Suncorp Home Loan Review: Refinance for a cheaper and greener home loan

suncorp-refinance-review-img
A teapot sits between two vases of flowers on a windowsill.
Credit: Nathan Fertig, Unsplash

COVID-19 has put many of us on a tight budget and we're looking to cut costs. If your mortgage is 2-3 years old or more, there’s a high chance you’re paying a lot more than the best rates on the market. With record-low interest rates due to the pandemic, it’s worth finding out what your options are and considering refinancing your home loan.

It’s also a chance to choose a bank with a social conscience, as our eyes have been opened to the appalling operating conditions of Australia’s big banks through the Royal Commission and the adverse effects of climate change.

That's why we’ve reviewed the Suncorp home loan refinance offer to guide you through the process.

What is refinancing? Read our explainer.

In this Suncorp home loan review, we'll examine the benefits of a Suncorp home loan for you and the planet and whether Suncorp refinancing is best for you:

  • Low interest rates during the pandemic
  • A greener home loan
  • Is a Suncorp home loan better for you?

Low interest rates during the pandemic

Reducing your current rate by just 1% could save you around A$2000 a year. Put that into perspective over ten years, and it could completely change your budget. It also appears that the low interest rates are here to stay. Earlier this month, the Reserve Bank of Australia having announced their decision to proceed with quantitative easing. This makes the current rates far more competitive than any mortgage rates set two years ago.

A greener home loan

Refinancing is also a second chance to choose a bank that is not financing fossil fuels. This is a critical decision Australians have to make, as many of our banks (including the big four) continue to fund existing and new fossil fuel projects.

Suncorp has been gradually divesting their financing, insurance and investments from fossil fuels. This makes them an attractive choice for refinancing your mortgage. As the danger of global warming grows more imminent, it is important to make financial decisions with a social conscience.

At the same time, switching to a more ethical bank should not increase your mortgage repayments. Here is a brief overview of Suncorp’s current offer:

Pros

Competitive rates & offers – Suncorp's competitive 1.89% two-year fixed rate home loan offer is a very popular deal currently offered to customers.

Suncorp has announced that they will waive annual package fees for customers who refinance with a Suncorp home loan. Suncorp refinancing will save new Home Package Plus customers $375 per year or up to $11 250 over 30 years. In order to be eligible, customers must:

  • Be New Home Package Plus customers with Suncorp
  • A home loan of $250 000 or more with another financial institution that they are looking to refinance
  • A Loan to Value Ration (LVR), including Lender's Mortgage Insurance (LMI) less than or equal to 90%

Suncorp also offers other competitive deals, including:

  • Refinance for new home lending of up to $250K receive $2000
  • Refinance for new home lending of up to $750K receive $3000
  • Extra Frontline Cash Bonus of $1000 awarded to frontline workers
  • Loan to Value Ratio, including Lenders Mortgage Insurance is less than or equal to 90%
  • Available plans: Fixed Rate Home Loans, Standard Variable, Back to Basics Variable
  • Home Package Plus, Standard Variable and Fixed Rate loans for new external applicants (those looking to switch to Suncorp from another bank)
  • Principal & Interest (P&I) and Interest Only (IO) are both accepted

Flexibility – flexible repayments, loan terms, and Line of Credit Access Equity. If there is no Suncorp branch near your house, they have a mobile lender available to make home visits.

Cons

Fees – Suncorp charges monthly and/or annual fees on many of their loans. If this is above of your budget, we can negotiate with them for a better offer.

Documentation barriers – some customers have struggled to get approval due to the extensive documentation requirements. This is another area where consulting a mortgage broker can overcome these obstacles and remove stress from the refinancing process.

Is refinancing with Suncorp worth it for you?

Deciding whether Suncorp is the bank for you may seem tricky. Making changes to your home loan can be an arduous process on your own, especially if you’ve never done it before. This is where we come in. With our free brokerage services, we can help you:

  • Establish your goals on your budget
  • Review your home or property market value & regular expenses
  • Determine the cost of exiting your current home loan (loans with a fixed rate may have fees for early termination)
  • Negotiate costs of transferring to a new lender
  • Negotiate offers to suit your needs
A table illustrating how BFG invests commission into social impact work and provides customers with a tax advantage, unlike other banks and brokers.
BFG goes further than other brokers by empowering you to make a social difference.

We think you should be able to refinance with an ethical bank that will secure the future of our planet – and reduce your mortgage. With Benevolence Financial Group, you make an even bigger social impact. By going through us, you can help people in need while paying off your home loan. We invest up to 50% of our profits with one of our charity impact partners, most famously Habitat for Humanity and Save the Children. This donation is made on your behalf to make it tax-deductible for you. Switching banks during a pandemic doesn’t have to be a financial and time-consuming burden – it’s an opportunity to make a social difference.

Disclaimer: The information provided is general in nature and does not constitute financial advice. Please talk to us for recommendations on your individual circumstance and requirements.

Nicola Byrne

An error has occurred. This application may no longer respond until reloaded. Reload 🗙