All Topics / Finance / INTEREST IN ADVANCE – WHICH BANKS?

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Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of abundantone10922abundantone10922
    Participant
    @abundantone10922
    Join Date: 2003
    Post Count: 10
    April 22, 2015 - 6:44 am

    Hi all…but particularly brokers,

    We currently have a loan with St. George and pay 12 months interest in advance in June. Tax returns are done promptly and we receive a good return soon after. Love St Georges product but wondering who else offers interest in advance as we are considering a refinance (for another property)?

    Thanks ‘in advance’. :-)

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 23, 2015 - 7:59 am

    Most lenders offer it in some form or other.

    I have just refinanced a number of properties for another forum member and the 1 Year IIA rate was very sharp.

    He is on a large income this year which may reduce over the coming years and makes good financial sense.

    Just need to be aware the cut off period for a lot of lenders is coming and it is not a matter of merely settling prior to June 30.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of abundantone10922abundantone10922
    Participant
    @abundantone10922
    Join Date: 2003
    Post Count: 10
    April 23, 2015 - 9:03 am

    Thanks so much Richard. St George can offer 4.49% fixed for 5 years….and if IIA is paid, there is an additional .2% discount bringing it to 4.29%. Anyone you know doing better than this on IIA? Is there something else the lenders call IIA? I find it very difficult to find the product….Obviously not looking in the right spot….or using the right people. :-)

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213
    April 23, 2015 - 10:20 am

    Paying interest in advance means you need to fix your loan for 1 year.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of BlindFreddyBlindFreddy
    Participant
    @blindfreddy
    Join Date: 2015
    Post Count: 2
    April 24, 2015 - 4:20 pm

    The offer you have is really good. Most are at 4.39%, though I can’t confirm that StGeorge offer 0.2 further discount for IIA-I’d double-check that with them.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 27, 2015 - 11:09 am

    Freddy Terry is saying YOU CANNOT FIX A LOAN FOR 5 YEARS with IIA.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of abundantone10922abundantone10922
    Participant
    @abundantone10922
    Join Date: 2003
    Post Count: 10
    April 27, 2015 - 11:28 am

    I think the loan can be fixed for a period of 5 years, however I believe that a maximum of 12 (or 13) months interest in advance can be paid at a time. We currently have a 3 year fixed loan with St George and have been paying IIA for the past 2 years.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    April 27, 2015 - 6:32 pm

    Yes maximum IIA you can claim is 12 months however it can be a rolling period renewable each expiry.

    Cannot be a 5 year fixed rate but 5 x 1 Year fixed rates. Big big difference.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

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