IMB Bank Loan Support

Frequently asked loan questions

Top up your loan

You may be able to borrow additional funds on your existing loan if your home has increased in value or you’ve paid down some of your loan. The amount available will depend on how much equity is available.

How does it work?

We take into account your current financial situation, objectives and your current loan to property value ratio, to determine how much you can increase your loan. To find out more, please visit your local branch or call an IMB home loan specialist on 133 462. Or fill out the Home Loan Enquiry Form and we’ll get in touch with you shortly.

Things to consider

Increasing your loan amount may increase your repayments. Please seek financial advice to determine if topping up your loan is the right option for you.
There can be fees involved with topping up your loan
Top-ups are not available on fixed interest loans without breaking the fixed term contract, which may incur break costs.
The minimum top-up amount is $10,000.
A valuation may be required on your home, a fee may apply

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What is an offset account

An offset facility works by taking the daily balance of your nominated transaction account and offsetting it against the outstanding balance on your loan, effectively reducing the amount of interest charged. The offset facility is available on the Everyday and Everday Unlimited accounts.

If you have an eligible IMB home loan account you may link an offset facility to it. Offsetting your home loan can save you interest over the life of your loan.

100% Offset is only available on selected loan products. You may need to switch your loan before you can add an offset facility.

If you would like to discuss how an offset facility could benefit you, please call IMB direct on 133 462 to speak to a home loan specialist or visit your local branch.

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Redraw your extra repayments

If you have been making extra repayments towards your loan you may have the option to redraw these funds. If you have a residential owner-occupied loan or a residential investment loan you will have a redraw facility. The minimum amount you can redraw is $500.

Redrawing is free on Internet Banking and via the Mobile App, noting that if you have a joint account, both the account holders will need to authorise the redraw. If you do not use Internet Banking or the Mobile App, you can request that we will do the redraw for you however there is a $50 fee. If you would like us to do the redraw please fill out our online enquiry form.

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Making repayments

Repayments can be made by:

Periodical payment from your IMB savings account
Direct debit from another bank
IMB internet banking
IMB phone banking
Visiting a branch

The easiest way to check your minimum monthly repayment is on IMB internet banking or by calling IMB direct on 133 462. Even though your repayment is due monthly, you may make repayments fortnightly or weekly as long as this monthly repayment is met.

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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.

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.

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 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.

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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.

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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 regularly can I make repayments on my loan?

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

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.

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.

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.

What is the difference between offset and redraw?

An offset account is a separate IMB transaction account (available of Everyday and Everday Unlimited accounts), 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 is free on Internet Banking and the Mobile App. If you don’t use Internet Banking or the Mobile App there is a $50 fee. The redraw facility is available on all residential owner occupier and residential investment loans.

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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.

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.

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 balance 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 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.

What is a redraw facility?

A redraw facility allows you to withdraw any additional repayments you’ve contributed to your home loan. There is a minimum redraw amount of $500 and is free on Internet Banking and the Mobile App. If you don’t use Internet Banking or the Mobile App there is a $50 fee.

Home Loan Health Check

It could be time for a home loan health check if you are:

Coming off of a fixed term
Coming to the end of an interest only term
Wanting some tips to pay off your loan sooner

Considering purchasing another property
Planning renovations
Topping up your home loan

A home loan health check can give you peace of mind that your home loan is working for you. Set up an appointment at your local branch, fill out our online enquiry form or call us on 133 462.

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