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National Australia Bank today announced a special offer on fixed rate, interest only investment loans with interest paid in advance or in arrears.
The special offer applies to National Personal/Residential Investment Fixed Rate Interest Only Loans approved and drawn by 30 June 2001. The offer is designed for personal and business investors, who may be entitled to tax benefits if they pay interest in advance by 30 June.*
The new rates include 6.09% pa - a reduction of 0.20% - on interest-in-advance loans, fixed for terms of one and two years. (All loans must be secured by a registered first mortgage over residential property).
The latest interest rate reduction comes on top of a series of cuts in recent months in line with the easing of official interest rates.
The National's General Manager, Personal Financial Services, Mr Ken Hodgson, said fixed rate, interest only loans with interest payment options were popular with personal and business investors at this time of year.
"This type of loan offers investors a simple way to bring forward or defer costs and provides flexibility with tax planning. Fixed rates are generally preferred by investors because they provide certainty of cost. This year we have given investors an additional incentive to fix by offering exceptionally low rates over terms of up to five years."
Loan funds can be used for any worthwhile investment, such as residential property, shares and unit trusts. Customers can borrow from a minimum of $50,000, with no specified maximum, and have the choice of paying interest annually in advance or monthly in arrears.
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Personal/Residential Investment Fixed Rate Interest Only Special Offer
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Term
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1 Year
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2 year
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3 year
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4 year
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5 year
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| Int in Adv |
6.09 (-0.20) |
6.09 (-0.20) |
6.19 (n/c) |
6.39 (-0.10) |
6.39 (-0.10) |
| Int in Arr |
6.39 (-0.10) |
6.39 (-0.10) |
6.39 (n/c) |
6.59 (-0.10) |
6.59 (-0.10) |
(Reduction from standard rates indicated in brackets. Rates effective 7 May 2001 and expire on 2 July 2001.)
*The National does not provide tax advice. The information in this media release is of a general nature and is for information purposes only. The National recommends that borrowers seek independent tax and legal advice on their specific circumstances.
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