Home Loan Repayment Tips

How you actually 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 and lump sum 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 loan¹.

Extra repayments at any time 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.

Suncorp Bank’s Cashback redraw facility can also give you the added flexibility of being able to access the equity in extra repayments when you need it².

This strategy allows you to keep as much money as possible on your loan at all times. Leaving extra money in your loan for just a few days each month can have a substantial effect on the interest you pay, and the overall term of your loan.

Set up your repayment periods with the same regularity as you get paid – so if you get paid fortnightly, make fortnightly repayments 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.

If your minimum regular home loan repayment drops because interest rates fall, don't lower your repayment.

By maintaining your current repayment, you’ll pay off your loan a lot sooner. 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.

A Suncorp Bank Standard Variable Rate Home Loan comes with the option of a 100% Home Loan Offset facility (utilising an Everyday Options account) that enables you to use your income and savings to reduce your loan interest³.