Loan 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 will be outlined in your loan agreement.

First home buyers may be eligible for a standard introductory interest rate 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 rate Incremental rate Minimum introductory period
Up to $43,290 1.00% 0.25%  24 months
 $43,291–$73,593  2.00% 0.25% 24 months
 $73,594–$121,212 3.00% 0.50% 12 months
^ Total gross income values, rates and minimum introductory periods are effective as at 1 August 2018 and are subject to change at any time.

On 1 January following the introductory period and 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 3.0% capped for a minimum period of 3 years.

Other loans generally receive the IBA Home Loan Rate. This includes housing loans to previous home owners, purchase of residential land, home improvement, refinance and property settlement and fee finance loans.

IBA will automatically adjust the interest rate on 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.

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

Reference interest rates
Description Interest 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 September 2016 and are subject to change at any time.


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