Frequently Asked Questions

What is a redraw facility?

A redraw facility allows you to withdraw any additional repayments you’ve contributed to your home loan. The minimum redraw amount is $500 and a fee may apply.

How is interest calculated on my loan?

Interest is calculated daily on the outstanding balance of your loan account, then charged to the account on the last day of each month.

How does an offset facility work?

An offset account is a bank account that’s linked to your eligible home loan. The balance in an offset account is taken off your home loan when calculating interest, which can reduce the amount of interest you pay. For example, if you have a $200,000 home loan and $30,000 in your offset account, interest is calculated on $170,000 ($200,000 - $30,000). 100% Offset facility is available on the IMB Everyday and IMB Everyday Unlimited Accounts.

How can I switch between variable and fixed rates?

You can submit your request online or if you need help, chat to a home loan specialist on 133 462 to find out your options. If your switch is approved, you will need to sign a contract variation and a switch fee may apply.

When is my loan repayment due?

Your loan repayments are due each month on the same day your loan was settled (unless it is an interest only loan, in which case repayments are due on the first of each month). To meet this repayment you may pay weekly, fortnightly or monthly as long as the total amount is received by the due date. 

What is the difference between offset and redraw?

An offset account is a separate IMB transaction account, where the balance in this account ‘offsets’ your loan balance when it comes to calculating the interest charged to your home loan. An offset facility is only available on eligible loans.

A redraw facility is the ability to withdraw any additional repayments you’ve contributed to your home loan. There is a minimum redraw amount of $500 and fees may apply. The redraw facility is available on all residential owner occupier and residential investment loans.

How much extra can I pay into my loan account?

If your loan is on a variable rate, you may make unlimited extra repayments. If you have a fixed rate loan, you may pay up to 12 times your minimum monthly repayment in advance at any time during your fixed term.

How much time and interest will I save if I make extra loan repayments?

You can see the difference extra repayments can make using our home loan repayment calculator.

Why can’t I see a redraw amount on my loan?

You will need to be at least one month ahead in your loan repayments, plus $500 (i.e. the minimum redraw amount) to see a redraw amount. Also, all parties on the loan need to be registered for full internet banking, and have an IMB account in the same name as the home loan. 

How regularly can I make repayments on my loan?

Repayments are due monthly, but you can make payments weekly, fortnightly or monthly.

How much in advance can I pay on a fixed rate loan?

You may pay up to 12 times your minimum monthly repayment in advance into your fixed rate loan at any time during your fixed term. 

How can I change to interest only repayments?

You can apply to switch to interest only repayments with your local branch, lender or over the phone. Once we receive your application we will need to verify your financial situation, as an interest only period effectively shortens your loan term and increases your repayments later in the loan term. A switching fee may apply if your application is approved.

It’s important to consider the impact of interest only repayments on your loan. This will reduce your repayments now, but it effectively shortens your loan term and increases your repayments later on. For example, if you take out a loan over 30 years and start with 5 years interest only, you’ll only have 25 years to pay off your loan amount after the interest only period ends.

What is the difference between Principal and Interest and Interest Only repayments?

Principal and Interest repayments are where you pay both an interest charge and also repay part of the amount borrowed (principal) at the same time. The remaining loan balance reduces as the principal repayments are made.

Interest Only repayments are where you pay only the interest charge. There is no principal amount included in the repayment so the remaining loan balance does not reduce during this period.

What effect does interest only repayments have over the life of my loan?

Interest only repayments are lower than principal and interest repayments, but they don’t reduce your loan balance. This effectively shortens your loan term and increases your repayments later on. For example, if you take out a loan over 30 years and start with 5 years interest only, you’ll only have 25 years remaining to pay off your loan amount and your repayments will be higher than if you were paying principal and interest from your first repayment.
Use our home loan repayment calculator as a guide to see the effect an interest only period can have on your repayments.

What is the process for switching to a different home loan product?

You can apply for a product/rate switch with your local branch, lender or over the phone. If your switch is approved, you will need to sign contract variation documents. You may also need to pay a switch fee.

How can I change the purpose of my loan from owner occupier to investment or vice versa?

You can update the purpose of your loan with your local branch, lender or over the phone. The request is subject to approval and we’ll need to verify the request with a utility bill.  You may also need to pay a switch fee.

_{Normal IMB lending criteria, terms and conditions, fees and charges apply.The advice on this website has been prepared without taking account of your objectives, financial situation or needs. Before you act on this advice you should consider the appropriateness of this advice in regard to your objectives, financial situation and needs. You should consider the relevant Terms and Conditions or Product Disclosure Statement before deciding whether to acquire any of the products shown on this website.}