Increasing your Home Loan
Have a home loan, and need some additional funds?
With a Suncorp Bank 'Add' or 'Equity' Loan, you can utilise your existing Suncorp Bank home loan to achieve just that. Whether you're:
- Planning renovations
- Consolidating your debt
- Ready to buy your dream car
Our Add and Equity Loans can help.
What are the 'Add' and 'Equity' Loans?
The 'Add' and 'Equity' loans are both ways to 'top up' or to 'borrow more' using your existing home loan.
- An Add Loan increases your existing loan sum.
- An Equity Loan allows you to use the equity in the value of your home to obtain a new loan.
Add Loan
An Add Loan increases your existing loan account and can only be completed on a variable home loan. If you have a Fixed Rate loan, you would need to break-off the Fixed Rate which could incur Early Payment Interest Adjustment1.
An add loan will increase your current repayment amount, but your remaining loan term, and loan type remains the same.
Example: A customer has a $300,000 home loan, with 20 years remaining. They apply for an Add Loan of $10,000 for a new car. If they are successful, their home loan would increase to $310,000, still with 20 years remaining.
Equity Loan
An Equity Loan allows you to use the equity in the value of your home to obtain a new separate home loan. This is often done instead of an Add loan, if the loan is currently in a Fixed Rate term and it is not beneficial to break the Fixed Rate early. You may also consider an equity loan, if the purpose of the funds has a shorter life cycle than a property (car) so you can match the term of the loan. This allows you to monitor exactly what you've paid and left owing on your additional borrowings.
An equity loan will also allow you to choose a different loan product to your current home loan.
A lending specialist can help you with the decision between these options
Fees and Terms
It may be necessary to vary the terms of your product to convert it to a different replacement product. This means you may end up with a product that has different terms and features from those you initially applied for. In any event, Suncorp Bank will give you more information about these changes before they take effect. You may also wish to consider applying for other products instead. If you have any questions, please contact us on 13 11 75.
Home Loan, Personal and Business Banking products are issued by Suncorp Bank (Norfina Limited ABN 66 010 831 722 AFSL No 229882 Australian Credit Licence 229882) to approved applicants only. Eligibility criteria, conditions, fees and charges apply and are available on request. Please read the relevant Product Information Document and terms and conditions before making any decisions about whether to acquire a product.
1 For Fixed Rate Home Loans, an Early Payment Interest Adjustment (EPIA) applies if more than the prepayment allowance (currently $500.00 per month) is paid in excess of the agreed monthly repayment. The EPIA also applies if the loan is repaid in full or the agreed fixed rate period is broken for any reason. EPIA applies to the whole amount prepaid. Find out more information on EPIA or ask in branch for our EPIA brochure.
