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Interest rates

We offer home loans with a range of interest rates, determined by our standard variable rate (the IBA Home Loan Rate), your individual circumstances and your 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.

Unlike banks, the interest we receive on your loan is not used to generate profits. It is reinvested to help enable us to assist more customers to obtain their new home. As such we review the IBA Home Loan Rate every month to make sure it is similar to the owner occupied rates available in the banking industry. The current rate is noted below.

IBA Home Loan Rate^
Variable home loan rate for owner occupied homes
^ Interest rates are effective as at 22 June 2024 and are subject to change at any time.


To help homebuyers and refinance customers on a low or moderate income achieve their home ownership goal, we give many of our home loan customers a discounted interest rate when their loan begins. This starting rate will stay low for a set period of time (the starting rate period), and then it will begin to increase each year (in March) until it reaches the IBA Home Loan Rate.

The interest rate you start on, the set period of time you stay on this starting rate and how much your interest rate increases by each year after the starting rate period, are determined by your income when you’re approved for an IBA home loan. Depending on your circumstances, it can take many years to reach the IBA Home Loan Rate.


Starting interest rates for home buyers and refinance customers^

Total gross income Starting interest rateIncremental rateStarting rate period
Up to $83,4872.54%0.25%24 months
$83,488 - $137,5083.54%0.25%12 months
$137,509 - $162,0634.54%0.25%12 months
$162,064 -
$245, 550
6.49 %N/AN/A

 Total gross income values, rates and minimum introductory periods are effective as at 22 June 2024 and are subject to change at any time.

The reason we increase towards the IBA Home Loan Rate gradually, is to give you time to adjust to making your home loan repayments and managing other bills and costs you may have as a homeowner. 

When your interest rate increases, this also means your home loan repayment increases. When this happens, we’ll let you know in writing before we make an increase to your interest rate and home loan repayment.

To help us to support more customers into home ownership, customers on higher incomes may be required to obtain part of their funds from another lender. These customers may receive an extended starting interest rate on their IBA loan of 3.54% capped for a minimum period of 3 years.