Making extra repayments may help you pay off your loan much faster
It may sound simple, but keeping regular or even increased repayments is often a good way to reduce your loan balance and grow your equity. Extra repayments at any time can help reduce the time and interest cost of your loan. But for maximum time and interest savings, you should make extra repayments earlier rather than later, to take advantage of the effect of compounding interest over time. However, you should consider any additional fees or charges you may incur by making additional repayments if you have a fixed rate loan1.
There are a number of ways you can save on your mortgage repayments, including making extra repayments, using an offset account or making a lump sum payment. Use our calculator to see how you could save.
1 For Fixed Rate Home Loans, an Early Payment Interest Adjustment (EPIA) applies if more than the prepayment allowance (currently $499.99 per month) is paid in excess of the agreed monthly repayment. The EPIA also applies if the loan is repaid in full or the agreed fixed rate period is broken for any reason. EPIA applies to the whole amount prepaid. For more information on EPIA ask in branch for our EPIA brochure.
Home Loans are issued by Suncorp-Metway Ltd ABN 66 010 831 722 No 229882 Australian Credit Licence 229882 (“Suncorp Bank”) to approved applicants only. Fees, charges, terms and conditions apply and are available upon request. This advice has been prepared without taking into account your particular objectives, financial situations or needs, so you should consider whether it is appropriate for you before acting on it. For that reason, before acting on the advice, you should consider the appropriateness of the advice having regard to your own objectives, financial situation and needs. Where the advice relates to the acquisition, or possible acquisition, of a particular financial product, you should consider the Product Disclosure Statement before making any decision regarding the product. Contact us on 13 11 55 for a copy.