End of Financial Year information
End of Financial Year is the time to consider fixing the rate on your new or existing Westpac Online Investment Loan.
Customers who wish to rollover an existing fixed interest rate loan, please refer to the date specified in the maturity letter/email we sent to you.
For new customers who haven’t previously fixed their rate or existing customers wanting to change the start date of their fixed rate loan, the deadline to fix the rate is 30 June 2020.
In addition to submitting your application, your prepaid interest payment (if prepaying) will need to be received by the start date of your new fixed interest rate loan.
How to fix your interest rate
Prior to submitting a fixed interest rate contract application we recommend you read the sections 'Fixed Interest Rates Loans' and 'Fixing the rate on your Westpac Online Investment Loan' below.
Fixed and variable loans each have different benefits and risks and you should consider which type of loan is best for your based on your personal situation. Before you make a decision, we recommend that you seek advice from your accountant or financial adviser.
Interest rates can increase and decrease over time, and these changes can impact the amount of interest you pay on your loan. Variable and fixed interest loans also typically have different applicable interest rates based on the amount borrowed. You should consider the amount you intend to borrow and the impact of potential changes in interest rates on the amount of interest you may pay over the life of your loan.
If you believe that interest rates will fall during your proposed loan period, a variable interest loan may result in paying less interest over the loan period. If you think that interest rates will rise during this period, then a fixed interest loan for all or part of your loan balance may result in paying less interest over the loan period.
Cash flow considerations may also impact your decision as to which type of loan is best for you.
If interest rates rise during your fixed interest rate term, then you may pay less interest than if you have a variable rate loan.
Your interest rate is fixed for a chosen period of time and this is known as the fixed term of the loan. During this time, your fixed rate loan is unaffected by changes to interest rates. Instead you will pay a pre-agreed amount of interest for the term of the fixed rate loan.
Interest rates can decrease during the period that you have chosen to fix your interest. This can result in your fixed interest rate being higher compared to current interest rates. If you repay or make a lump sum payment to your fixed rate loan during the fixed rate term, then you might have to pay a fee (see below).
At the end of the fixed rate term, you can select either a new fixed rate loan or your existing fixed rate loan will automatically switch to the variable rate prevailing at the time. We will communicate to you prior to the expiry of your fixed interest rate term with instructions on how to select a new fixed rate loan.
When we agree to lend you money at a fixed interest rate, we do so on the undertaking that you will make certain fixed rate payments for the whole of the fixed rate term. If you decide to repay your fixed interest rate loan before it matures you will still be charged the set amount of interest for the original term of the loan. This means that we will not refund the amount of interest that you have prepaid and you may be charged a break cost as per below.
If you decide to break or switch your fixed rate loan before it matures then you may need to pay an amount to us known as a break cost. The break cost amount depends on the interest rate movements and the remainder of the fixed rate period left to run. The break cost will be worked out on the same basis as if the fixed rate period had started on the day the repayment or switch is made.
Break costs can be charged to your loan where you have sufficient funds available, in order to cover these costs. You should consider speaking to your financial adviser if you require clarity on the risks associated with terminating your fixed interest rate loan early.
How is the break cost calculated?
Please refer to Clause 4A.3 of your Facility Agreement for an explanation of this.
The other provisions of the margin lending facility between us continue to apply including any rights and obligations regarding termination. In particular, if the facility is terminated early (including under Clause 7.1 of the current terms) then you and any security provider must pay us for any losses or costs (including any break costs) we suffer. These losses are likely to be affected by the change in wholesale market rates, and the remaining fixed interest rate period when the termination occurs.
The prepayment periods you can prepay for are 3, 6, 9 and 12 months. You may also fix your rate for up to 5 years but can only prepay for a maximum of 12 months.
To take up a fixed rate offer, please choose the amount you wish to prepay and your payment method then either:
- Submit your request online by using the button below
- Complete and return the Fixed Interest Rate Renewal form you received with your maturity letter using one of the methods outlined on the form.
The payment options are:
Default option (from available margin loan funds).
This option will increase your variable loan balance by the amount of the interest to be prepaid. This is also the default option if any other payment option (aside from compounding) fails. Payments that place the loan account into the buffer will not be accepted.
BPAY® Biller Code: 17111
Ref: Your six digit reference number
Make a Direct Credit to Westpac Online Investment Lending
Account Name: BT Securities Ltd
Account No: Your six digit reference number
Direct Debit from your bank account
Download and complete the Direct Debit Request Form to nominate a bank account, and return with your Fixed Interest Rate Request form.
Compound the interest to your fixed rate loan for the term of the loan at initial drawdown. Choose an option below. If no option is selected then the default is option 1.
- Add the compound interest to the fixed rate loan amount (by choosing this option, at the initial drawdown of your fixed rate loan, the balance will be increased by the compounded interest amount). The amount completed in the Total Loan Balance does not include fixed interest payment amount; or
- Include the compound interest in the total fixed loan amount. The amount completed in the Total Loan Balance already includes the fixed interest payment amount.
If you have an existing prepaid fixed loan, your interest payment is due on the date your current fixed margin loan expires. This date will appear in the renewal offer letter you receive.
If you are a new Westpac Online Investment Lending client or are switching from variable into fixed, your interest payment is due on or before your fixed Westpac Online Investment Loan term commences. Please note, if no payment is received by the due date, payment will be taken from funds available (provided there are sufficient funds).
If we don’t receive your fixed rate contract acceptance by the due date then your fixed rate contract may not be able to be established and will revert to a variable interest rate.
Please notify Westpac Online Investment Lending in writing 10 business days prior to your prepayment due/start date.
Please notify Westpac Online Investment Lending via fax, email or mail.
Should we reduce our fixed rates on or before the date your current fixed loan matures, we will decrease your interest rate by an equal value. In the event we increase our fixed rate on or before the date your current fixed loan matures, your fixed rate will not change.
If you wish to prepay certain amounts for each loan, the interest payment will be due on each loan’s expiry date. If you choose to prepay your total loan balance, your interest payment will be due on the later of the two loan expiry dates. Please note: you should receive one pack per fixed loan.
Things you should know
BT Securities Limited ABN 84 000 720 114 AFSL No. 233722 and Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 are together the issuers of the Westpac Online Investment Loan - Product Disclosure Statement (‘PDS’). This information has been prepared without taking into account your personal objectives, financial situation or needs so, before acting on it, you should consider its appropriateness in regard to these factors. The PDS and other disclosure documents are relevant when deciding whether to acquire or hold this product and can be obtained by phoning 1300 551 744. The tax position described is a general statement and is for guidance only. It has not been prepared by a registered tax agent. It does not constitute tax advice and is based on current tax laws and our interpretation. You should seek independent professional tax advice to determine any taxation implications applicable in your circumstances.