Split Loan Process

This table outlines the basic activities and responsibilities of the Applicant, IBA and Other Lender under the Split Loan process.

If you have any questions please phone us and follow the prompts to speak to a staff member.

Stage	Who’s responsible	Action required
Invitation	IBA	Clients are invited to apply for a loan and are provided with: 1. Letter of invite 2. Loan application form
	Applicant	Applicants complete loan application form and provide all necessary supporting documentation, including income details, privacy consent etc
Application	IBA	Upon receipt, IBA Lending Officer assesses application to determine what assistance can be provided The IBA Lending Officer will determine if the Applicant’s financial situation is such that they are eligible for full or partial funding from IBA
Proceed to purchase	IBA	If eligible for assistance, Applicants are provided with formal notification of the conditions upon which any IBA loan offer may be made, including the requirement that some funds will be required to be sought from a lender other than IBA
	Applicant	Application to be lodged with a lender other than IBA to secure the balance of funds required to purchase their home Make preliminary enquiries to engage legal representation
	Other lender	Assess application and determine if assistance can be provided on the basis of a first mortgage, with IBA as second mortgagee
Pending approval	Applicant	Applicants select home of their choice and provide copies of contracts to both lenders (via agent or legal representative)
	IBA	Finalise assessment of application and provide formal loan approval As part of the loan approval process, IBA will: 1. Process First Home Owner Grant application 2. Obtain a Valuation report satisfactory to IBA 3. Obtain Pest and Building reports satisfactory to IBA Issue loan approval documentation to Applicant
	Other lender	Finalise assessment of application and provide formal loan approval Obtain any reports necessary under lending requirements Issue loan approval documentation to Applicant Where practical, IBA is willing to share reports with other lender to reduce costs to Applicant
Settlement	IBA	Liaise with other lender to establish Priority Agreement Instruct Australian Government Solicitor to prepare IBA mortgage documents
	Other lender	Liaise with IBA to establish Priority Agreement Complete internal processes for production and execution of mortgage documents
	Applicant	Sign necessary documentation and return to lenders (via legal representative)