It's now time to fix your rate at 6.85%p.a.*

Lock in to 6.85%p.a. for 12 months and prepay all your interest by 30 June 2009 and you may be able to take advantage of these great benefits:

Easier cash flow management – By prepaying now, you won’t need to worry about making any further interest payments on your margin loan until this time next year, allowing you to plan and manage your cash flow more effectively.

Lock in your interest rate for the next 12 months – By choosing to lock in the interest rate on your margin loan, you can lock in a rate that protects you from any future interest rate rises during that time.

Tax implications – when you borrow money to buy an asset that produces assessable income, you may know that the interest expense on the borrowing may be available as a tax deduction. But did you know that by pre-paying next year’s interest you may be able to bring forward the timing of that additional deduction to this Financial Year?

Here’s how:

Pay up to 12 months interest in advance before 30 June to be eligible for the potential tax deduction of the entire prepayment in the current Financial year
It is important to note that your ability to take advantage of this additional deduction is subject to the special pre-payment rules and you should seek professional tax advice to determine your eligibility.

Prepaying interest may provide an advantage if your income one year is higher than expected for the following year, perhaps due to one-off factors such as capital gains, bonuses or redundancy payments.

*Rates current as at 1 June 2009 and are subject to change. Loans are subject to the bank's current credit criteria. Fees and charges apply and full details of all applicable terms and conditions are available on request. This information is general only and does not take into account anyone's personal objectives, financial situation or needs. You should therefore consider its appropriateness having regard to these factors before acting on it. Individual financial and tax advice is recommended.