IMPORTANT INFORMATION FOR THE END OF FINANCIAL YEAR
The end of June, and therefore the end of the financial year, is fast approaching so here is Suncorp Margin Lending’s quick reference guide to some questions you may have right about now:
- How can loans be fixed before the end of financial year?
- What are important cut off dates and times to remember?
- New Loan Applications
- Managed Fund investment applications
- Managed Fund Standard Transfer forms
- Share Lodgement and Releases
- Refinances
- Fixed Loan Prepayment Requests
- When will my fixed loan interest be charged?
- Where can I get confirmation that my fixed loan form has been received?
- What is compounding interest?
1. How can loans be fixed before the end of financial year?
Please complete the Fixed Rate Loan Interest Prepayment Request and fax it to 1300 305 499 or post it to Suncorp Margin Lending, Reply Paid 1877 Royal Exchange NSW 1225.
At this time of year a high volume of these requests are received so to avoid delays in processing, we recommend existing clients submit their requests by Friday 26 June 2009.
2. What are important cut off dates and times to remember?
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New Loan Applications
To establish a margin loan before the end of the financial year please return a completed application form by the dates below:
Trust applications - Monday 15 June 2009
Company applications - Monday 15 June 2009
Individual and Joint applications - Monday 22 June 2009Don’t forget Suncorp Margin Lending makes opening a margin loan even easier with an online application form.
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Managed Fund applications
Requests for new Managed Funds Investments received by the cut off time, 11am EST/EDST, will be sent to the fund manager the same day for processing. Requests will be processed up until 11am Tuesday 30 June. Please consider interstate fund managers & postage times to ensure your application can be forwarded and arrive there prior to Tuesday 30 June 2009.
- Managed Fund Standard Transfer forms
Managed Fund Standard Transfers (i.e bringing existing Managed Funds to the loan to be used as security) will normally be processed within 48-72 hours (dependant on stamp duty requirements) of receipt of the completed form and/or application. These will be forwarded to the appropriate fund manager for completion of processing.
It is important to note that most fund managers receive high volumes of these requests over the June period and turnaround times can be up to one month or more depending on the fund manager.
To download the Managed Fund Standard Transfer form please click here.
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Share Lodgements and Releases
Lodgement requests can be processed within 24 hours, dependant on submission before 11am EST/EDST, correct details provided and prompt turnaround from the broker involved. Lodgements and releases will be processed up until 11am Tuesday 30 June.
To download the relevant Transfer form please click here
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Refinances
Refinances to Suncorp will be processed up until Monday 22 June 2009. However, different cut off dates may apply for different margin lenders. To ensure your refinance request is processed before the end of the financial year we recommend you check cut off dates with the other margin lenders involved with your refinance request.
To download the Refinance Authority form please click here
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Fixed Rate Loan Prepayment Requests
Payments for rolling over an existing fixed loan must be received by the maturity date of the current loan.
At this time of year we receive a high volume of these requests. So to avoid delays in processing please submit your request as early as possible.
3. When will my fixed loan interest be charged?
Interest payments will be charged on the loan start date. However, cheques and direct debits may not appear on your bank statement until on, or after this date.
4. Where can I get confirmation that my fixed loan form has been received?
Your fixed loan start date will be scheduled into our system soon after receipt of your form and can be viewed on Internet Account Access at www.suncorpmarginlending.com.au on the ‘Total Loans Outstanding’ page. Otherwise, please contact the Account Management Team on 1800 805 972 between 8am and 6pm (EST/EDST) Monday to Friday.
5. What is compounding interest?
Compounding interest occurs when interest is charged on the interest for the fixed loan, and is then added to the fixed loan balance.
Choosing compounding interest means the interest charged is more than if you choose to pay interest by other methods (such as prepaid interest), as you are nominating to pay “interest on interest”.
Examples of compounding interest
Example 1|
Jody would like to fix a loan amount of $20,000 and wants to add the compounded interest to this amount. Jody would choose option 1 on the form, and her fixed loan amount and interest would look like this: Principal fixed loan amount = $20,000 |
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John would like the total amount of the fixed loan and the compounded interest to equal $20,000 for the year. John would choose option 2 on the form, and his fixed loan amount and interest would look like this: Principal fixed loan amount = $18,000 |
