At a glance

2.49 %P.A.
1 Yr Fixed Interest Prepaid
3.24 %P.A.
Comparison rate^
$ 300 
Application fee

Interest Prepaid Loan

Our investor 1 Year Interest Prepaid Loan is an interest only home loan with a fixed rate, which allows investors to pay the annual interest in advance. This type of loan may suit investors who have excess funds available to prepay the interest in one lump sum and claim as a deduction for the year.

You should talk to your accountant or financial advisor to see if prepaying interest is right for you and meets your investment needs.

Prepaid interest term

At BOQ we only offer a 1 year fixed term to prepay your interest however you have the option to continue to prepaid interest each year for up to 5 consecutive years. 

Interest Rate

The interest rate is fixed for one year and will automatically switch to the Clear Path Variable Home Loan if you don't wish to prepay interest for a further year.

Repayment options

Annual interest is paid via a lump sum payment from your BOQ transaction account. No extra repayments or principal reductions can be made during the prepaid period but can be made on the day of expiry before the next prepaid period commences.

Loan features

  • 1 Year Fixed Rate loan where interest is prepaid annually in advance
  • Available for investment purposes only
  • Maximum LVR of 80% applies
  • Interest can be prepaid each year up to a maximum of 5 years
  • At the end of the prepaid term, loan automatically switches to the Clear Path Investment Variable Rate Home Loan
  • Maximum overall loan term is 30 years
  • Principal reduction or extra payments can only be made on the roll over date
  • Break costs may apply if loan is repaid or fixed term is broken before the fixed term expiry date

 

Interest rates

 

Borrower Interest rate % p.a. Comparison rate % p.a.^

Investor - Interest Only

2.49

3.24

Ready to apply?

There are a few things you’ll need to begin, such as your proof of identity, employment details and financial details such as income, assets, expenses and liabilities.

Step 1.

Check your eligibility. You must:

  • Be 18 years of age or older
  • Have never been bankrupt
  • Be an Australian citizen or permanent resident
  • Earn a regular income

Important Information

For important information on our 1 Year Interest Prepaid Home Loan, view our Terms and Conditions.

You might also be interested in:

Our most popular low rate loan, packed with features

Clear Path Variable Home Loan

If you're looking for a fully featured, cheap home loan with a low rate, our Clear Path Variable Rate Home Loan is for you!

  • Owner Occupier and Investor options available
  • Mortgage offset
  • Unlimited free redraw and flexible repayments

Know what your repayments are for peace of mind

Fixed Rate Home Loan

A fixed rate home loan gives you certainty for up to 5 years without worrying about potential interest rate rises.

  • Owner occupier and investor options available
  • Great interest rates across our range of terms
  • Principal and interest, or interest only repayments

What can we help you with today? 

Buying Your First Home

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Buying Your Next House

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Refinance Your Home Loan

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Buying An Investment Property

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