Farm First Rapid Repay
An all-in-one transaction and loan account that reduces interest.
- Minimise interest costs by paying your income and spare cash directly into your loan account
- Your limit reduces each month, to ensure your debt load is reducing
- It’s easy to pay all your working expenses from the account
More detail
Use your income to minimise interest
By paying all of your income into your Farm First Rapid Repay1 loan account2, you can decrease the daily loan balance and minimise interest payments. Leaving as much money as you can in your account means you’ll pay less interest. Over the life of your loan, you could save thousands. When you need to pay a bill or withdraw cash, the account can be used for payments - just like a cheque account.
Know that the loan will be gone one day
Each month the limit on your Farm First Rapid Repay account reduces, which is called a ‘safety limit’. It means that you are definitely heading towards total loan repayment within the agreed term. The safety limit can be set to reduce over any term up to 15 years.
How the Browns saved nine years and $195,395
This example will help you to understand how Farm First Rapid Repay works.
| Farm loan | $550,000 |
| Gross annual farm income | $300,000 |
| Savings account balance | $4,000 |
| Annual farm working expenses | $142,450 |
| Other annual expenses | $52,000 |
Assuming a stable interest rate of 6.5%, the Browns could repay their farm loan in just over six years – that’s almost nine years faster than a standard table loan. Even better, they’d pay just $116,889 in interest, a saving of $195,395. To achieve this remarkable result they simply need to put their entire farm income and $4,000 savings straight into their Farm First Rapid Repay account.
| Total interest using Farm First Rapid Repay | $116,889 |
| Total interest using a standard variable loan | $312,284 |
| Interest saved | $195,395 |
Pay your bills and other expenses with ease
Your loan account works just like a regular transaction account3 when you need it to. Use cheques, ATMs, EFTPOS, telephone and internet banking to pay your farm working expenses.
Variable rate interest
Interest is calculated daily and charged at the current variable rate.
It can work in combination with a fixed rate loan
You can use a Farm First Rapid Repay Loan in combination with a fixed rate loan as long as you have a third or more of your farm borrowing in the rapid repay loan.
Statements put you in the picture
You can choose to receive statements every week, fortnight or month. Every statement will show your current loan balance in relation to your safety limit, recent transactions and next month’s safety limit reduction.
