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Paying Off Your Home Loan Sooner

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There are three main ways to save on your home loan:

  1. Make more frequent repayments
  2. Make additional repayments
  3. Use a 100% offset account

These simple yet effective solutions are available on nearly all of IMB’s home loan products, and by enabling you to reduce the interest you pay, will help you pay off your loan faster!

1. Make more frequent repayments^

By choosing to pay half your monthly home loan repayment fortnightly instead of monthly, you will make one extra monthly repayment on your home loan every year.

Example – if your minimum monthly loan repayment is $1,500

$1,500 per month x 12 months a year = $18,000
$750 per fortnight x 26 fortnights a year

= $19,500

That adds up to an entire monthly repayment extra every year:

$19,500 - $18,000 = $1,500

Over the life of your home loan this really can make a big difference.

2. Make additional repayments^

Whether you pay a little bit extra every repayment or make larger lump sum payments when you can, every bit helps toward saving you money and paying off your loan faster.

For example over a 30 year loan term, paying an extra $100 per monthly payment from the start of your loan on a $300,000 loan at a rate of 6.75% pa can save you over 4 years and more than $65,000 in interest on your home loan.*

3. Use a 100% offset account

Link your home loan to a 100% Offset Account – this way the entire balance of your offset account works towards reducing the interest you pay on your home loan. It works like this; before interest is calculated on your home loan the balance of your offset account is deducted from the balance of your home loan.


Home Loan Balance $255,000
Everyday Account


$255,000 – $5,000 =


Interest Calculated on New Balance of $250,000.

Normal lending criteria, terms and conditions, fees and charges apply.

^ Unlimited additional repayments are available on all IMB Home Loan products with the exception of the IMB Fixed Rate Home Loans which only allow up to 12 months additional repayments without charge.

^^ A 100% Mortgage Offset Account is available on the IMB Standard Variable, IMB Professionals Mortgage Package and IMB Lo Doc Home Loan options. The 100% Offset facility is only available on the IMB Everyday Unlimited or IMB Everyday Accounts. Please consider the PDS available from IMB before making a decision to acquire these products.

*The figures quoted are an indication only. IMB does not guarantee the accuracy of any figures quoted. IMB loan repayments are based on a monthly minimum repayment amount. More frequent payments can be made subject to coverage of the monthly minimum amount. Speak to your local IMB home loan specialist about your options.

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