National launches new interest-only variable home loan - 12 June 2002

The National has launched a new interest-only variable rate home loan that suits both property investors and owner-occupiers.

The new interest-only loan complements the National's existing interest-only mortgage products by providing a no frills, interest-only, variable rate loan.

The new loan offers a five-year interest-only period, after which it reverts to principal and interest.

"Property investors are able to maximise their negative gearing during the five year interest-only period, and owner-occupiers are able to preserve cash for other purposes rather than making principal repayments during the interest-only period," said the National's General Manager of Personal Financial Services, Mr Peter Flavel.

Customers looking for an interest-only, variable rate home loan will be able to take advantage of an extensive number of features including:

• The new loan is available to both investors and owner occupiers;
• A five year interest-only period enables property investors to maximise negative gearing during this period, or for owner-occupiers to utilise funds for other purposes such as renovations;
• Borrowers can pay surplus funds into the home loan with no penalty, and can access surplus funds via a redraw facility;
• There is no monthly service fee; and
• The interest rate is competitive at 6.06% (as at 10 June 2002).

Terms and conditions apply. Interested customers should contact any branch of the National or call 13 13 12.