What is Interest in Advance and how does it work?
Last updated 31 August 2017
Interest in Advance is an option on interest-only Fixed Rate Investment Loans, which lets you prepay next year’s interest and claim it back as a deduction this year. It also means that you will have the freedom not to have to make monthly payments during the year.
You should talk to your accountant or financial advisor to see if this product meets your tax needs.
How does it work?
Interest in Advance is only available on interest only Fixed Rate Investment Loans.
You pay 12 months interest before the Interest in Advance period starts. For a new loan, this is usually at settlement. If you don’t have a CommBank transaction account already, you will need to open one in case we need to debit any fees and charges to the account.
During the Interest in Advance period, you won’t be able to reduce the principal of the loan.
Can I repay the loan early or switch to another loan type?
Because it is a fixed-rate loan, if you repay the loan or switch to another type of loan, you may be charged an Early Repayment Adjustment and administration fee.
Talk to us
To find out more about the Interest in Advance option, please call us on 13 2224 from 8am to 8pm AEST or visit your nearest branch.