Suncorp Store Manager Amber Nijenhuis explains refinancing your home loan, how to calculate your savings and what the process is to apply to refinance.
When it comes to refinancing, a lot of people don’t realise the exact dollar savings they could make each month.
I use the refinancing calculator to put your current rate side by side with the current Suncorp Bank home loan rate, and I can say straight away what the difference in repayments are likely to be if you refinance based on the figures you provide.
If the savings each month are big then that could be a great opportunity to pay your home loan off faster, or access equity, or consolidate debt, depending on your own financial situation.
To refinance, the next step is to fill out the application form with a lender like me, who will check all your documents and make sure everything is in order. Then submit the application.
If you refinance over to us with a Suncorp Back to Basics home loan and borrow $150,000 or more, Suncorp Bank will not charge an establishment fee or monthly account keeping fee - customers love that.
If you have at least 20% equity when you refinance, the other fees you may need to consider are fees to release the mortgage from your existing bank, and to re-register the title with the state revenues office. If you don’t have 20% equity, Lenders Mortgage Insurance applies.
Once the application goes through and gets approved we’ll go through the contract with you to make sure you understand the terms, the rate, and the monthly repayments.
To refinance now, book an appointment with a Suncorp Bank mobile lender online.
Refinancing can save you lots in the long run, but exiting your current loan may cost you. If you have a fixed rate loan and you're within the fixed period, early termination penalties may apply. Other costs may include a loan establishment fee, mortgage registration fee, as well as any ongoing and exit fees.
The exact amount represented by these fees and penalties can vary depending on your arrangement with your lender, and the time left in your fixed rate loan period. Also, if you are borrowing more than 80% of the property value, you may be required to pay Lenders Mortgage Insurance. This isn't transferable across lenders.
Ensure the timing is right. If you have a fixed-rate loan, refinancing partway through the fixed period may be costly. Then compare and consider your options, while keeping your goals in mind. You should speak to a loan specialist if you need professional advice.
Establish goals. You may be after a lower rate, be dissatisfied with your current lender, or want to use your home’s equity to fund a renovation; if you know what you’re trying to achieve, it’ll be easier to choose the right loan.
You can compare our home loans to see which suits you best, and check out our repayments calculator to get an idea of how much your payments might be based on the amount you’d like to borrow.
You may want to consider refinancing your home loan if you're:
- Planning a renovation and want to borrow against the equity in your home
- Coming out of your fixed-term period and looking for another deal
- Dissatisfied with your current bank
- Looking to consolidate your debt
Dissatisfied with your current interest rate?
Potential savings are calculated using the information you have provided. Please note that the savings displaying are indicative only and do not represent the Bank making an offer of credit.
All calculations assume that the interest rate and loan term will remain unchanged and you will make principal and interest repayments for the remaining loan term. Each calendar year has the following periods – 12 months, 26 fortnights and 52 weeks. No fees or charges have been factored into the above interest saving calculation. Please refer to Lending Fees and Charges for all applicable fees.
If you have supplied your current interest rate, then total interest over the life of the loan is calculated by applying your interest rate to the amount still owing on your loan over the remaining loan term.
If you have supplied your minimum repayment amount, then total interest over the life of the loan is calculated by subtracting the amount still owing on your loan from the total of all payments made in the remaining loan term.
Potential interest savings are calculated by comparing the information you have provided to the above variable or fixed interest rates.
Loan to Value Ratio (LVR) limits are inclusive of Lenders Mortgage Insurance (LMI) where applicable. A repayment type of interest only is available on loans with an LVR limit < 90%. At the expiry of the interest only period, the rate will convert to the applicable P&I interest rate plus or minus any applicable margins specified in your credit contract.
# Each comparison rate is based on $150,000 over 25 years. WARNING: These comparison rates apply only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. Comparison rates for Interest Only Fixed Rate home loans are based on an initial Interest Only period equal in length to the fixed. Comparison rates for Interest Only Variable home loans are based on an initial 5 year Interest Only period.
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 Product Information Document for Suncorp Bank Personal Deposit Accounts and the Terms and Conditions for Suncorp Accounts before making a decision regarding a Suncorp Bank transaction account. Fees, charges, terms and conditions apply and are available on request or at suncorp.com.au/banking/help-support/documents-forms.
© Copyright Suncorp-Metway Ltd ABN 66 010 831 722 AFSL No 229882 Australian Credit Licence 229882 ("Suncorp Bank"). Registered office: Level 28, 266 George Street, Brisbane Qld 4000. In accessing Suncorp's site you agree to our Online Terms & Privacy Statement. Please ensure that you read these before accessing the site. Products and services including banking, superannuation and insurance (including life insurance, home and car insurance) are provided by separate companies in the Suncorp Group. Suncorp Bank is only liable for the banking products or services it provides and not the products and services of the other companies in the Suncorp Group.
For fixed loans, you can make repayments of up to $500 per month without penalty (find out more about EPIA)
Lock in your interest rate and repayment amount
A comparison rate is a rate that indicates the true cost of a loan. This rate incorporates certain fees and charges that are applicable for the chosen product.
Access extra payments you've made on your home loan using our loan Cashback feature. You will need to apply for this.