Ord Minnett Fix & Prepay
Fix your margin loan and prepay the fixed interest by the end of this financial year and earn Qantas Points towards your next holiday. Now is the time to consider locking in a discounted interest rate and taking advantage of the potential tax benefits* of the prepaid fixed interest as well as certainty in your interest rate.
Why fix and prepay the interest on a margin loan before 28 June 2024?
Earn Qantas Points^
If you're a Qantas Frequent Flyer Member, you could earn 20,000 Qantas Points pro-rated for every $100,000 of the loan you fix and prepay the interest on a 12-month term before the end of this financial year. Eligibility, terms and conditions apply.
Discounted rate and choice of term.
Take advantage of discounted interest rates for fixed rate loans. Select from 6 months to 5 years.**
Tax effective
Interest paid in advance by end of this financial year for up to 12 months, may be tax deductible this financial year.*
Qantas Frequent Flyer Membership
Submit your application to fix and prepay your interest in advance by 28th June 2024, and provide your Qantas Frequent Flyer number at that time.
A joining fee usually applies, however, Leveraged has arranged for this to be waived for new customers who join Qantas Frequent Flyer.
How does Fix and Prepay work?
Step 1 - Select (if you are new applicant)
Review the Product Guide for the Ord Minnett margin loan.
Step 2 - Apply for a loan account (if you are a new applicant)
Speak to your Ord Minnett adviser to determine if a margin loan is suitable for you.
Step 3 - Fix and Prepay (existing customers)
If approved for a margin loan, submit your application to fix and prepay your interest in advance by 28th June 2024, and provide your Qantas Frequent Flyer number at that time.
What timeline should I follow to fix and prepay the interest?
Application to open a new margin loan facility (if you are a new applicant)
To open a new margin loan facility in time for our Fix and Prepay Campaign we need to receive your margin loan application before close of business Friday 21 June 2024.
Applications are subject to the lender's approval and lending criteria applies.
Request to fix and prepay interest
If applying online or by phone, fix and prepay by 5pm (AEST) 28 June 2024.
If applying by email, fix and prepay by 1pm (AEST) 28 June 2024, a form is available upon request.
The lender must receive your request by no later than these times.
Changes to nominated bank account#
Changes to your nominated bank account details for direct debiting must be received by Friday June 21 2024, or 2 days prior to your nominated direct debit date, whichever date comes first.
Direct Debit arrangements#
If your fixed rate loan starts on a Business Day, then the nomination for interest to be prepaid via direct debit arrangements must be received prior to 1.00pm on the start date of your fixed rate loan.
If your fixed rate loan starts on a non-Business Day, then the nomination for interest to be prepaid via direct debit arrangements must be received prior to 1.00pm on the Friday before the start date of your fixed rate loan.
Nominations that are received after above times will be processed on the next Business Day. This will result in a variable interest charge on your loan account until the direct debit is processed.
Rates
Ord Minnett Margin Loan
| Balance tier | 12 month fixed rate paid in advance |
| $0 - $99,999 |
7.99% |
| $100,000 - $249,999 |
7.99% |
| $250,000 - $499,999 |
7.99% |
| $500,000 - $749,999 |
7.99% |
| $750,000 - $999,999 |
7.89% |
| $1m - $4,999,999 |
7.49% |
| $5m + |
On request |
Acknowledgements
Before submitting a Fix and Prepay Interest application, it is recommended all Borrowers seek independent financial advice and take into account the following points:
- Once a fixed rate loan has commenced, the Lender’s agreement is required to change its terms or cancel it.
- If a fixed rate loan is cancelled or if its terms change during the Fixed Term, break costs may be payable.
- If you have a Target Facility Balance, please discuss your preferred approach with us before you fix and prepay.
By applying to Fix and Prepay Interest, each Borrower acknowledges and agrees that:
- All quotes for a fixed rate are indicative and only valid for the time at which they are given. Current fixed rates are available from the Lender.
- The actual fixed rate applying to the loan amount will be the rate advised by the Lender in the prepaid interest confirmation or other communication to the Borrower.
- It is the Borrower’s responsibility to ensure that a properly completed Fix and Prepay Interest application is submitted in time. The Borrower should also check that the prepaid interest amount paid by the Borrower has been credited to the account.
- Neither the Lender nor any employees or agents of the Lender, including the Bendigo and Adelaide Bank Group, are responsible for any loss to the Borrower or other consequence(s) due to the Fix and Prepay Interest application, Fix and Prepay Qantas Points Offer application, other instruction or payment being declined, not being received in whole or part or on time, or being incomplete in whole or part.
- The Lender may decline the request to Fix and Prepay Interest at its discretion, including if an instruction to capitalise any interest (calculated at the fixed rate on the amount agreed for the fixed rate loan) may result in a breach of the Maximum Gearing Ratio.
- Any prepaid interest is usually not refundable.
- If the Lender accepts the Fix and Prepay Interest application, the entire interest charge for 6 and 12 month fixed rate loans must be paid in advance. Interest charges for fixed rate loans with terms greater than 12 months must be paid annually in advance.
- This paragraph only applies if you have a Linked Investment Account and a Target Facility Balance: Payments (specifically, sweeps) to and from a Linked Investment Account only take place on a Business Day. If you are relying on the sweep to pay an amount, this will not occur until the next Business Day. Until then, the amount is treated as a drawing and interest will be charged at the variable rate. We suggest you discuss your preferred approach with us before you Fix and Prepay.
- A fixed rate loan is treated as fully drawn under the margin loan facility. Once the interest charge is prepaid, the principal amount of the fixed rate loan will generally not change. Any uninvested portion will be credited to the variable rate loan. No interest is paid on credit balances and a credit balance in the variable rate loan will not be offset against the fixed rate loan.
- Any pre-existing fixed rate loan will continue to operate to the end of its fixed term. New fixed rate loans will operate from the commencement of their new fixed term.
- Once the Fixed Term expires, unless a new fixed rate is agreed, interest at the variable rate will apply.
- To be eligible to earn Qantas Points, borrowers must have a Qantas Frequent Flyer account and must provide their Qantas Frequent Flyer details to Leveraged at the time of finalising their Fix and Prepay Interest application. Qantas Points will not be awarded if the borrower provides they Qantas Frequent Flyer details after submitting their Fix and Prepay Interest application.
Qantas Offer Terms & Conditions
Fix and Prepay Qantas Points Offer - Terms and Conditions
These are the Fix and Prepay Qantas Points Offer (F&P Offer) Terms and Conditions.
You agree to these Terms and Conditions when you apply for the F&P Offer.
These Terms and Conditions form part of the Facility Terms and Conditions between the Borrower and Lender.
Definitions
In these Terms and Conditions:
(a) An Eligible Margin Loan means the Leveraged Margin Loan, Investments Funds Multiplier, Direct Investment Loan, and any other margin loans issued by the Lender where a Borrower fixes and prepays in advance the interest rate for up to 12 months.
(b) The F&P Offer Period means 1 June 2024 to 30 June 2024.
Unless otherwise specified, a term defined in the Facility Terms and Conditions has the same meaning in these Terms and Conditions.
1. How to apply for the F&P Offer
1.1. The Borrower must apply for the F&P Offer as part of their application to fix and prepay an Eligible Margin Loan.
2. When the F&P Offer applies to the facility
2.1. To be eligible for the F&P Offer, a Borrower must within the F&P Offer Period:
(a) fix and prepay in advance the interest rate for up to 12 months under an Eligible Margin Loan (Eligible Borrowers).
(b) link an eligible Qantas Frequent Flyer account (see clause 4) to the Eligible Margin Loan; and
(c) not already be receiving Qantas Frequent Flyer Points (Qantas Points) for the same Eligible Margin Loan.
2.2 The Borrower agrees that the interest paid in advance is not refundable in whole or part if:
(a) the prepaid interest has been or is in the process of being claimed by the Borrower as a tax expense or deduction. The Borrower must provide us with evidence that the amount has not been claimed as such if they seek a refund; or
(b) the Borrower has already been credited Qantas Points from the F&P Offer
2.3. Qantas Points may only be granted to one Qantas Frequent Flyer member (Member) for each Eligible Margin Loan eligible for the F&P Offer.
2.4. Qantas Points may only be granted to individual natural persons.
2.5. In the instance of an Eligible Margin Loan held by:
(a) more than one Borrower, only one of the Borrowers;
(b) a company, only one nominated director of the company;
(c) individual trustees, only one nominated trustee;
(d) company trustee, only one nominated director of the company,
(e) may be granted Qantas Points.
3. Changes, Limits, Suspension, or Cancellation of the F&P Offer
3.1. We may change, limit, suspend or cancel all or any part of the F&P Offer (including the awarding and calculation of Qantas Points and the definition of an Eligible Margin Loan).
3.2. While we endeavour to give the Eligible Borrower reasonable notice of such change, limit, suspension or cancellation, the F&P Offer is a scheme offered by a third party and as such, these matters may not be within our control. In some circumstances, less than 24 hours’ notice of the change, limit, suspension or cancellation may be given.
4. What Qantas Frequent Flyer accounts are eligible?
4.1. Qantas Frequent Flyer membership details must be provided at the time of applying for the F&P Offer. You must be a Qantas Frequent Flyer Member to earn and redeem Qantas Points. A joining fee usually applies, however, Leveraged has arranged for this to be waived for new customers who join Qantas Frequent Flyer via the link here.
4.2. Qantas Points will not be awarded under the F&P Offer if:
(a) the Qantas Frequent Flyer membership details are not provided at the time of application;
(b) incorrect or not current Qantas Frequent Flyer membership details are provided; or
(c) the Qantas Frequent Flyer membership details (e.g. name) that are provided do not match the Borrower’s details with the Lender.
5. How are Qantas Frequent Flyer Points earned?
5.1. The awarding and redemption of points are subject to the Terms and Conditions of the Qantas Frequent Flyer Program. Qantas can change the terms and conditions which apply to this program at any time.
5.2. Points will be awarded in accordance with applicable published terms from time to time.
5.3. We will calculate the points to be awarded and will arrange to transfer any awarded points to the linked Qantas Frequent Flyer account within 60 days from the day the application is approved.
6. Taxes and other charges
6.1. The Borrower must pay any taxes and airport related charges (including taxes on those charges) which may be due on any payments required to redeem points.
Important: The Qantas Frequent Flyer Program is operated by a third party. We are not liable for the operation or availability of the program, then redemption of points or any air travel or other goods or services obtained as a result of the program. Qantas is not liable to the Borrower or any other person in relation to the supply of services by us.
Qantas FAQs
Qantas Points Offer
Leveraged is offering all Borrowers who are Qantas Frequent Flyer members the opportunity to earn Qantas Points this prepay campaign when they fix their loan and prepay the interest for up to 12 months.
To be eligible for the offer, applications must be received by 28 June 2024. Your fixed rate loan can start between 1st June to 1st July 2024.
Eligible products include all margin loans issued by Leveraged Equities.
Qantas Frequent Flyer Members can earn 20,000 Qantas Points (pro-rated) for every $100,000 of the loan amount they fix and prepay the fixed interest for on a 12-month term this financial year. Eligibility, terms and conditions apply. See the Qantas Offer Terms & Conditions tab.
Points will be allocated within 60 days from the end of the prepaid offer period provided correct frequent flyer details are received.
Only Borrowers who are a Qantas Frequent Flyer member at the time of application can earn points. Points will be awarded to one Qantas Frequent Flyer member in accordance with Fix and Prepay Qantas Points Offer Terms & Conditions. See the Qantas Offer Terms & Conditions tab.
No, it’s a requirement that the Frequent Flyer surname, initial of first name and the membership number is an exact match to Qantas’ records. There should also be a direct match between the Qantas Member name and the margin loan Borrower name.
Yes, Borrowers can use the same frequent flyer number if they book multiple prepaid deals.
Already an Ord Minnett customer and ready to fix and prepay your interest?
Apply to fix and prepay your interest using Leverage Online. Alternatively, contact our team between 8:30am - 5:30pm AEST, Mon-Fri on 02 8282 8251.
FAQs
A fixed and prepaid rate is a fixed rate that applies to all or part of your loan balance where the fixed interest is prepaid in advance in a lump sum at the start of the fixed term. A fixed rate does not change during the agreed fixed term. This means that while variable interest rates may increase or decrease, the fixed rate applied to your fixed rate loan will not change during the fixed term.
The minimum fixed rate loan amount is $20,000 in multiples of $1,000 for requests above the minimum. The maximum amount you can apply for will primarily depend on your approved Credit Limit. Please ensure your Credit Limit can accommodate the fixed rate loan you intend to apply for. Applications are subject to our approval.
The start date of your fixed rate loan can be any day from 1 June 2024 to 1 July 2024, with a fixed rate period we agree to.
If you are rolling over an existing fixed rate loan, the start date will be the next day after the expiry of your current fixed rate loan unless specified otherwise.
If you do not nominate a start date, we will use the date after the expiry of your current fixed rate loan or 30 June 2024 as the start date.
You can choose a fixed term of up to 5 years, with 6-months or 1 year fixed interest paid in advance. As an example, if you apply to start a 1-year fixed rate loan on 24 June 2024 the fixed rate loan will expire on 23 June 2025.
Fix and prepay interest rates are published on our Website in June 2024 and are subject to change at any time until your Fix and Prepay Interest request is accepted by us.
Interest is charged on the start date of the fixed rate loan except for fixed rate loans commencing on 1 July 2024 where interest will be charged on 30 June 2024.
You can only pay up to 12 months of interest at the start of the fixed rate loan. This is called prepaying interest.
You can choose to make a cleared payment to cover the interest charged, however the funds must be available in your margin loan account before the start date of your fixed rate loan.
Log into Leveraged Online and select Fix and Prepay from the navigation. Alternatively, you can call our team between 8:30am - 5:30pm AEST, Mon-Fri on 02 8282 8251 and fix over the phone.
Call 02 8282 8251 between 8:30am - 5:30pm AEST, Mon-Fri and one of our friendly team members will assist with your margin loan application and prepaid request. Submit a new application for a new margin loan account. Refer to ‘What timeline should I follow to fix and prepay the interest?’ to check the cut-off date for new margin loan applications.
We recommend submitting your Fix and Prepay Interest request before 1.00pm AEST on 28 June 2024 to allow sufficient time for your request to be processed before 5.00pm AEST on 28 June 2024. Applications and requests are subject to our approval and lending criteria applies.
Direct debit
You can instruct us to debit your Nominated Account that has an existing direct debit arrangement with us. If you do not have an existing direct debit arrangement, please complete the direct debit sections on the Leveraged Change Bank Account Details form available at www.leveraged.com.au/support/forms or ask your financial adviser whether a direct debit arrangement may be suitable. Please ensure that you have the required cleared funds available in your Nominated Account before the start date of your fixed rate loan.
Direct credit
You may be able to use your electronic banking arrangements to transfer an interest payment to your facility. The payment should be made to the BSB and account number of your Loan Account. Please contact us on 02 8282 8251 if you are unsure about these account details.
BPAY®
The Biller Code and Customer Reference are available on the Fix and Prepay Interest communication we will email to you or by calling 02 8282 8251.
® Registered to BPAY Pty Ltd ABN 69 079 137 518.
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 term. The fixed interest will be capitalised to the variable loan 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, Margining Event or put your facility into the Buffer, then we may not accept your request for a fixed rate loan. Please ensure you have sufficient borrowing capacity to pay fixed rate loan interest.
Note: Interest paid in advance is usually not refundable.
When you begin a fixed rate loan, funds will be made available to you to invest from the start of the fixed term.
This means that at certain times during the fixed term, part, or all of the fixed rate loan may be undrawn.
If you have an established Target Facility Balance with an activated sweep function, then we can help you manage any undrawn amount of the fixed rate loan by sweeping funds between your Loan Account and the Acceptable Linked Investment Account that forms part of your Secured Portfolio.
If your loan amount is less than your Target Facility Balance, we will arrange to automatically sweep any excess funds to the Linked Investment Account established on your behalf to earn credit interest on the excess funds. Where the total amount borrowed in your Loan Account is greater than the Target Facility Balance, we will automatically sweep the funds from the Linked Investment Account into your Loan Account to reduce the loan to the Target Facility Balance (or as close as possible subject to funds availability in your Linked Investment Account).
The aim is to maintain the total amount borrowed around your nominated Target Facility Balance.
To check whether your Loan Account is set-up for Target Facility Balance, please call us on 02 8282 8251.
Once a fixed rate loan has commenced, the Lender’s agreement is required to change its terms or cancel it. Break costs may be payable, and interest is usually not refundable if a fixed rate loan is cancelled or if its terms change during the fixed term.
Your fixed rate loan will revert to a variable rate unless you request for a new fixed rate loan.
Things you should know
^The Fix and Prepay Qantas Points Offer (F&P Offer) allows eligible borrowers to earn Qantas Frequent Flyer Points (Qantas Points) by fixing the interest rate and prepaying the fixed interest charge under an eligible margin loan product. The F&P Offer Period is between 1 June 2024 and 30 June 2024 (Offer Period). Borrowers eligible for the F&P Offer will earn 20,000 Qantas Points pro-rated per $100,000 under a 12 month term during the Offer Period. To be eligible, the borrower must be a member of the Qantas Frequent Flyer program at the time of the application. The awarding of Qantas Points under the F&P Offer is restricted to one Qantas Frequent Flyer member who is an individual (natural person) borrower, or in the instance of joint borrowers, only one individual, or in the instance of a company borrower, only one director of the company, or the instance of a Trust, only one trustee, or in the instance of a company trust, only one director of the company trust under each eligible product. For further details, please refer to the F&P Offer Terms and Conditions on leveraged.com.au/ordsfixandprepay
#Only applicable if prepaying interest by direct debit via a nominated bank account.
*We recommend that you obtain your own independent professional and tax advice on the risks and suitability of fixing the interest rate and prepaying the fixed interest cost, and to determine whether your interest costs will in fact be fully deductible in the current financial year in your particular circumstance.
**The maximum fix and prepay term to earn Qantas Points is 12 months. Interest charges for fixed rate loans with terms greater than 12 months must be paid annually in advance.
The Ord Minnett Margin Loan is distributed by Ord Minnett Limited ABN 86 002 733 048 and its subsidiaries (together "Ord Minnett"). Leveraged Equities Limited ABN 26 051 629 282 AFSL 360118 is the Lender (either in its own capacity or as trustee of any trust) for the Ord Minnett Margin Loan, and a subsidiary of Bendigo and Adelaide Bank Limited ABN 11 068 049 178 AFSL 237879. Ord Minnett does not lend money under the Ord Minnett Margin Loan. Any obligation of the Lender, Sponsor, Nominee or Ord Minnett Limited or money held in a Loan Account are not deposits with or liabilities of Bendigo and Adelaide Bank Limited.
The information on this website contains general advice only and does not take into account your personal objectives, financial situation or needs. This information does not constitute financial or tax advice. We recommend that you obtain your own independent professional and tax advice on the risks and suitability of this type of investment and to determine whether your interest costs will in fact be fully deductible in the current financial year in your particular circumstance. Terms, conditions, fees, charges and normal lending criteria apply.
Please consider your personal circumstances, consult a professional financial adviser and read the Product Disclosure Statement and Incorporated Statements (together, the ‘PDS’) and Product Guide, together with the terms and conditions applying to the product or service, before making an investment decision. To obtain a copy of the PDS and relevant information please call 1300 138 028, visit www.leveraged.com.au/ords/ or contact your financial adviser.
