Home Loan Repayment Tips
Tip 1: Pay off your mortgage as quickly as you can
One of the simplest ways to save money on your mortgage is to pay it off as quickly as you can. The longer you take to pay off the loan principal, the more interest you’ll end up paying along the way, and the higher the overall cost of your loan will be.
Tip 2: Think about the way you make repayments
How you make repayments can have a huge effect on the overall term and cost of your loan.
- If your loan has the flexibility to allow increased regular repayments without incurring additional fees or charges, take advantage of it whenever you can.
- Make more frequent repayments – such as weekly or fortnightly. In both cases, you’ll actually be making the equivalent of 13 monthly repayments each year, saving you money by reducing the principal and therefore the interest you’ll pay over the term of your loan.
Use our extra repayment calculator to see how you could save.
Tip 3: Deposit any spare cash into your loan as soon as you can
Lump Sum or Extra repayments at any time help reduce the time and interest cost of your loan by reducing the balance and interest you will pay on that balance.
If your loan has the flexibility1 to allow lump sum or extra repayments without incurring additional fees or charges, take advantage of it whenever you can.
Suncorp Bank’s Cashback redraw facility can also give you the added flexibility of being able to access the additional repayments you paid, when you need it2.
Use our lump sum repayment calculator to see how you could save.
Tip 4: Align your loan repayments with your income cycle
Set up your repayment periods with the same regularity as you get paid – so if you get paid fortnightly, make fortnightly repayments1 on your home loan. By structuring repayments this way, you will always be in a position to maximise the amount of money paid against your home loan. All Suncorp Bank home loans give you the option of making weekly, fortnightly or monthly repayment periods.
Tip 5: Don't lower your repayment
If your contracted minimum home loan repayment drops because interest rates fall, don't lower your repayment.
Using this strategy, you’re effectively making regular extra repayments, because you’re paying more than the minimum monthly requirements each month. And as you’re used to paying this amount already, you won’t even notice.
Tip 6: Use an offset account to help knock years off your home loan
A Standard Variable Rate Home Loan comes with the option of linking an Everyday Options account to the home loan as a 100% Home Loan Offset facility, which enables you to use your income and savings to reduce your loan interest3.
If you’d like to speak to someone straightaway, please call 13 11 55 Mon-Fri 8am-6pm (AEST)
What can I expect?
Whether you want to get pre-approval, a new loan or refinance your existing loan with Suncorp, you can apply quickly online. Your dedicated lender will review your application and reach out to you in the next business day to discuss your options and answer any questions you have.
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.
2. You need to apply for Cashback, which may be available subject to conditions specified in the contract. Please read these conditions carefully. Available Cashback may exclude any recent cheque, direct debit or pay at post payments and external transfers cannot be performed using online Cashback. Fixed Rate home loans are excluded from Cashback.
3. A Mortgage Offset facility can be established by linking your Everyday Options account to the loan account and having it in offset mode. A Mortgage Offset Fee may apply to link the 100% Home Loan Offset facility to your home loan, which is waivered under the Home Package Plus. The Mortgage Offset fee is charged to your linked loan account.
Banking products are issued by Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No 229882 Australian Credit Licence 229882 (“Suncorp Bank”) to approved applicants only. Please read the relevant Lending Fees and Charges and the Home Package Plus terms and conditions before making a decision regarding any Suncorp Bank products. Fees, charges, terms and conditions apply and are available on request or on our Product Information Documents and Forms page.