I have 3.5 years left on an IO loan (Bankwest). I'm looking to fix it for 3 years as they don't allow for partial periods. On the fixing contract they sent me, it says: "After the fixed interest rate period there will be 308 monthly repayments of principal and interest" So does this mean I effectively lose 6 months of IO? I'm now worried...I fixed 2 other loans - Macbank and AMP - under the same circumstances (just under 4 years remaining, but fixed for 3)...does this mean I've effectively shot myself in the foot and lost 6-9 months of IO in each loan? EDIT: Ok this is getting even more confusing. They sent me two contracts...I thought the second contract was just a copy of the first for my records but it isn't. The first one is called "3 Year Fixed Interest Home Loan Contract". The second one is called "3 Year Interest Only Reverting to Principal and Interest Repayments Loan Contract". Is this normal? Why did they send me that second one too?