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.
Interest Only in Advance is different to choosing to make interest-only repayments on a new or existing home loan.
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.

Interest Only in Advance (IOA) Interest Rates

The below rates include the 0.20% p.a. discount for Interest Only in Advance

LVR stands for the initial loan-to-value ratio. The interest rates below are for new loans, and won’t change during the life of your loan as the LVR changes.

LVR⁺up to 70%: you’ll get an extra 0.10% p.a. discount off our standard interest rate if you’re borrowing less than 70% of our property valuation.
LVR⁺ above 70% up to 80%: our standard interest rate applies if you're borrowing above 70% and up to 80% of our property valuation.
LVR⁺above 80%: an extra 0.30% p.a. will be applied on top of our standard interest rate if you’re borrowing above 80% of our property valuation.

Fixed Rate Term	Annual Rate^{^}	Comparison Rate^*
1 year standard fixed rate less IOA discount	6.49%	9.40%
LVR up to 70% (Includes discount of 0.10% p.a.)	6.39%	9.30%
LVR above 70% up to 80% (no change to standard rate)	6.49%	9.40%
LVR above 80% (includes margin of 0.30% p.a.)	6.79%	9.69%
2 year standard fixed rate less IOA discount	6.29%	9.03%
LVR up to 70% (Includes discount of 0.10% p.a.)	6.19%	8.93%
LVR above 70% up to 80% (no change to standard rate)	6.29%	9.03%
LVR above 80% (includes margin of 0.30% p.a.)	6.59%	9.32%
3 year standard fixed rate less IOA discount	6.29%	8.73%
LVR up to 70% (Includes discount of 0.10% p.a.)	6.19%	8.63%
LVR above 70% up to 80% (no change to standard rate)	6.29%	8.73%
LVR above 80% (includes margin of 0.30% p.a.)	6.59%	9.02%
4 year standard fixed rate less IOA discount	6.29%	8.46%
LVR up to 70% (Includes discount of 0.10% p.a.)	6.19%	8.36%
LVR above 70% up to 80% (no change to standard rate)	6.29%	8.46%
LVR above 80% (includes margin of 0.30% p.a.)	6.59%	8.74%
5 year standard fixed rate less IOA discount	6.29%	8.22%
LVR up to 70% (Includes discount of 0.10% p.a.)	6.19%	8.12%
LVR above 70% up to 80% (no change to standard rate)	6.29%	8.22%
LVR above 80% (includes margin of 0.30% p.a.)	6.59%	8.50%

Interest Only in Advance Interest Rates Under the Premier Advantage Package^#(PAP)

The below rates include the 0.20% p.a discount for Interest Only in Advance & a further discount of 0.20% for the PAP

LVR stands for the initial loan-to-value ratio. The interest rates below are for new loans, and won’t change during the life of your loan as the LVR changes.

LVR⁺up to 70%: you’ll get an extra 0.10% p.a. discount off our standard interest rate if you’re borrowing less than 70% of our property valuation.
LVR⁺ above 70% up to 80%: our standard interest rate applies if you're borrowing above 70% and up to 80% of our property valuation.
LVR⁺above 80%: an extra 0.30% p.a. will be applied on top of our standard interest rate if you’re borrowing above 80% of our property valuation.

Fixed Rate Term	Annual Rate^{^}	Comparison Rate^*
1 year standard fixed rate less IOA and PAP discounts	6.29%	8.44%
LVR up to 70% (Includes further discount of 0.10% p.a.)	6.19%	8.34%
LVR above 70% up to 80% (no change to standard rate)	6.29%	8.44%
LVR above 80% (includes margin of 0.30% p.a.)	6.59%	8.73%
2 year standard fixed rate less IOA and PAP discounts	6.09%	8.19%
LVR up to 70% (Includes further discount of 0.10% p.a.)	5.99%	8.09%
LVR above 70% up to 80% (no change to standard rate)	6.09%	8.19%
LVR above 80% (includes margin of 0.30% p.a.)	6.39%	8.48%
3 year standard fixed rate less IOA and PAP discounts	6.09%	7.99%
LVR up to 70% (Includes further discount of 0.10% p.a.)	5.99%	7.89%
LVR above 70% up to 80% (no change to standard rate)	6.09%	7.99%
LVR above 80% (includes margin of 0.30% p.a.)	6.39%	8.28%
4 year standard fixed rate less IOA and PAP discounts	6.09%	7.81%
LVR up to 70% (Includes further discount of 0.10% p.a.)	5.99%	7.71%
LVR above 70% up to 80% (no change to standard rate)	6.09%	7.81%
LVR above 80% (includes margin of 0.30% p.a.)	6.39%	8.10%
5 year standard fixed rate less IOA and PAP discounts	6.09%	7.65%
LVR up to 70% (Includes further discount of 0.10% p.a.)	5.99%	7.55%
LVR above 70% up to 80% (no change to standard rate)	6.09%	7.65%
LVR above 80% (includes margin of 0.30% p.a.)	6.39%	7.93%

Note that a discount or margin 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 Rate^*
1 year	6.49%	9.4%
2 year	6.29%	9.03%
3 year	6.29%	8.73%
4 year	6.29%	8.46%
5 year	6.29%	8.22%

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 Rate^*
1 year	6.29%	8.44%
2 year	6.09%	8.19%
3 year	6.09%	7.99%
4 year	6.09%	7.81%
5 year	6.09%	7.65%

Rates for other loan product types

Sustainable Upgrades home loan

Variable rate	Comparison rate
4.49% p.a	4.87% p.a

$4k to $50k loan amount on Principal & Interest repayments. 10-year maximum loan term. One Sustainable Upgrades home or investment loan per property.

Things you should know

Conditions, credit criteria, fees and charges apply. Residential lending is not available for Non-Australian Resident borrowers.

This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness of the information and if necessary, seek appropriate professional advice. This includes any tax consequences arising from any promotions for investors and customers should seek independent, professional tax advice on any taxation matters before making a decision based on this information.

Key Fact Sheet for Home Loans

You can make total prepayments of up to $30,000 (cumulative) for fixed loans, without costs or fees applying. You may incur a break cost and administration fee if your prepayments exceed this threshold, or if at any time before the end of a fixed rate period you switch to another product, interest rate (fixed or variable) or repayment type.

^ 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.

^*Comparison rate: The comparison rate is based on a loan of $150,000 over the term of 25 years. WARNING: This comparison rate is true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in a different comparison rate.

^#Premier Advantage Package: Conditions of Use and $395 annual package fee applies. You must either hold or be approved for a Westpac Choice transaction account in order to qualify and continue to receive the benefits of the Premier Advantage Package. Applicants must have a Westpac Choice transaction account linked to the home loan at the time of settlement and must keep this account open for 60 days after settlement. Before deciding to acquire a Westpac Choice account, read the terms and conditions, and consider whether the product is right for you. Tax consequences may arise from this promotion for investors and customers should seek independent advice on any taxation matters.
Premier Advantage Package Conditions of Use (PDF 200KB)

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.

⁺LVR stands for the loan-to-value ratio. LVR is the amount of your loan compared to the Bank’s valuation of your property offered to secure your loan expressed as a percentage. Home loan rates for new loans are set based on the initial LVR and won’t change during the life of the loan as the LVR changes.