End of Financial Year information

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.

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 both Clause 4A.3 of the Westpac Online Investment Loan Facility Agreement (PDF 425KB) and the Break costs Fact Sheet (PDF 87KB) 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. 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. Please refer to Clause 4A.4 of the Westpac Online Investment Loan Facility Agreement (PDF 425KB) for an explanation of this.

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 fix 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 paid. 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 

BSB: 262-755 

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.

Direct Debit Request (PDF 702KB)

Compounding

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.

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
   
   
2. 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 at least 10 business days prior to your fixed loan due/start date.

Please notify Westpac Online Investment Lending via fax, email or mail.

Should we reduce our fixed interest rates on or before the date your current fixed interest rate loan matures, we will decrease your new fixed interest rate by an equal value.

In the event we increase our fixed rates on or before the date your current fixed loan matures, and we have received your fixed interest rate loan contract by the due date set out in your rollover letter/email then the fixed interest rate set out in that letter/email will apply. However, if we have not received your fixed interest rate loan contract by the nominated due date, then we may increase the fixed interest rate for your requested fixed interest rate loan to reflect any such increase.

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.