Fix and Prepay 2018
If you are looking for savings, service and certainty, June is the perfect time to lock in a discounted rate and take advantage of the potential tax benefits of a fixed and prepaid loan.
Three reasons to fix and prepay
Savings: Take advantage of discounted interest rates for fixed rate loans.
Certainty: Be certain of your borrowing costs.
Potential Tax Benefit: Pay up to 12 months interest in advance and you may be able to claim the amount as a tax deduction in the current financial year.
Click here to watch a video about these potential benefits.
Margin Loan and Investment Funds Multiplier
|Balance Tier||12 Month |
|$0 - $99,999||6.35%||6.45%|
|$100,000 - $249,999||6.09%||6.19%|
|$250,000 - $499,999||5.99%||6.09%|
|$500,000 - $749,999||5.89%||5.99%|
|$750,000 - $999,999||5.69%||5.79%|
|$1m - $4,999,999||5.35%||5.45%|
Direct Investment Loan
|$0 - $500,000||4.55%||4.70%|
Below are answers to some questions you may have. If your question is not addressed, speak with your financial adviser. Alternatively, call us on 1300 307 807 or email firstname.lastname@example.org.
What is a fixed and prepaid interest rate loan?
A fixed and prepaid interest rate loan means you will pay your interest in advance at the start of the term. A fixed interest rate does not change during the agreed term. This means that if general interest rates increase, the rate applicable to your fixed rate loan will not change during the term. Likewise, the rate applicable to your fixed rate loan will not fall if general interest rates fall during the term.
What is the minimum and maximum loan amount?
The minimum fixed loan amount is $20,000 (Margin Loan / Investment Funds Multiplier) or $5,000 (Direct Investment Loan) and multiples of $1,000 thereafter. The maximum amount you can apply for will primarily depend on your credit limit. Please ensure you have sufficient credit limit to accommodate the fixed rate loan you intend to apply for. Applications are subject to our approval.
What is the term and when does the loan start?
You can nominate a start date as any business day during June, up to and including 1 July 2018. You can choose the term to be either 6, 12 or 24 months. As an example, if you apply to start a 1 year fixed loan on 24 June 2018 the fixed rate loan will expire on 23 June 2019. If you are rolling over your existing fixed rate loan, please indicate the start date as the day after the expiry of your current loan. If you do not indicate a start date, we’ll choose one for you. Loans commencing on 1 July, 2018 will have interest charged on 30 June, 2018 otherwise interest will be charged on the start date of the loan.
How is the interest rate set?
The fixed rate applied to your fixed rate loan depends on general interest rates prevailing on the start date of your loan. Interest rates will be available in June, and are subject to change at any time until your loan application is accepted by us. We will publish the interest rate online.
When is interest payable?
You can pay up to 12 months of interest at the start of the fixed loan. This is called prepaying interest. Interest will be charged to your facility to ensure your fixed loan starts on the date requested. If you choose to make a cleared payment to cover the interest charged, funds must be available in your bank account before the start date.
I am an existing customer, how do I apply?
Visit the "Apply now" section of this site for information on how to apply. Please refer to “When do I need to apply by” below for important cut-off dates.
I am a new customer, how do I apply?
Visit the "Apply now" section of this site for information on how to apply.
Please refer to “When do I need to apply by” for important cut-off dates.
When do I need to apply by?
We recommend submitting your 'Fix and Prepay Interest' application form before Wednesday, 27 June 2018 to be confident of having your application form processed before 30 June 2018. Applications and requests are subject to our approval and lending criteria may apply.
How do I pay interest in advance?
|Direct debit||You can instruct us to debit your nominated account that has an existing general direct debit arrangement with us. If you do not have an existing direct debit arrangement, please complete a Direct Debit Request form, available from the Online Service or your financial adviser. Please ensure that you have the required cleared funds available before the start date of your fixed rate loan.|
|Direct credit||You may be able to use your electronic banking arrangements to transfer a payment covering the interest payable to your facility. The payment should be made to the account linked to your facility. Please contact us if you are unsure about these account details. If you choose this option, select “Capitalise interest” in section 3 of the Application Form.|
|Capitalise interest to your facility||This option is available to investors who have sufficient borrowing capacity and credit limit at the start of the fixed rate loan term. Interest will be capitalised to the variable portion of your facility on the day before the fixed rate loan starts. Capitalising interest to your facility is subject to our approval. If capitalising interest to your facility is expected to cause a Margin Call or put your facility into the Buffer, then we may not accept your application for a fixed rate loan. Please ensure you have sufficient borrowing capacity on the day before the fixed rate loan starts.|
|BPAY||The Biller Code and Customer Reference are available on the ‘Fix and Prepay Interest’ application communication we will send to you or by calling us. If you choose this option, select 'Capitalise interest' in section 3 of the Application Form.|
|Cheque||Cheques should be made payable to ‘Leveraged Equities Limited’ and crossed ‘not negotiable’. You should attach the cheque to your application form. We may process the cheques immediately upon receipt or any day before the start of the fixed loan term. Please ensure you have sufficient funds in your account. Cheques are not accepted when fixing a Direct Investment Loan.|
® Registered to BPAY Pty Ltd ABN 69 079 137 518.
If you are making a payment to cover the interest payable to your facility by cheque or direct debit, please ensure you have sufficient funds in your account.
Once your application form is accepted by us you can’t withdraw your request. Interest paid in advance is not refundable and may not carry over to future periods.
What is the ‘manage your loan’ option?
When you begin a fixed rate loan, funds will be made available to you to invest from the start of the term you chose. Many borrowers tend to progressively acquire their investment portfolio and/or sell their investments prior to the expiry of the fixed rate loan.
This means that any time during the term, part of the fixed rate loan remains undrawn.
We can help you manage any undrawn amount of the fixed rate loan by sweeping funds between your loan account and an acceptable CMA. Typically, borrowers nominate a target facility balance equal to their fixed rate loan.
Where the total amount borrowed through your loan account (both fixed and variable rate loans) is less than your target facility balance, we will arrange to automatically sweep any excess to a CMA established on your behalf and held as part of your secured portfolio. Where the total amount borrowed in your loan account is greater than the target facility balance, we will automatically sweep the funds back from this CMA and into your loan account.
The aim is to maintain the total amount borrowed around your nominated target facility balance. In this way you maximise the return by earning interest an on any undrawn fixed rate loans held on deposit in the CMA.
Can I change or withdraw my request?
Once we accept your “Fix and Prepay Interest” application form, you may not be able to change or withdraw your request. Generally, you cannot repay or terminate a fixed rate loan or change how interest is paid during the term. If we agree to withdraw, change, break or cancel your fixed rate loan then any interest paid in advance is not refundable and cannot carry over to future periods. It is recommended that you talk to your financial adviser before deciding to take any action.
What happens at the end of the term?
After the expiry of the fixed rate term, your facility will remain open and the interest rate will revert to the prevailing variable interest rate on your facility.
When do I need to apply by?
We recommend submitting your 'Fix and Prepay Interest' application form before Wednesday 27 June, 2018 to be confident of having your application form processed before 30 June 2018. Applications and requests are subject to our approval and lending criteria may apply.
|Action||Suggested last date for application submissions for processing before the end of the financial year|
|Application to open a new facility||Friday 15 June, 2018|
Changes to nominated bank account or direct debit arrangements
|Monday 25 June, 2018 or two days prior to your direct debit. Please note, nominations for direct debits received after 1.00pm Friday 29 June, 2018 will be processed on the next business day.|
‘Fix and Prepay Interest’ application form
1.00pm Australia Eastern Standard Time (AEST) time, Friday 29 June, 2018.
We must receive your application form and interest payment in cleared funds by no later than this time. Therefore, you should consider the timing of your payment method. Please contact us if you require further information.
By signing a ‘Fix and Prepay Interest’ application form, you acknowledge and agree that:
- All quotes for interest rates are indicative and only valid for the time at which they are given. Up to date rates are available from us. The fixed interest rate applicable to your fixed rate loan will be set by us at the start of the term.
- No member of the Bendigo and Adelaide Bank Group accepts liability for any loss or other consequence(s) of not fully receiving or acting on an application form, instruction or payment within any applicable time period.
- If you instruct us to capitalise interest to your facility and this is likely, in our opinion, to result in a Margin Call or put your facility into the Buffer, then we may not accept your application for a fixed rate loan.
- Interest paid in advance is not refundable and cannot carry over to future periods.
- The interest amount payable will be calculated on the amount specified in the application form as if the fixed rate loan is fully drawn down at the start of the term.
- Interest is not earned on any unutilised fixed rate loan or credit balance on the loan facility.
- If you are currently managing a fixed rate loan with us and decide to fix a new loan, we will continue to manage your facility when the new fixed loan starts. The target facility balance will be set as the new fixed loan amount.
Before deciding to apply we recommend you speak to your financial adviser. You should consider the following points:
- Once we accept your ‘Fix and Prepay Interest’ application form, you may not be able to change or withdraw your request.
- Generally, you cannot repay or terminate a fixed rate loan or change how interest is paid during the term.
- If we agree to withdraw, change, break or cancel your fixed rate loan then any interest paid in advance is not refundable and you may incur break costs.
- After the expiry of the fixed rate term, the interest rate will revert to the prevailing variable interest rate on your facility.
The Leveraged Equities Margin Loan and Investment Funds Multiplier are issued by Leveraged Equities Limited (ABN 26 051 629 282, AFSL 360118) as Lender and as a subsidiary of Bendigo and Adelaide Bank Limited (ABN 11 068 049 178 AFSL 237879).
Unless otherwise specified, references to ‘we’, ‘us’ or ‘our’ in this website means Leveraged Equities Limited (ABN 26 051 629 282, AFSL 360118) (‘LE’) or Adelaide Equity Finance (ABN 17 008 614 122 ) (‘AEF’) either:
- in its capacity as lender for the Margin Loan, Investment Funds Multiplier or Investment Loan; or
- in its capacity as trustee of any trust related to the Margin Loan or Investment Funds Multiplier; or
- in its capacity as the manager of a Margin Loan or Investment Loan.
The information contained on these pages is correct as at 1 June, 2018 and is subject to change. The content has been prepared by LE. No other party named or identified in this website or any of their respective bodies corporate are responsible for the preparation or content of this website. These pages contains general advice only in relation to margin lending. They have not been prepared with reference to the investment needs of any particular investor and should not be relied on as such. ˆThis is not intended as tax advice, please consult a registered tax agent.
You should read and consider the relevant Product Disclosure Statement (PDS), Product Guide, including the terms and conditions before deciding whether to apply for or continue with a loan. To obtain a copy of the PDS and Product Guide please call 1300 307 807, visit leveraged.com.au or contact your financial adviser.
We recommend that investors seek their own independent financial, legal and taxation advice before making any decision about investing or taking any action in relation to the material on these web pages. Lending and other approval criteria on the risks and suitability of this product may apply. Interest rates are indicative and are subject to change at any time. Fees, charges and government taxes may be payable. Not suitable for a self-managed superannuation fund.
LE is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). Any obligation of LE or money held in a facility are not deposits with or other liabilities of Bendigo and Adelaide Bank Limited (ABN 11 068 049 178, AFSL 237879), any other entity in the Bendigo and Adelaide Bank Group, any other deposit-taking institution or any other entity named in any document related to the Leveraged Equities Margin Loan.