How much deposit do I need?At IMB, you will need at least 10% of your property value saved as a home loan deposit – and you will need to factor in costs like stamp duty, conveyancer fees and any other miscellaneous costs like removalists. In general, rates can be more competitive the larger your deposit is against the purchase value. Check out IMB’s home loan rates and packages. Importantly, any loan with a deposit less than 20% of the property value will require Lender's Mortgage Insurance (LMI) Insures the lending institution for any losses it incurs should the borrower default and the property needs to be sold. LMI is paid for by the borrower if they have a less-than-20% deposit of the purchase price. LMI can cost several tens of thousands of dollars, and increases exponentially the more you borrow..
Getting approval for your construction loanTo obtain unconditional approval for your construction loan, in addition to our standard criteria, you will also need to provide a fixed price tender or building contract. This needs to be:
Before building commencesOnce your loan is unconditionally approved, before your builder can start you will need to provide us with:
Please note, if the amount noted on the building contract is different to the fixed priced tender, your loan application may need to be reassessed. An amendment fee may be payable. After receiving the signed contract, we will send an “Authority to Commence Construction” letter to you and your builder. This letter allows your builder to commence the construction of your new home. TIP: You are able to can check validity of the Builder’s Licence details through state government websites online. We recommend that you do this before entering into any building contracts.
Building process and progress paymentsIf your home loan approval was based on you making your own financial contribution, please note you will need to make this payment first. This needs to be made before we will start releasing any progress payments from your loan. You will also need to provide us with a copy of the receipt for this payment from your builder. If you are a First Home Buyer, please keep in mind that the First Home Owners Grant is only paid once the slab stage is complete. When construction of your new home has commenced you will receive the first invoice for payment from your builder. Provided that you are satisfied with the work which has been completed, forward a copy of this invoice along with the completed first progress payment request form (signed by you and all other borrowers) through to us via this email address: construction@imb.com.au. Upon receipt of the builder’s invoice and form, we will arrange for a progress inspection by one of our independent valuers. This valuation helps us to ensure that work is progressing in line with your building contract. This inspection can take on average around 5 business days to complete, depending on where your property is located. Once the valuation is received, we will assess the request and forward payment to your builder as per the payment instructions. If we are unable to make the payment, we will contact you to discuss. The same process will be followed for all progress payments until your home is complete.
Variations to the building contractBuilding contracts can sometimes change as you add, remove or tweak some aspects of the home after construction has commenced; for example, you decide upgrade your kitchen. When this happens, you will normally see this additional charge noted on your builder’s invoice. It is important that you have sufficient funds in either your own savings or within your loan amount to cover this extra cost.
Finalising constructionWhen it comes time to finalise your last progress payment request we will also need:
Important Information: |
How to get a construction loan in 3 simple steps
Understand the process
Building a home can feel like an enormous process. Check out our guide on the construction loan process to take you from “I wish” to “I’m home”.
Apply for a home loan
Book a time to speak with an IMB Bank home loan expert or apply for a home loan online.
Loan approved
Get unconditional approval so you can start building with confidence.
How we can help you |
140 years of giving home loans
We have been helping people build homes and achieve their financial goals since 1880.
We can come to you
Our mobile lenders are on standby ready to come to you to discuss how we can help you start building a home. |
Dedicated local customer service
As a mutual bank, our members are our shareholders, and we strive to deliver them the best service, value and innovations.
Available anywhere in Australia
Wherever you are in Australia, our team of home loan specialists can help you start building sooner. |
“I’ve been a member with IMB since my first job at Coles and have always loved the personal service,” says Megan Pracy. As newlyweds, she and husband Matthew (along with lots of help from daughter Valetta) worked with IMB to save their deposit, navigate their entitlements and secure their loan. “When an opportunity to buy our first home, I called Lauren Oakes.” Then Camden Branch Manager (and now Menai Branch Manager), Lauren had helped the couple’s preparation over the previous two years: setting up term deposits, helping them formulate a budget program to save their deposit, and steering them through NSW First Homebuyer’s Grant, Stamp Duty exemptions and mortgage insurance. It worked. When the contacts were produced, Megan and Matthew were ready. “The team at IMB have always been incredibly supportive,” says Megan. “We wouldn’t be in our home without them.” |
"We wouldn’t be in our home without IMB" Megan and Matthew from Camden |
IMB by numbers |
1880 The year we were established |
95% Member Satisfaction* |
200,000 Members |
$10 million Given to over 700 community projects |
Talk to a home loan expert |
They will answer any of your questions and assess your situation. This can be at your local branch, on the phone or we can come to you. |
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Why choose us?
Established in 1880, IMB Bank is one of the most enduring financial institutions in the country, helping people achieve their financial goals for over 140 years. Our members can access a fully featured range of services: home and personal lending, savings and transaction accounts, term deposits, business banking, and more.
Our renowned personal service is backed by innovation, providing convenient, secure digital banking options where and when you want it. IMB also has a growing retail branch network throughout NSW and Victoria, for when you need to speak to someone in person, and a team of professionals at our locally based contact centre. We have a lending specialist in every branch and a team of mobile lending specialists who will come to you.
Find out moreWhenever, Wherever Banking
Availability of Payments ServicesLearn more about availability of payments services to individuals and businesses provided by IMB Bank. |