Learn about RIC’s interest rates, including how and when they may change.
What you will learn:
- RIC interest rate features
- How the interest rate is determined
- How and when RIC interest rates may change
RIC interest rate features
All RIC loans have the same concessional variable interest rate. RIC loans are 5 years interest only repayments and then 5 years principal and interest (P&I) for the remainder of the ten-year term. You can choose to make repayments monthly, quarterly or half yearly to best suit your cash flow, with payments deducted on the first business day of the chosen cycle.
How the interest rate is determined
RIC interest rates are reviewed in line with the 10-year Government Bond rate, including administrative costs. Government Bonds are financial tools issued by the government to raise money. Investors purchase these bonds, effectively ‘lending’ money to the government. In return, the government commits to pay back the original amount that was borrowed plus interest. Bond rates are the interest rates that the government pays to investors who purchase these bonds. These Bond rates can go up and down for many reasons, including economic conditions, inflation and government policies.
RIC interest rates are determined by the Australian Government. RIC has no influence on the rate charged on loans and cannot negotiate lower interest rates for individual customers. The Australian Government does not make a profit on interest charged.
How and when RIC interest rates may change
The variable interest rate on RIC loans is reviewed every six months. They don’t necessarily change every six months, but if they do, changes will happen in February and August.
To view our current interest rates visit RIC loans.
If you have questions about variable interest rate, contact us.