Features of a Suncorp Home Loan
Following are the top features of the Suncorp Bank Home Loan:
Suncorp Home Loan Cashback
Cashback is the capability to retrieve any surplus payments made by the user. This means any kind of funds added to the loan beyond the obligatory monthly sum minus the amount for the upcoming payment.
Let’s understand this with an example. For instance, if your regular contributions are £1,000 each month and you contribute £2,500 monthly, over half a year you'd have an excess of £9,000 from the additional payments. Therefore, you can avail 'Cashback' ranging from £1,000 (as a base amount) to £8,000 (the overall surplus minus one monthly payment). It's essential to note that Cashback is solely applicable to the variable offerings and not the Suncorp Fixed home loan rates.
Suncorp Loan Splitting
As the name suggests, the Suncorp fixed home loan rate has limited flexibility. It doesn't accommodate features like cashback, additional loans, or offsets. Additionally, exceeding your standard repayments by more than £500 monthly might incur penalties. Thus, while the Suncorp fixed home loan rate can provide stability, especially if Suncorp home loan rates climb, you might not want to allocate the entirety of your loan to it.
On the other hand, Variable loans offer benefits such as offsets, Cashback, and greater adaptability. However, they come with the inherent risk of fluctuating Suncorp home loan interest rates.
Interest Only Loan
You're essentially covering only the monthly interest, without making any dent in the principal amount. This approach is commonly associated with investment loans, which are usually structured as a type of adjustable-rate mortgage. Thus, according to your needs, you can consider going ahead with this option.
Under the substitute security feature, one has the capability to modify a loan, particularly fixed loans with associated payout fees—by substituting one property for another. One can provisionally secure the loan with a Term Deposit while they search for a new property. Clients must formally request this alteration and secure approval. This is to confirm that any contractual modifications still reflect your ability to service the loan in the future. It's essential to note that this isn't a method to maintain a loan without a consistent income stream. Demonstrating your capacity to manage the loan repayments remains imperative.
Benefits and Drawbacks of Suncorp Home Loan
Helps You Save
One of the most common benefits of choosing Suncorp Group for your home loan is the up-front savings you are able to garner on your Suncorp home loan with lower interest rates.
Waived Establishment Fee
The second benefit is the establishment fee that is waived from a linked mortgage offset account. A mortgage offset account works like a regular transaction account. It is just that it is linked to the home loan. And if you use an offset account, in which case all or some part of your account balance is ‘offset’ daily against your home loan balance.
More Value from Extra Options
While a linked transaction account is a requirement of the package, you can easily choose from a wide range of financial services that come with your home loan package.
Bundling products that offer you benefits could enhance your savings further. A home loan package tailored to your needs might yield savings by:
- Eliminating yearly charges on credit cards
- Foregoing monthly service fees on current accounts
- Reduced Suncorp home loan rates on insurance policies.
- It's worth noting that these reductions might be applicable throughout the loan duration, during the package's initial year, or on freshly initiated policies. Therefore, always ensure you thoroughly review the conditions of any appealing deal.
Helps You Simplify Your Finances
The Home loan packages by Suncorp can help you streamline your financial management and aid you in more effective financial planning.
The following can be the drawbacks of getting a home loan.
You will end up paying a significant amount of your money in the form of interest. Thus, it can substantially increase the overall cost of your home.
Home loans can easily last up to 15, 20, or even 30 years. This means committing to a long-term financial obligation.
Risk of Foreclosure
If you fail to make your loan payment, the lender might take possession of your home via a legal process called foreclosure. It will result in the loss of your home and can also damage your credit score.
Once you have a home loan to settle, it might become significantly harder for you to move or relocate.