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Interest Only Investment Loan

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An Interest Only loan suited to investors with the option of a variable or fixed interest rate.

To safeguard against interest rate increases you can fix your interest rate for a period of time. This gives you the certainty of knowing what your repayments will be during this period and the flexibility of repaying your loan without any penalty after the fixed interest rate period. You can also select an Interest Only option for 1 - 5 or 10 years, freeing up funds that would otherwise contribute to principal repayments for investment purposes or saving.

Main Features

Monthly repayments.
Additional repayments accepted.¹
Interest Only available.²
1-5 year Fixed Interest Rate option.
Fixed Rate Lock available for 1-3 year terms only.³
Redraw available ($500 minimum).
No Early Repayment penalties.
Break Cost Fee.⁴
$50,000 minimum loan amount.
No maximum loan amount.
30 year maximum loan term.

Interest

Calculated daily and charged monthly in arrears.
The interest rate can be fixed for periods from 1 - 5 years and will automatically convert to a variable interest rate at the end of the fixed period.

Repayments

Principal & interest repayments.
Interest Only repayments are also available for 1 - 5 and 10 year terms.

Loan to Value Ratio (LVR)

Maximum 95% of the value of the property (Lenders Mortgage Insurance is required for loans of more than 80% of the value of the property).

Security

First mortgage over investment property.

Splitting Your Loan

Victoria Teachers Credit Union offers the flexibility of splitting your loan into Variable and Fixed Interest Rate portions or into two or more different loan products.

Maximum of $5,000 in extra repayments during the fixed interest rate period. Any funds paid in excess of $5,000 will incur a Break Cost Fee.
Available for 1 – 5 and 10 year terms. Monthly repayments only during interest only term.
Maximum duration of lock 60 days. Maximum loan amount $500,000. Fee is 0.15% of Loan amount.
Fee only applies during fixed interest rate period.

Rates & Fees

Variable Interest Rate (p.a.)¹	6.79%
Comparison Rate* (p.a.)²	6.83%
View Fixed Interest Rates
Establishment Fee	$600
Administration Fee	$0
Redraw Fees	$0

Terms and Conditions

Part A - Product Information
Part B - Fees and Charges
Part C - Interest Rates

Interest Rates effective 20 December 2011. Interest is calculated daily. Interest rates are per annum, current at the time of printing and are subject to change without notice.
Comparison rate calculated on a secured loan amount of $150,000 for a term of 25 years.
WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees and other loan amounts might result in a different comparison rate.

*Comparison rates for first home buyers will differ to those outlined above.

Calculators

	Borrowing Power Find out how much you can expect to borrow based on your current salary and existing financial commitments.
	Loan Repayments Work out what your minimum weekly, fortnightly or monthly loan repayments would be for any borrowed amount.
	Stamp Duty and Government Fees Stamp duty and Government fees add significantly to the cost of buying a property. Find out how much it will cost in your state or territory.
	Extra Repayments Calculate how much time and interest you can save by paying more than the minimum repayment.
	Lump Sum Repayments Calculate the time and interest you can save by paying a lump sum off your loan.
	Loan Comparison Compare two loans and calculate the savings.