Interest prepaid loans. If you have an interest prepaid loan, we deduct the yearly advance interest from your transaction account for that loan on each interest prepayment date. We will tell you before the interest prepaid period ends. You’ll have two months to decide whether to continue with an interest prepaid period or switch to a variable rate period (this is called the election period). At the time we will give you an estimate of the yearly advance interest repayment for the next interest prepaid period, based on the interest prepaid rate we offer at the time. This estimate may change between the time we notify you and the end of the election period. If you choose an interest prepaid period, we will confirm the yearly advance interest repayment before the interest prepayment date. Reverting to variable rate You can have up to five consecutive interest prepaid periods. At the end of the fifth period your loan reverts to a variable rate investment home loan with the annual percentage rate stated in the Schedule. You must then start making principal and interest repayments in accordance with the Schedule. Your loan will also revert if: • you don’t tell us you want another interest prepaid period within the election period; or • you don’t pay the yearly advance interest repayment when it’s due (e.g., because there’s not enough money in your account on that day).
