Deposits, fees and charges
Interest Rates
Recent media coverage regarding the impact of the US sub- prime collapse on the Australian home mortgage market has highlighted low and no doc home lending as being particularly vulnerable to upward interest rates movements.
IBA Homes is not a low or no doc lender. IBA home loan products are designed to protect home buyers from the impact of rapid interest rate movements. Standard IBA home loans have a commencing interest rate of 4.5%, which increases by 0.5% annually up to the IBA Home Loan Rate. The IBA Home Loan Rate has risen in line with official interest rates and is now 1.37 % below the Commonwealth Bank's standard variable rate for owner occupied home loans.
Deposit
IBA Homes has a standard minimum deposit requirement of $3,000 or 5% of the purchase price (whichever is the lesser). Higher deposits may be required where applicants have the capacity to contribute more. Additional funds should be allowed for valuation, stamp duty, legal costs and insurance costs associated with buying a property.
First home buyers may be eligible for the First Home Owner Grant (FHOG) of $7,000 which can assist to meet deposit and related costs associated with home purchase.
IBA Fees and Charges
IBA Homes does not charge a loan application fee or a professional fee for mortgage preparation. However, making a late loan repayment may incur a late payment administration fee of $20. A mortgage discharge fee of $300 is charged at the completion of the loan term.
