Quick guide to IMB Bank home loans
Dominic Beattie
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Illawarra Mutual Building Society was established more than 150 years ago to "enable people to become their own landlords". After many mergers and partnerships along the way, the IMB Bank brand emerged in 2015.
Today, it offers the full suite of retail, business, and digital banking services, winning accolades for its product offerings, including being named one of the world's best banks by Forbes Magazine in 2020.
It's now among the top 10 largest customer-owned banks in Australia, with more than $10 billion in assets on its books - far smaller than the big four banks but with enough scale to offer competitive products and personalised service.
It has also stayed true to its original purpose of helping people purchase their own homes, offering highly competitive interest rates and home loan features.
What home loans does IMB Bank offer?
IMB Bank offers the following home loan products:
Budget Home Loan (basic variable rate)
Fixed Rate Home Loan (for terms of between 1-5 years)
Essentials Home Loan (variable rate with linked offset account)
See also: What are the different types of home loans?
Customising your loan
Borrowers can choose between variable and fixed interest rates, and there is also the option to split loans for those wanting extra stability and/or flexibility.
Borrowers, both owner occupiers and investors, can also choose between principal and interest (P&I) and interest-only (IO) repayments.
IMB Bank home loan interest rates
Here are IMB's current home loan rates:
Considering other lenders? Compare home loans with these low-rate offers for owner occupiers:
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Extra Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.99% p.a. | 6.02% p.a. | $2,995 | Principal & Interest | Variable | $0 | $799 | 70% | |||||||||||||
6.04% p.a. | 6.07% p.a. | $3,011 | Principal & Interest | Variable | $0 | $799 | 80% | |||||||||||||
6.09% p.a. | 6.20% p.a. | $3,027 | Principal & Interest | Variable | $10 | $799 | 70% | |||||||||||||
6.14% p.a. | 6.25% p.a. | $3,043 | Principal & Interest | Variable | $10 | $799 | 80% | |||||||||||||
6.24% p.a. | 6.30% p.a. | $3,075 | Principal & Interest | Variable | $0 | $799 | 80% | |||||||||||||
6.24% p.a. | 6.31% p.a. | $3,075 | Principal & Interest | Fixed | $6 | $799 | 95% | |||||||||||||
6.24% p.a. | 6.31% p.a. | $3,075 | Principal & Interest | Fixed | $6 | $799 | 95% | |||||||||||||
6.24% p.a. | 6.32% p.a. | $3,075 | Principal & Interest | Fixed | $6 | $799 | 95% | |||||||||||||
6.29% p.a. | 6.18% p.a. | $2,621 | Interest-only | Variable | $0 | $799 | 70% | |||||||||||||
6.29% p.a. | 6.35% p.a. | $3,092 | Principal & Interest | Variable | $0 | $449 | 90% |
Features of IMB Bank Home Loans
Some key features include:
- Fee-free: Selected home loan products across IMB Bank's portfolio are free from establishment fees and/or monthly fees
- Split loans: Customers have the option to split their loans into fixed- and variable-rate portions
- Offset accounts: Offset accounts up to 100% are available for select home loans, helping to bring down overall interest costs
- Redraw facility: Borrowers have access to free withdraw of any extra repayments they've made
- Additional repayments: Across its home loan portfolio, IMB Bank allows you to make unrestricted additional repayments on variable-rate home loans. It also allows up to 12 months of repayments in advance on fixed-rate loans without penalty (although penalties apply for higher repayment amounts)
- Cashback Offers: Select IMB's home loan products may include cashback offers for eligible borrowers
See also: Latest home loan offers and deals
IMB home loans: Pros & cons
Pros
- Digital mortgage technology: IMB Bank's digital platform allows customers to apply for their home loans online and can deliver conditional approval within 20 minutes (for straightforward loan applications)
- Highly competitive interest rates: IMB's home loan interest rates are at the lower end of the market, particularly its Budget and Essential home loan products
- Cashback offers: IMB regularly offers attractive cashback deals that can help ease upfront costs to eligible refinancers or borrowers taking out new home loans
- Face-to-face service: With an extensive branch and mobile lender network, IMB also provides real people to support for customers who prefer a personal touch
- Family guarantee option: IMB allows guarantor home loans which can help first home buyers get into the property market without having to take out Lenders Mortgage Insurance
- Participant in the 5% Deposit Scheme: IMB Bank is on the panel of lenders for the federal government's 5% Deposit Scheme for first homebuyers and single parents
- Home loan pre-approvals available: IMB Bank's home loan pre-approvals last for 90 days which can help prospective borrowers navigate the market in their home buying journeys
Cons
- Confined branch network: For those preferring in-branch contact and services, IMB Bank branches are largely located in the Illawarra and NSW South Coast regions, as well as Sydney, the ACT, and one branch in suburban Melbourne
- Can be slow processing applications: According to some online reviews, IMB Bank may be slow processing home loan applications that are outside the norm
- Limited fixed-rate extra repayments: Many lenders restrict and penalise extra payments on fixed-rate loans. IMB allows 12 months worth of advanced repayments before penalties apply
- Minimum redraw of $500: While redraws are free via the internet and mobile banking app, $500 is the minimum redraw amount
Other considerations in taking out an IMB home loan
As well as all-important interest rates and home loan features, some borrowers like to know what sort of institution they'll be dealing with for the life of their home loan.
As a customer-owned bank, IMB returns its profits to the community it serves. The IMB Bank Community Foundation has played a role in supporting grassroots initiatives since its establishment 25 years ago, pledging more than $12 million to over 1,000 initiatives. IMB directly empowers local organisations and individuals to make an impact in their communities as part of its business model.
The bank is also recognised for its corporate responsibility efforts, receiving a Workplace Gender Equality Agency (WGEA) Citation for gender equality in 2023 and certification as a carbon-neutral organisation by Climate Active.
Applying with IMB Bank
There are multiple channels in applying for an IMB home loan:
Apply online via IMB's secure digital mortgage platform
Speak to a lending specialist at an IMB branch or over the phone through its Australian-based contact centre on 133 462.
Book an appointment with a mobile lender for a personalised consultation
Eligibility
If you're looking into applying for a IMB Bank home loan, eligibility requirements include:
Applicants must be over the age of 18
Applicants must be an Australian citizen or permanent resident
Applicants must have a regular source of income
Good credit history
Demonstrate your ability to service a loan