| Term |
Description |
| Amortisation |
Paying off the principal and interest, on a loan over a period of time (Loan Term), usually by instalments. |
| Bridging Finance |
Short-term finance, which is used as a 'bridge' before securing long-term finance or selling a property. |
| Cashback |
If you have made additional repayments on your loan, you may be able to access these through our Cashback service. Find out more about how to apply for a loan Cashback. |
| Equity |
Equity is the difference between the value of an asset, such as a home, and the amount still owing on it. For example, if a property is valued at $350,000 and the owner owes $50,000 on their home loan, the equity is the difference, which in this case is $300,000. |
| Fixed Interest Rate |
A fixed interest rate does not vary for the fixed rate period, so payments remain constant for this period. |
| Genuine Savings |
For our home loans that do require a minimum deposit, you will need to demonstrate genuine savings accumulated in your name/s over a minimum 6 month period.
Genuine savings are defined as:
- Accumulated savings
- Fixed Term Deposits
- Sale of Shares (Net of Capital Gains Tax)
- Proceeds from Real Estate Sale
- After tax bonus from employer
- Non preserved superannuation contributions (where the borrower has access to finds in a cash form, and meets Suncorp’s minimum employment requirements)
- Real Estate Equity (must be confirmed by valuation when used as additional security for the loan)
|
| Government or statutory charges |
All home loans and purchase/refinance of residential property attract government charges such as stamp duty and mortgage duty. These charges are determined by the relevant State government, and will vary from State to State. |
| Interest-Only Loan |
Under an interest-only loan, usually the borrower makes no principal repayments for the interest only period of the loan. The repayments are calculated to cover the amount of interest and any monthly account keeping fee. |
| Joint Tenants |
Joint tenancy is the holding of property by two or more persons in equal shares. If one person dies, their share is transferred to the remaining joint tenants in equal shares. |
| Loan to Value Ratio (LVR) |
This ratio measures the amount of the loan, compared to the value of the security property. For example, if the property is valued at $250,000 and you borrow $200,000, the LVR would be 80% (200000 / 250000 x 100 = 80) |
| Lenders Mortgage Insurance |
Insurance taken out to protect the lender against losses on the loan, in case you default - it does not protect or cover the borrower. The cost of Lenders Mortgage insurance is paid by the borrower. |
| Lump Sum Payment |
An extra payment made by the borrower, in addition to the regular loan repayments. These lump sum payments reduce the amount of the loan. |
| No Deposit Option |
Suncorp may lend up to 100% of the purchase price or valuation of the home in which you wish to live (whichever is the lesser), less financed Lenders Mortgage Insurance- with our No Deposit Option. Exclusions and maximum loan amounts apply.
For example, if the purchase price and valuation of the property is $300,000 we will lend $300,000.
You will need to cover all bank, legal, government fees, charges or costs associated with the purchase of the property.
First Home Owners can use their First Home Owners Grant towards these costs. We can process the First Home Owners Grant application on your behalf with the Suncorp Home Loan.
|
| Principal & Interest Loan |
This is the most common type of loan. The loan is repaid in regular instalments which repay some of the outstanding loan balance (principal) as well as covering the interest each month. |
| Progress Payments |
If the property you purchase is under construction, progress payments may need to be made to the builder as the building is constructed. |
| Redraw Facility |
See Cashback. |
| Refinancing |
Switching your loan from one lender to another. |
| Settlement (Home Purchase) |
Settlement is when the loan is drawn down and the exchange occurs completing of the sale or purchase of the property.
|
| Settlement Date |
The date on which settlement takes place.
|
| Stamp Duty |
There are two types of Stamp Duty.
Stamp duty is a state government tax which is payable when a property is transferred. It is calculated on the purchase price of the property and is paid by the buyer. Stamp Duty varies between states and territories. Mortgage Stamp Duty is payable on your mortgage and is calculated on your loan amount.
|
| Suncorp Deposit KickStart |
This option enables you to use the equity in the home of a family member or friend towards the purchase of your new owner occupied home. Suncorp may lend you up to 110% of the purchase price and or valuation of your new owner occupied home (whichever is the lesser). Terms and conditions apply. |
| Tenants in Common |
Two or more people who hold the property in specific shares. If one person dies, their share passes according to the terms of their will, and is NOT automatically transferred to the other property holders. |
| Variable Interest Rate |
A variable interest rate may increase or decrease with changes in financial market conditions. Repayments change to cover the new interest rate.
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