IMB Bank almost doubles RBA’s cut, slashes up to 0.40% p.a. off fixed rate home loans

By Jasmine Gearie · · 2 min read
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A young man holding a cup of coffee and standing in his kitchen.

IMB Bank has sliced 40 basis points off its two- and three-year fixed rate home loans – almost doubling the Reserve Bank’s May cut of 0.25% – and further cementing its place as one of our top picks for the cheapest home loans currently available.

The 0.40% p.a. cut means IMB’s two-year fixed rate now comes in at 5.29% p.a. (5.72% p.a. comparison rate*), and the three-year term also has a 5.29% p.a. interest rate (5.69% p.a. comparison rate*).

Fixed rate term New interest rate (p.a.) Comparison rate (p.a.) Interest rate cut Monthly repayment on $500k
2 years 5.29% 5.72% -0.40% $3,008
3 years 5.29% 5.69% -0.40% $3,008
Source: Mozo database as at 30 May, 2025. Rates are for an owner occupier with <95% LVR, making principal and interest repayments over 25 years on a $500,000 home loan.

What’s particularly good about these fixed rates is that they’re available to borrowers with a loan-to-value ratio (LVR) of up to 95%. That means you can borrow up to 95% of your property’s value and still secure a competitive rate.

Bank of Queensland currently has the lowest two-year fixed rate in our database of 4.99% p.a. (5.84% p.a. comparison rate*), but that’s only available to borrowers with an LVR of at least 80%. IMB’s LVR of up to 95% opens it up to more buyers.

There’s also an excellent cashback offer available where you can get up to $4,000 cash back in your pocket when you take out a new loan or refinance your mortgage with IMB.

See the full details of IMB’s loan below, along with some other options available.

Important disclosures and comparison rate warning*
IMB Bank Fixed Rate Home Loan (2 years)
  • 5.29% p.a. for 2 years (5.72% p.a. comparison rate*)
  • Available with deposits of just 5%
  • Up to $4,000 cashback available

  • $6 monthly fee
  • LVR of 80% or less required for cashback

How it can reduce your costs

IMB Bank is offering up to $4,000 cashback when you take out a new loan or refinance with the bank, which is one of the highest cashback offers in our database. To be eligible, your home loan amount must be $750,000 or more, with an LVR of 80% or less.

You’ll only need a deposit of at least 5% to secure this interest rate, which could be a drawcard for first home buyers, though it means those with higher deposits won’t benefit from a lower rate.

  • Premium 'Special' Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    4.99 % p.a.
    Fixed 3 years
    Comparison rate
    6.15 % p.a.
    Go to site
    • New loans over $800K and up to $2.5M
    • Additional repayments up to $20,000 per year
    • No application or monthly fees to pay

  • Fixed Basic Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 20% min deposit
    • Redraw available
    Interest rate
    5.29 % p.a.
    Fixed 2 years
    Comparison rate
    5.52 % p.a.
    Go to site
    • $0 application fee to pay
    • Additional repayments up to $20,000/year
    • Apply in as little as 15 minutes

  • Fixed Rate Home Loan

    • Fixed rate
    • Owner occupier
    • Principal & Interest
    • 5% min deposit
    Interest rate
    5.49 % p.a.
    Fixed 2 years
    Comparison rate
    5.77 % p.a.
    Go to site
    • No ongoing annual fees
    • Make up to $25,000 extra repayments during a fixed period, fee free (T&Cs apply)
    • Lock in for up to 5 years.

* 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.

^See information about the Mozo Experts Choice Home Loan Awards

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