How does property inheritance work?
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The passing of a loved one can obviously be very challenging and sometimes comes with the additional strain of handling family personal affairs. One such area of concern can be an inheritance. While it can be emotionally difficult, it’s important to know what you need to keep in mind when you’re looking at property inheritance.
The inheritance process typically involves legal procedures and may vary depending on the specific state or territory laws. While this article is a general overview, it's important to consult with a legal professional or seek advice from the relevant authority to understand the specific laws and processes in your situation.
Is there a property inheritance tax?
There aren’t any inheritance or estate taxes in Australia. However, if you sell the property, then capital gains tax (CGT) may apply—that being said, if you dispose of the property within two years, then you will be exempt from paying CGT.
Do keep in mind that, if you rent out the property (or it is being rented out), then you may find that income tax applies and is to be paid by the beneficiary of the property.
Make sure your legal will is written
You’ve probably heard about wills in popular media, but do you know how they actually work?
Basically, a will is a legal document that outlines how a person's assets, including their property should be distributed after their death. If the deceased has a valid will, it will specify who will inherit the property and in what proportion.
It’s important to have a will written if you or a loved one passes away if you don’t have an up-to-date or written will, then the law will decide how to distribute the deceased’s assets—this is known as intestate succession.
What is intestate succession?
If a person dies without a valid will, they are said to have died intestate. In that case, the distribution of their property is determined by the intestacy laws of the relevant state or territory. These laws typically prioritise close family members, such as spouses, children, and parents, as beneficiaries.
Probate
Probate is the legal process that validates a will and confirms the appointment of an executor. The executor is responsible for administering the estate, including the distribution of the property according to the terms of the will. Probate is usually required when the deceased owned property solely in their name or when specific assets, such as real estate, need to be transferred to the beneficiaries.
Letters of administration
In cases where the deceased did not leave a will, the court may grant letters of administration to a person who will act as the administrator of the estate. The administrator is responsible for managing and distributing the assets in accordance with the intestacy laws.
Distribution
Once the legal process, either through probate or letters of administration is completed, the property can be transferred to the beneficiaries. The transfer may involve changing the title ownership with the relevant land authority and ensuring any outstanding debts or taxes are settled.
It's important to note that laws regarding property inheritance can differ between states and territories in Australia. Also keep in mind that various things, such as specific provisions in a will or disputes among beneficiaries, can complicate the inheritance process. So, if you’re facing inheritance and are unsure, it might be a good idea to seek legal advice.
What happens if I inherit a mortgage?
If the property you or your loved one inherits is still being paid off, then the responsibility of paying off the mortgage goes to the beneficiary of the property. So, if the beneficiary hasn’t budgeted for these repayments or doesn’t have a sizable cash inheritance to help pay off the loan, then it could be problematic.
If you happen to inherit a loan where the mortgage is still ongoing, then it might be a good idea to make sure that you’re in a good financial situation. Sometimes, you might not find it advantageous to keep the property.
If you want to keep the property, then it may be a good idea to check out alternative home loans so that you’re in a more advantageous position—for instance, if you inherited a lot of cash or have some of your own, an offset account could take the sting out of interest rates. If you’re not sure whether your loan works for you, then our comparison tools for refinancing your home loan might be a helpful way of deciding the right one for you.
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5.78
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5.82
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- Initial monthly repayment
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$2,927
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5.78% p.a. (5.82% p.a. comparison rate)
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n/a
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$495.40
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90.00%
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$50,000
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$3,000,000
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Variable
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Principal & Interest
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Owner Occupier
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Weekly, Fortnightly, Monthly
- Extra repayments
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yes - free
- Redraw facility
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yes - free online, fees apply for assisted redraws
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$1.00
- Offset account
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yes - optional for $10 per month - comparison rate does not include this fee.
- Split account
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Settlement fee comprises of upfront fee and loan processing fee. Valuation fee varies. Comparison rates displayed do not take into account the Optional Offset Account monthly fee.
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Variable Home Loan 90
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5.79
%
p.a.
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5.83
%
p.a.
- Initial monthly repayment
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$2,931
- No monthly or ongoing fees
- Option to add an offset for 0.10% p.a.
- interest rate
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5.79% p.a. (5.83% p.a. comparison rate)
- Fixed loan revert rate
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n/a
- Upfront fees
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$530.00
- Ongoing fees
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$0.00
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$0.00
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- Maximum loan to value ratio
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90.00%
- minimum borrowing amount
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$50,000
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$2,000,000
- type of mortgage
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Variable
- Repayment types
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Principal & Interest
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Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
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yes - free
- Minimum redraw amount
-
$0.00
- Offset account
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yes
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yes
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Offset sub-account available for additional +0.10%. $300 discharge fee and $250 discharge documentation fee applicable if loan doesnt go to full term.
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Fixed Rate Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- Interest only
- 20% min deposit
- Interest rate
-
5.49
%
p.a.
Fixed 2 years
- Comparison rate
-
5.96
%
p.a.
- Initial monthly repayment
-
$2,836
- Free extra repayments of up to $25,000 during the fixed rate period.
- Split loan available
- Weekly, fortnightly, or monthly repayment options
- interest rate
-
1 year - 5.69% p.a. (6.03% p.a. comparison rate)
2 years - 5.49% p.a. (5.96% p.a. comparison rate)
3 years - 5.59% p.a. (5.94% p.a. comparison rate)
4 years - 6.49% p.a. (6.23% p.a. comparison rate)
5 years - 6.49% p.a. (6.26% p.a. comparison rate)
- Fixed loan revert rate
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6.04% p.a.
- Upfront fees
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$300.00
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$0.00
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$395.00
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-
- Maximum loan to value ratio
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80.00%
- minimum borrowing amount
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$20,000
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-
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Fixed
- Repayment types
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Principal & Interest, Interest Only
- Availability
-
Owner Occupier
- Repayment options
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Monthly
- Extra repayments
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yes - free up to $25,000 during fixed period
- Redraw facility
-
no
- Minimum redraw amount
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-
- Offset account
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no
- Split account
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yes
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Home Loan
- Owner occupier
- Principal & Interest
- 40% min deposit
- Redraw available
- Interest rate
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5.69
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Variable
- Comparison rate
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5.70
%
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- Initial monthly repayment
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$2,899
- Offset and non-offset options for flexible payments
- No application and monthly account keeping fees
- Get up to $4,000 cashback (T&Cs apply)
- interest rate
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5.69% p.a. (5.70% p.a. comparison rate)
- Fixed loan revert rate
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n/a
- Upfront fees
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$250.00
- Ongoing fees
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$0.00
- Discharge Fee
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$250.00
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- Maximum loan to value ratio
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60.00%
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$100,000
- maximum borrowing amount
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- type of mortgage
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Variable
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Principal & Interest
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Owner Occupier
- Repayment options
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Weekly, Fortnightly, Monthly
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yes - free
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Valuation fee payable at cost
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Fixed Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 5% min deposit
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- Interest rate
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5.69
%
p.a.
Fixed 2 years
- Comparison rate
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6.00
%
p.a.
- Initial monthly repayment
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$2,899
- Get up to $4,000 cashback (T&Cs apply)
- Up to 12 months repayments in advance without penalties
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1 year - 5.89% p.a. (6.05% p.a. comparison rate)
2 years - 5.69% p.a. (6.00% p.a. comparison rate)
3 years - 5.69% p.a. (5.98% p.a. comparison rate)
4 years - 5.89% p.a. (6.03% p.a. comparison rate)
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- Fixed loan revert rate
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5.99% p.a.
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$799.00
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$6.00 monthly
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$350.00
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- Maximum loan to value ratio
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95.00%
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$10,000
- maximum borrowing amount
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$5,000,000
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Fixed
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Principal & Interest
- Availability
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Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
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yes - free
- Minimum redraw amount
-
$500.00
- Offset account
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no
- Split account
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yes
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Monthly fee only applies to fixed period of loan.
- Other benefits
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$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
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Mozo experts choice awards won:
- Low Cost Home Loan - 2025
Unloan Variable Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
- Redraw available
- Interest rate
-
5.74
%
p.a.
Variable
- Comparison rate
-
5.65
%
p.a.
- Initial monthly repayment
-
$2,915
- Built by CommBank
- The first home loan with an increasing discount (conditions apply)
- No application or banking fees
- interest rate
-
5.74% p.a. (5.65% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$0.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$0.00
- Package
-
-
- Maximum loan to value ratio
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80.00%
- minimum borrowing amount
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$10,000
- maximum borrowing amount
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$10,000,000
- type of mortgage
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Variable
- Repayment types
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Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
-
- Offset account
-
no
- Split account
-
no
- Other restrictions
-
-
- Other benefits
-
Rate automatically discounted by 0.01% p.a. every year up to a maximum discount of 0.30% p.a..
- Special Offers
-
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Read reviews and learn more about Unloan home loans
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Fixed Home Loan
- Fixed rate
- Owner occupier
- Principal & Interest
- 10% min deposit
- Offset available
- Redraw available
- Interest rate
-
5.74
%
p.a.
Fixed 2 years
- Comparison rate
-
5.81
%
p.a.
- Initial monthly repayment
-
$2,915
- $0 application fee to pay
- Additional repayments up to $20,000/year
- Apply in as little as 15 minutes
- interest rate
-
1 year - 5.99% p.a. (5.84% p.a. comparison rate)
2 years - 5.74% p.a. (5.81% p.a. comparison rate)
3 years - 5.94% p.a. (5.86% p.a. comparison rate)
4 years - 6.14% p.a. (5.95% p.a. comparison rate)
5 years - 6.14% p.a. (5.98% p.a. comparison rate)
- Fixed loan revert rate
-
5.78% p.a.
- Upfront fees
-
$495.40
- Ongoing fees
-
$0.00
- Discharge Fee
-
$325.00
- Package
-
-
- Maximum loan to value ratio
-
90.00%
- minimum borrowing amount
-
$50,000
- maximum borrowing amount
-
$3,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free, up to $20,000 p.a.
- Redraw facility
-
yes - free online, fees apply for assisted redraws
- Minimum redraw amount
-
$1.00
- Offset account
-
yes - optional for $10 per month - comparison rate does not include this fee.
- Split account
-
-
- Other restrictions
-
Settlement fee comprises of upfront fee and loan processing fee. Valuation fee varies. Comparison rates displayed do not take into account the Optional Offset Account monthly fee.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about NRMA Home Loans home loans
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Mozo experts choice awards won:
- Offset Home Loan - 2025
- First Home Buyer Loan - 2025
Variable Home Loan
- Owner occupier
- Principal & Interest
- 10% min deposit
- Offset available
- Redraw available
- Interest rate
-
5.78
%
p.a.
Variable
- Comparison rate
-
5.82
%
p.a.
- Initial monthly repayment
-
$2,927
- $0 application fee to pay
- Unlimited additional repayments
- Apply in as little as 15 minutes
- interest rate
-
5.78% p.a. (5.82% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$495.40
- Ongoing fees
-
$0.00
- Discharge Fee
-
$325.00
- Package
-
-
- Maximum loan to value ratio
-
90.00%
- minimum borrowing amount
-
$50,000
- maximum borrowing amount
-
$3,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free online, fees apply for assisted redraws
- Minimum redraw amount
-
$1.00
- Offset account
-
yes - optional for $10 per month - comparison rate does not include this fee.
- Split account
-
-
- Other restrictions
-
Settlement fee comprises of upfront fee and loan processing fee. Valuation fee varies. Comparison rates displayed do not take into account the Optional Offset Account monthly fee.
- Other benefits
-
-
- Special Offers
-
-
Read reviews and learn more about NRMA Home Loans home loans
Go to site -
Budget Home Loan
- Owner occupier
- Principal & Interest
- 20% min deposit
- Redraw available
- Cashback
- Interest rate
-
5.79
%
p.a.
Variable
- Comparison rate
-
5.82
%
p.a.
- Initial monthly repayment
-
$2,931
- Get up to $4,000 cashback (T&Cs apply)
- Split loan available
- interest rate
-
5.79% p.a. (5.82% p.a. comparison rate)
- Fixed loan revert rate
-
n/a
- Upfront fees
-
$350.00
- Ongoing fees
-
$0.00
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Variable
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
Weekly, Fortnightly, Monthly
- Extra repayments
-
yes - free
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
The $449 application fee is waived for <80% LVR Owner Occupier Principal and Interest loans.
- Special Offers
-
$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
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* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
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