Interest rates

We offer housing loans at a range of interest rates, depending on your individual circumstances and loan requirements. Details of the interest rate applicable to your home loan, and how it may change during the term of your loan, will be outlined in your loan agreement.

First home buyers may be eligible for a standard introductory interest rate loan which has a low commencing interest rate, capped for a minimum introductory period. The table below shows the commencing interest rates and minimum introductory period that may be available depending on your income.

Standard introductory interest rates for first home buyers^
Total gross incomeCommencing interest rateIncremental rateMinimum introductory period
Up to $77,3942.14%0.25% 24 months
$77,395–$127,4733.14%0.25%12 months
$127,474–$150,2363.64%0.25%12 months
^ Total gross income values, rates and minimum introductory periods are effective as at 1 December  2020 and are subject to change at any time.



On 1 March following the end of the introductory period and on 1 March each year thereafter, the capped rate will increase by an incremental rate (also shown in the table above). The interest rate on your loan will be set to the lesser of the capped rate and the IBA Home Loan Rate.

Customers on higher incomes will be required to obtain part of their funds from another lender. These customers may receive an extended introductory interest rate on their IBA loan of 3.14% capped for a minimum period of 3 years.

Your interest rate may change during the life of your loan in accordance with your loan agreement. For example, your interest rate may change when there is a change to the IBA Home Loan Rate or other rate applicable to your loan.

Our interest rates are set at an average of the standard variable rates set by other lenders.

The IBA Home Loan Rate is a true rate, as we do not charge fees that mainstream lenders may charge, such as:

  • Establishment fees
  • Lender Mortgage Insurance (LMI)
  • Annual fees

The IBA Home Loan Rate was lowered to 4.14% on 1 December 2020. We review our interest rates monthly and adjust them with reference to the average of a selection of mainstream lenders when major lenders move their rates by at least 0.2%.

The following table shows the current reference interest rates that may be applicable for determining the interest rate for your home loan.

Reference interest rates
DescriptionInterest rate^
IBA Home Loan Rate
Variable home loan rate for owner occupied homes
Leased home loan rate
Variable home loan rate for non-occupied homes.
^ Interest rates are effective as at 1 December 2020 and are subject to change at any time.