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Fixed Rate Investment Property Loans - Interest Only in Advance

What is Interest Only in Advance?

  • Interest Only in Advance is a repayment option that offers Fixed Rate Investment Property Loan customers an additional interest rate discount for paying 12 months interest in advance.
  • By prepaying interest you can potentially reduce your tax liability for the coming financial year and conveniently consolidate interest repayments into one lump sum payment. 
  • This is not financial advice: we recommend that you consult your financial adviser to determine the benefits which may be applicable.

Who can have Interest Only in Advance?

  • Customers with existing Investment Property Loans can switch to an Interest Only in Advance product upon request.
  • Existing Interest Only in Advance customers with fixed rate terms expiring will receive a letter of offer to review their Interest Only in Advance arrangements 4 - 6 weeks prior to fixed rate expiry.
  • New customers can establish an Interest Only in Advance loan through our standard application process.

     

Note that a discount may apply -  please refer to your loan contract or call 132 558

Below are the Interest Only in Advanced Fixed Rate Home Loan interest rates available to fix or re-fix existing loans.

Interest Only in Advance Interest Rates

The below rates include a 0.20% p.a. discount for Interest Only in Advance (IOA)

Fixed Rate Term Annual Rate Comparison Rate1
1 year 4.39% 5.79%
2 year 3.89% 5.56%
3 year 3.99% 5.43%
4 year 5.09% 5.68%
5 year 4.95% 5.57%

Interest Only in Advance Interest Rates Under the Premier Advantage Package#

The below rates include a 0.20% p.a discount for Interest Only in Advance and a further discount of 0.20% p.a. for Premier Advantage Package (PAP). 

Fixed Rate Term Annual Rate Comparison Rate1
1 year 4.19% 4.85%
2 year 3.69% 4.73%
3 year 3.79% 4.69%
4 year 4.89% 5.02%
5 year 4.75% 4.98%
Things you should know

1. Interest must be paid in advance annually for each chosen fixed rate term to receive this rate. If after the first year of a fixed rate term interest is no longer paid in advance the Interest Only in Advance discount will be removed for subsequent years.

 

2. These comparison rates are based on a secured loan of $150,000 over the term of 25 years. WARNING: The comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan.
 

3. Interest Only in Advance Premier Advantage Package (PAP) customers receive a further 0.20% p.a. discount.

Interest Only in Advance interest rates are available on Fixed Rate Investment Property Loans with fixed rate terms of 1, 2, 3, 4 or 5 years.

Interest Only in Advance interest rates and discounts apply to new Fixed Rate Investment Property Loan and loans which have been switched into Interest Only in Advance products.  Existing fixed loans are not eligible unless the loan is re-fixed.  Interest Only in Advance discounts are subject to change.

Subject to Bank's approval. Normal lending criteria apply.

Other conditions, fees and charges apply.