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Ord Minnett Fix & Prepay

June is the perfect time to consider locking in a discounted interest rate and taking advantage of the potential tax benefits of a fixed and prepaid margin loan.

Why fix and prepay a margin loan before June 30?

Competitive rate

Take advantage of discounted interest rates for fixed rate loans.

Tax effective

Interest paid in advance, up to 12 months, may be tax deductible this financial year.

Choice of terms

Select the fixed term that best suits your needs - 6 months to 5 years.

Rates

Margin Loan

Balance tier 12 month fixed rate paid in advance
$0 - $99,999 4.99%
$100,000 - $249,999 4.59%
$250,000 - $499,999 4.29%
$500,000 - $749,999 3.99%
$750,000 - $999,999 3.89%
$1m - $4,999,999 3.69%
$5m + 2.99%

 

Important Dates

Suggested final times and dates for requests to be processed before the end of this financial year:

1.00pm Australia Eastern Standard Time (AEST), Wednesday 30 June 2021.

We must receive your application and interest payment in cleared funds by no later than this time, so please consider the timing of your payment method.

Applications are subject to our approval and lending criteria may apply.

Close of business Friday 18 June 2021.

Applications are subject to our approval and lending criteria may apply.

Changes to your nominated bank account details must be received by Wednesday 23 June 2021, or 2 days prior to your nominated direct debit date, whichever date comes first.
Nomination for direct debit arrangements must be received by 1.00pm Wednesday 30 June 2021. Nominations that are received after 1.00pm on a Friday in June or Wednesday 30 June 2021 will be processed on the next business day.

Acknowledgements

By submitting a Fix and Prepay Interest request, each Borrower acknowledges and agrees that:

  • All quotes for a Fixed Rate are indicative and only valid for the time at which they are given. Current Fixed Rates are available from the Lender. The Fixed Rate applicable to any Fixed Rate loan will be as agreed by the Lender in the Fix and Prepay Interest request for the Fixed Term.
  • No member or Persons of the Lender, including the Bendigo and Adelaide Bank Group accepts liability for any loss or other consequence(s) of not fully receiving or acting on any Fix and Prepay Interest request, instruction or payment within any applicable Fixed Term period.
  • An instruction to capitalise any interest calculated at the Fixed Rate on the amount agreed for the Fixed Rate Loan that in the opinion of the Lender, may result in a breach of a maximum Gearing Ratio, the Lender may decline the Fix and Prepay Interest request.
  • Any interest paid under a Fix and Prepay Interest request is not refundable and cannot carry over to future periods or any other Fixed Rate or Variable Rate loan under a Margin Loan Facility.
  • During the Fixed Term, interest is calculated at the Fixed Rate on the amount equal to the Fixed Rate Laon as indicated on the Fix and Prepay Interest request accepted by the Lender.
  • Unless a Target Facility Balance has been established for any Fixed Rate Loan, the Lender will not pay interest on any credit balance, including any amount not utilised under any Fixed Rate Loan.
  • Any pre-existing Fixed Rate Loan will continue to operate to the end of the Fixed Term. New Fixed Rate Loans will operate from the commencement of the new Fixed Term. Where a Target Facility Balance has been established, the balance will reflect the new Fixed Rate Loan amount.

Before submitting a Fix and Prepay Interest request, it is recommended all Borrowers seek independent financial advice and consider the following points:

  • When the Lender accepts a Fix and Prepay Interest request, it is not possible to change or cancel the Fixed Rate Loan once it has commenced.
  • Unless the Lender agrees, a Fixed Rate Loan cannot be repaid, terminated or have the method of how interest is paid during the term changed before the end of the Fixed Term.
  • If the Lender agrees to any change to the Fixed Rate Loan, it may impose additional terms and conditions including without limitation the payment of any Break Costs. Any interest paid under a Fix and Prepay Interest request, is not refundable as a result of the Lender agreeing to any change to the Fixed Rate Loan.
  • After the Fixed Term, any loan that is not subject to a new Fixed Rate will be charged interest at the Variable Rate.

Ready to fix and prepay?

Save time and apply online. Alternatively, contact your Relationship Manager Jessica Martinez between 8:30am - 5:30pm AEST, Mon-Fri on 02 8282 8251

Learn more - benefits of fixing and prepaying interest

The lead up to the end of the financial year often signals a time for investors to take stock of their holdings, consider their tax management strategies and plan for the year ahead.

For investors with a margin loan, June is the perfect time to consider locking in a discounted rate and taking advantage of the potential tax benefits of a fixed and prepaid loan.

To learn more about the benefits of fixing and prepaying interest on a margin loan, read this case study.

FAQs

A Fixed and Prepaid rate means you will pay your interest in advance at the start of the Fixed Term. A Fixed Rate does not change during the agreed Fixed Term. This means that if Variable Rates increase or decrease, the Fixed Rate applied to your Fixed Rate Loan will not change during the Fixed Term.

The minimum Fixed Rate Loan amount is $20,000 for the Margin Loan and multiples of $1,000 thereafter. The maximum amount you can apply for will primarily depend on your Credit Limit. Please ensure your Credit Limit can accommodate the Fixed Rate Loan you intend to apply for. Applications are subject to our approval.

You can nominate a start date as any business day during June up to and including 1 July 2021. You can choose any Fixed Term up to 5 years, with 6-months or 1 year fixed interest paid in advance. As an example, if you apply to start a 1-year Fixed Rate Loan on 24 June 2021 the Fixed Rate Loan will expire on 23 June 2022. If you are rolling over your existing Fixed Rate Loan, please indicate the start date as the day after the expiry of your current Loan. If you do not indicate a start date, we will use the start date after the expiry of your current loan or on 30 June. Loans commencing on 1 July 2021 will have interest charged on 30 June 2021, otherwise interest will be charged on the start date of the Loan. 

Fixed and Prepaid Interest rates are published on the website in June 2021 and are subject to change at any time until your Fixed and Prepay request is accepted by us.

You can pay up to 12 months of interest at the start of the Fixed Rate Loan. This is called prepaying interest. Interest will be charged to your facility to ensure your Fixed Rate Loan starts on the date requested. Or if you choose to make a cleared payment to cover the interest charged, funds must be available in your Margin Loan bank account before the start date.

Select the Apply now button, log into Leverage Online and select Fix and Prepay from the navigation. Alternatively, call your Relationship Manager on 02 8282 8251 between 8:30am - 5:30pm AEST, Mon-Fri and fix over the phone.

Call 02 8282 8251 between 8:30am - 5:30pm AEST, Mon-Fri, and your Relationship Manager will assist with your request.

We recommend submitting your Fix and Prepay Interest request by 1.00pm AEST on 30 June 2021 to be confident of having it processed on 30 June 2021. Applications and requests are subject to our approval and lending criteria may apply.

Direct debit

You can instruct us to debit your Nominated Bank Account that has an existing general direct debit arrangement with us. If you do not have an existing direct debit arrangement, please complete the Direct Debit Request form or ask your financial adviser. Please ensure that you have the required cleared funds available in your nominated bank account before the start date of your fixed rate loan.

Direct credit

You may be able to use your electronic banking arrangements to transfer a payment covering the interest payable to your margin loan facility. The payment should be made to the BSB and Account Number linked to your loan account. Please contact your Relationship Manager on 02 8282 8251 if you are unsure about these account details. If you choose this option, select Capitalise interest in Section 3 of your application.

Capitalise interest to your facility

This option is available to investors who have sufficient borrowing capacity and Credit Limit at the start of the Fixed Term. Interest will be capitalised to the variable portion of your facility on the day before the Fixed Rate Loan starts. Capitalising interest to your facility is subject to our approval. If capitalising interest to your facility is expected to cause a Margin Call or put your facility into the Buffer, then we may not accept your request for a Fixed Rate Loan. Please ensure you have sufficient borrowing capacity on the day before the Fixed Rate Loan starts.

BPAY®

The Biller Code and Customer Reference are available on the Fix and Prepay Interest communication we will email to you or by calling 02 8282 8251. If you choose this option, select Capitalise interest in section 3 of the application.

® Registered to BPAY Pty Ltd ABN 69 079 137 518.

Note: Once your application is accepted by us, you cannot withdraw your request. Interest paid in advance is not refundable and may not carry over to future periods.

 

When you begin a Fixed Rate Loan, funds will be made available to you to invest from the start of the Fixed Term. Many borrowers tend to progressively acquire their investment portfolio and/or sell their investments prior to the expiry of the Fixed Rate Loan.

This means that at certain times during the Fixed Term, part of the Fixed Rate Loan may be undrawn.

We can help you manage any undrawn amount of the Fixed Rate Loan by sweeping funds between your Loan Account and an acceptable CMA. Typically, borrowers nominate a Target Facility Balance equal to their Fixed Rate Loan.
Where the total amount borrowed through your loan account - both Fixed Rate and Variable Rate Loans - is less than your Target Facility Balance, we will arrange to automatically sweep any excess to a CMA established on your behalf and held as part of your Secured Portfolio. Where the total amount borrowed in your Loan Account is greater than the Target Facility Balance, we will automatically sweep the funds back from the CMA and into your Loan Account.

The aim is to maintain the total amount borrowed around your nominated Target Facility Balance.

To check whether your Loan Account is set-up for this, please call your Relationship Manager on 02 8282 8251.

Once we accept your Fix and Prepay Interest request, you may not change or withdraw your request. Generally, you cannot repay or terminate a Fixed Rate Loan or change how interest is paid during the Fixed Term. If we agree to withdraw, change, break or cancel your Fixed Rate Loan, then any interest paid in advance is not refundable and cannot carry over to future periods. It is recommended that you talk to your financial adviser before deciding to take any action.

Your Fixed Rate Loan will revert to a Variable Rate unless you request for a new Fixed Rate Loan.

The Ord Minnett Margin Loan is issued by Leveraged Equities Limited (ABN 26 051 629 282 AFSL 360118) as Lender and as a subsidiary of Bendigo and Adelaide Bank Limited (ABN 11 068 049 178 AFSL 237879). Unless otherwise specified, references to ‘we’, ‘us’ or ‘our’ in this website means Leveraged Equities Limited (ABN 26 051 629 282, AFSL 360118) (‘LE’) in:

  • its capacity as lender for the Margin Loan; or
  • its capacity as trustee of any trust related to the Margin Loan; or
  • its capacity as the manager of a Margin Loan.

The information contained on these pages is correct as at 1 June 2021 and is subject to change. The content has been prepared by LE. No other party named or identified in this website or any of their respective bodies’ corporate are responsible for the preparation or content of this website. These pages contain general advice only in relation to margin lending. They have not been prepared with reference to the investment needs of any particular investor and should not be relied on as such. ˆThis is not intended as tax advice, please consult a registered tax agent.

You should read and consider the relevant Product Disclosure Statement (PDS), Product Guide, including the terms and conditions before deciding whether to apply for or continue with a loan. To obtain a copy of the PDS and Product Guide visit www.leveraged.com.au/ords, call 02 8282 8251 or contact your financial adviser.

We recommend that investors seek their own independent financial, legal and taxation advice before making any decision about investing or taking any action in relation to the material on these web pages. Lending and other approval criteria on the risks and suitability of this product may apply. Interest rates are indicative and are subject to change at any time. Fees, charges and government taxes may be payable. Not suitable for a self-managed superannuation fund.

LE is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Cth). Any obligation of LE or money held in a facility are not deposits with or other liabilities of Bendigo and Adelaide Bank Limited (ABN 11 068 049 178, AFSL 237879), any other entity in the Bendigo and Adelaide Bank Group, any other deposit-taking institution or any other entity named in any document related to the Leveraged Equities Margin Loan.

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