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Interest in Advance Loans.

An Interest Only in Advance Loan is available on an investment loan where the interest rate is fixed.

What is an Interest Only in Advance Mortgage?

It is a repayment option that offers an additional interest rate discount for paying 12 months interest in advance. If a client is looking to reduce their tax liability for the coming financial year, this option of prepaying interest and consolidating the interest repayments into one lump sum payment may suit them.

For example if the loan amount was $300,000 and the fixed rate was 3.8% the interest only in advance repayment for the 12 months would be $ 11,400.

Who can have Interest Only in Advance?

Most Fixed Rate Investment Property Loans and Low Doc Fixed Rate Investment Property Loans are eligible for Interest Only in Advance. For customers who already have an investment property loan, most lenders will allow them to change to an Interest Only in Advance product. Just prior to the expiry of the 12 month Interest in Advance term, your lender will contact you to see if you would like another Interest in Advance term or another arrangement.

This is general information only and is subject to change at any time. Your complete financial situation will need to be assessed before acceptance of any proposal or product.

Personal loans made simple.

The best thing to do is speak to our finance broker who can compare your options and find a loan product that is right for your personal situation.


More FAQs.

What is an offset account?

When considering a mortgage, it's advisable to research different lenders and their product offerings to determine if they provide offset accounts as an option.

What are the costs of Refinancing? 

Several costs come with refinancing a home loan, although some of these costs are added to your new mortgage. You can get a rough estimate of the cost to refinance your mortgage by using a refinance calculator, or engaging a mortgage broker.

Settlement Day

On settlement day, it's important to consider tasks such as reviewing the final settlement statement, ensuring funds are available for the down payment and closing costs, and conducting a final inspection of the property before completing the purchase.

Reverse Home Loans

A reverse mortgage is a type of loan that allows homeowners who are typically 62 years or older to convert a portion of their home equity into cash.

Mortgage Refinancing

Mortgage refinancing is the process of replacing an existing mortgage with a new loan, typically to secure better terms, lower interest rates, or access equity in the property.

Lenders Mortgage Insurance

Lenders Mortgage Insurance (LMI) is a form of insurance that protects the lender in case a borrower defaults on their home loan, typically required when the borrower's deposit is less than 20% of the property's value.