Buying a home
With the right banking setup, you can save time and money on your home loan
3 July 2021
There are plenty of tips and tricks to help you get the most out of your home loan. Getting your home loan sorted can be a busy time, but it’s also a great opportunity to think about setting up your banking. Here are our tips on how to set up your banking and how a mortgage offset can help you save time or money with your home loan.
Easily migrate your details
Moving your details when you first set up your new banking with Suncorp is easy! Use the Suncorp Account Switching tool to save a heap of time by moving saved payee and biller information from your old bank account to your new Suncorp account. No more time wasted rekeying account numbers and BSBs from your old banking profile. It takes just a few easy clicks and it’s free. Find out more about the Account Switching Tool
Set up alerts
You can set up balance alerts on your Suncorp Bank account. A balance alert notifies you via email when your balance goes over, or falls below, a certain amount. To set up a balance alert, simply login to your Suncorp Internet Banking and click the icon next to the account you wish to set up an alert on. This can be very useful to keep you informed about your balance. You might choose to move extra funds to a savings account based on your balance. Or if your balance falls below a set amount, you might make a transfer to avoid unnecessary fees.
Make extra repayments
Certain loan types (normally variable rate loans) may offer the flexibility to make extra repayments at no additional cost. Making extra repayments on your home loan over and above your loan repayment can help you pay your loan off sooner. Suncorp Bank customers with Standard Variable Rate or Back to Basics Variable Rate home loans can make additional repayments anytime. This feature can be particularly useful for customers with Back to Basics Variable home loans (no mortgage offset). Making extra repayments directly to the loan can also save you interest.
Save with mortgage offset
An offset account is a transaction account linked to your home loan. Unlike a regular direct debit account, money in your mortgage offset account reduces the interest you pay on your home loan. If you’re like most, your income is paid directly into your main transaction account and you use this as a direct debit account for everyday spending. When this account operates in offset mode, the balance is working harder for you every day by automatically offsetting your home loan.
Say you have a $500,000 home loan.
You have $20,000 in your linked offset account.
Your home loan interest will be calculated on $480,000, rather than $500,000, saving you interest.
Try out our offset calculator to see what you could save. Under My loan details, select Home Package Plus - Standard Variable, or for first home buyers Home Package Plus - Standard Variable - First Home Buyer, in the Product dropdown box. Then toggle across to the Extra repayments tab and enter an offset amount to see the interest that could be saved for those types of loans
Try multi-offset with sub-accounts
If you have put away some savings, you may not want the temptation of leaving it in your everyday account. You could consider a home loan that allows multiple offset accounts (multi-offset). At Suncorp our Standard Variable Rate Home Loan and Everyday Options account supports 100% multi-offset with linked savings sub-accounts. The balances of all the funds in your main transaction account and the linked subs are combined to offset the amount owed under the loan thereby reducing the interest on your linked Standard Variable home loan.
These features work together to help you budget better. Sub-accounts can help you better manage your everyday spending and saving. For example, you might like to split your pay into different expenses like bills, transport, and even holiday, and set up transfers and payments directly from these subs, whilst still benefiting through the multi-offset feature with this account!
Set up recurring payments
As well as being able to make extra repayments on your home loan at no cost for certain loan types (normally variable loans), you can choose to pay weekly, fortnightly, or monthly. You’ll pay off more per year if you pay fortnightly or weekly but split your monthly payment by two or four accordingly. In both cases, you’ll pay the same as 13 monthly repayments in a year (instead of 12 with a standard monthly repayment). That adds up over the course of a loan! If you have a Fixed Rate loan just be mindful that extra repayments on your home loan are often restricted, or you may incur early repayment fees. It’s always best to check the repayment conditions on your loan to make sure you don’t get caught out with any surprises.
Don’t lower your repayments
If your minimum regular home loan repayment drops because variable interest rates fall, and your home loan supports unlimited additional repayments at no cost, you may like to consider keeping on paying the same amount that was payable pre-rate change. In other words, you don’t lower your repayment to meet the lower interest rate. By maintaining your current repayment amount, you’ll pay off your loan sooner. By doing this, you’re effectively making regular extra repayments, because you’re paying more than the minimum monthly requirements each month. And as you’re already used to paying this amount, you won’t even notice! It’s a simpler way to manage your mortgage.
Bundle your home loan
Bundling your home loan can open the door to discounted interest rates and benefits on other banking products your lender may offer. Suncorp Bank’s most popular home loan offers, the Home Package Plus and the Better Together Special Offer, combine eligible home loans with a Suncorp Bank transaction account. Other benefits can include access to discounted insurance, up to 20% off your first year’s premium on new to Suncorp Home, Landlord and/or Contents insurance policies, and no annual fee on Suncorp Credit Cards to new lending customers.*
There are many options when choosing a home loan and finding ways to manage your mortgage. Make sure to look at all your options to make choices that best suit you.
*National Australia Bank Limited (ABN 12 004 044 937, AFSL and Australian Credit Licence 230686) (“NAB”) is the credit provider and issuer of Suncorp Clear Options Credit Cards. Suncorp-Metway Ltd ABN 66 010 831 722 (“Suncorp Bank”) promotes and distributes Suncorp Clear Options Credit Cards on NAB's behalf under an agreement with NAB. NAB has acquired the business relating to this credit from Citigroup Pty Ltd (ABN 88 004 325 080, AFSL and Australian Credit Licence 238098) (“Citi”) and has appointed Citi to assist to administer the Credit Cards. Suncorp Bank will not guarantee or otherwise support NAB's obligations under the contracts or agreements connected with the Credit Cards (other than those relating to Suncorp Internet Banking and Suncorp Telephone Banking).