Interest rates

We offer housing loans at a range of interest rates, depending on our standard 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.

We set our standard  variable interest rate by comparison to the average standard variable rates set by a sample of other lenders. We review our rates monthly and adjust them when a proportion of major lenders move their rates by at least 0.2%.

We offer introductory rates lower than our standard rate to customers on lower incomes and first home buyers.

We also offer the following assistance to help our customers to make home ownership more affordable:

  • Lower deposit requirements than many mainstream lenders
  • No Lenders Mortgage Insurance (LMI) required
  • No loan establishment costs
  • No ongoing fees for your loan
  • Longer loan terms than offered by mainstream lenders

Also, unlike mainstream lenders, 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.

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 income Commencing interest rateIncremental rateMinimum introductory period
Up to $75,6701.14%0.25%24 months
$75, 671 - $124,6342.14%0.25%12 months
$124,635 - $146,8903.14%0.25%12 months
$146,891 -
$222, 560
4.14 %N/AN/A

 ^ Total gross income values, rates and minimum introductory periods are effective as at 3 September 2021 and are subject to change at any time.

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 introductory interest rate on their IBA loan of 2.14% capped for a minimum period of 3 years.

Ongoing interest rate reviews

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 IBA’s standard variable rate (the IBA Home Loan Rate) or other rate applicable to your loan.

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.

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 3 September 2021 and are subject to change at any time.