Loan type icon

What is interest in advance?

Interest in advance is an option that may be available on fixed interest and interest only investment loans.

You can fix the interest rate (usually at an additional discount) on an investment loan for the following 12 months. Therefore, you pay the amount that would usually accrue throughout that year in one upfront payment.

If you pre-pay the following year's interest, you can also claim it as a tax deduction in the present year.

Related Questions