FAQs

FAQs about the Macquarie Interest Prepayment Loan

Who can apply for an Interest Prepayment Loan?

To be eligible for an Interest Prepayment Loan:

  • You must have elected to fix and prepay interest on your Macquarie Investment Loan
  • You must be the same individual, company or trust borrower that holds the Investment Loan
  • You must not have an outstanding Interest Prepayment Loan on the same Investment Loan facility
  • You must pass our borrower assessment conditions, including a credit check

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What is the loan term?

The Interest Prepayment Loan has a term equal to the relevant interest prepayment period on your Investment Loan (up to 12 months).

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How are principal repayments calculated?

Your Interest Prepayment Loan is repayable monthly in arrears via principal and interest payments. Your principal repayments are calculated on a pro rata basis over the term of your Interest Prepayment Loan. At the end of each month, the required principal repayment will reduce the outstanding balance of your Interest Prepayment Loan such that, by maturity, the balance will reduce to zero.

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How are interest repayments calculated?

You can choose a fixed in arrears or variable in arrears interest rate on your Interest Prepayment Loan. Interest is calculated daily on the outstanding balance of your Interest Prepayment Loan and charged monthly. As the outstanding balance on your Interest Prepayment Loan will reduce over the term of your loan, your monthly interest charges should also reduce.

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