the marketThe bank revised its forecast for lending growth for the full 2008/09 financial year from the eight to 10 per cent announced previously to around five per cent.