When you buy or build a home, IBA will require that you contribute some money toward the purchase price - your deposit. We have lower deposit requirements than commercial home lenders.
The minimum deposit requirement may depend on your income level, however IBA also requires that you contribute as much of your savings as possible towards the purchase and costs.
The table below shows the minimum deposits for different income levels.
|Minimum deposit required for home buyers^|
|Total gross income||Minimum deposit amount|
|Up to $78,234||$1,500|
|$128,857–$151, 866||3% of purchase price|
|$151,867-$230, 100||5% of purchase price|
^Total gross income values and deposit amounts are effective as at 1 December 2022 and are subject to change at any time.
Previous homeowners must contribute any remaining proceeds from a recent sale of their previous home.
|Minimum deposit required for other IBA loan products|
|Loan product||Minimum deposit amount^|
|Purchase of residential land||5% of purchase price or $10,000 (whichever is the lesser)|
|Home improvement or property settlement||No cash deposit is required, but you must hold at least 5% equity in the home|
|Refinance||No cash deposit is required, but you must hold at least 10% equity in the home|
|^Minimum deposits amounts are effective as at 24 April 2023 and are subject to change at any time.|
IBA does not have any fees or charges when you apply for a home loan, but when you buy or build a home there are other costs you must cover.
Each state government or territory has fees and charges for the purchase of a home or vacant land.
Stamp duty – this cost will depend on the purchase price of you home or vacant land. Some homebuyers may be eligible for a stamp duty rebate or exemption.
Transfer Fee – some states and territories charge a fee for the transfer of property from one person to another. The person buying the home must pay this cost. The amount can vary and may be calculated based on the purchase price.
Mortgage registration – the land titles office in each state/territory charges a fee for a mortgage to be registered to the property title.
If you are a first home buyer, you may be eligible for a First Home Owner Grant (FHOG), which can assist with the costs of buying or building a home.
Go to the Revenue Office website in your state/territory to learn more about government charges, rebates and exemptions, and FHOG.
You can calculate government charge and the amount of FHOG (if eligible) using this Stamp Duty Calculator.
Valuation fee – during the home loan process, IBA will order a valuation report for the property you are seeking to buy, from a qualified valuation company. If you are building a home, there may be additional fees for progress inspections throughout the construction period.
Building inspection – IBA requires customers to arrange a building inspector to go through the property and provide a report on any defects or maintenance items.
Pest inspection – IBA requires customers to arrange a pest inspection report, to identify any pest infestation in the property that could affect the structure of the home.
Building Insurance - IBA requires you to insure your home against losses. If you are building a home, check that your builder has their own insurance in place before construction starts.
There may be other property reports you need to obtain prior to taking on home ownership, for example, strata or body corporate reports, engineering or structural reports.
You will need to source a conveyancer or solicitor to assist you with the property settlement. Ask your solicitor, conveyancer or settlement agent to give you a written estimate. To find solicitors or conveyancers in your area, contact your local Law Society or the Australian Institute of Conveyancers.
Conveyancing fees and charges may include the costs of the settlement, undertaking any required property searches and inspections, and addition settlement cost may include any adjustments to property taxes and council rates that you may need to cover on settlement day.
IBA does not require you to cover the cost of lender’s mortgage insurance.
You will need to set aside some money to cover additional costs after settlement, including moving costs, connecting utilities, such as electricity and phone, redirecting mail, and possibly carpet and other cleaning costs.