Fixed Rate (Interest Only)
Mortgage Loan

Product Description

The HomeSide Fixed Rate (Interest Only) Mortgage Loan is an interest only loan for residential investment properties where the interest rate is fixed for the period of the loan. Regardless of interest rate fluctuations, driven by changing economic conditions, the interest rate and interest payments will remain the same for the period of the loan.

Fixed Rate Mortgages can be of two types:

• Interest charged monthly in arrears or
• Interest charged annually in advance.

The Fixed Rate (Interest Only) Mortgage with interest charged monthly in arrears is available for 1, 2, 3, or 5 year terms. A Fixed Rate (Interest Only) Mortgage with interest charged in advance is available for a 1 year term only.

The HomeSide Fixed Rate (Interest Only) Mortgage Loan can only be used for the purchase or refinance of residential investment properties.

The HomeSide Fixed Rate (Interest Only) Mortgage has many features providing borrowers with substantial benefits, some of which are listed below.
Features Benefits
Fixed interest rate. Gives borrowers the peace of mind in knowing exactly what the interest rate will be for the fixed term.
Interest only.
Borrowers only pay the amount of interest calculated on the loan.
Pay interest in arrears or advance. Borrowers can choose to pay interest annually in advance or monthly in arrears depending on the term of the loan.
Automated payment. There's no need to worry about when payments are due as they are made automatically by direct debit to a nominated account held with any bank or building society.
Various terms to choose from. Interest in arrears loans are available for 1, 2, 3, and 5 year terms. Interest in advance loans are available for a 1 year term.
Rollover flexibility. At the end of the fixed term borrowers can apply to fix the interest rate again for any term available for this type of loan. Borrowers can also apply to transfer the loan to another HomeSide product (subject to approval).
Packaging. Borrowers can package the Fixed Rate Loan with other HomeSide Lending products. This flexibility allows borrowers to customise finance to suit their needs.
Portability. If borrowers sell the property and buy another, they can take their Fixed Rate (Interest Only) Mortgage Loan with them.
 

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