A loan where you can ‘prepay’ the following year’s interest. If that loan is an investment loan, the prepaid interest is generally tax deductible in the year you paid the interest. Many lenders offer them and they are used regularly by property investors.
Interest in Advance is available with Fixed Rate loans with Interest Only repayments. They are not available with variable loans, lines of credit or loans with P&I repayments as the lender cannot calculate the interest payable.
Whilst they are available for Owner Occupied and Investment loans, their features are more applicable to investment loans.
This fixed rate may CHANGE between the time we recommend the loan and settlement. Some lenders apply the fixed rate on the application date, others when you are approved, others when the loan settles. If you want to LOCK IN the fixed rate we show you, lenders will do that if you agree to pay a RATE LOCK fee. Some lenders charge a flat fee, others charge 0.1-0.2% of the loan you are fixing.