CBA is currently the largest bank in Australia – and the most popular mortgage provider. One in four Aussie home loans are with CBA. You’ll find a variety of home loan products with plenty of features and good rates, although Commonwealth Bank isn’t known for being very competitive when it comes to setting their interest rates. What the bank does focus on is delivering a modern, convenient lending experience with superior mobile and online banking features and a fast processing time. CBA also has plenty of options available for bridging loans, bundling packages, low doc loans, and guarantor support to help first-time homebuyers get into the home of their dreams.
Get the flexibility you want with the features and benefits you need
CBA lets you do what you want with their Standard Variable Rate product, making this one of their most popular options. Pay down your mortgage your way with unlimited extra repayments, redraw, and the option to split your loan or make interest only repayments. You can use an optional offset account to save on interest. Something you won’t see a lot of other banks – CBA has a top-up feature, which lets you increase your home loan by $10,000 or more. This is great if you plan on doing a home renovation project down the line but don’t want a line of credit loan.
Keep your budget on track with competitive fixed rates and a range of repayment options
With CBA’s Fixed Rate Home Loan, you get a great balance of flexibility as well as the confidence that comes from knowing what your monthly repayments will be with a fixed interest rate. Take advantage of a competitive rate and then customise your loan to suit your payment style. You can split your loan, pay interest in advance, or even use an offset account to save on interest. Choose between 1, 2, 3, 4, and 5-year fixed terms.
Get a discount for the life of your loan
Put more of your hard earned dollars towards paying down your mortgage with CBA’s Extra Home Loan. It doesn’t come with a complex set of features – which you may or may not use anyway. It does, however, offer low rates, low fees, and simplified redraw so you can access your additional repayments if you need to. Enjoy a discounted loan rate for the life of your mortgage.
Easily access the equity in your home with a flexible line of credit
If you want the ability to leverage your home loan in the future or to refinance so you can take advantage of the equity you’ve built up on your property, the Viridian Line of Credit offers ultimate control for responsible borrowers. Make investments or consolidate high-interest debts as you wish. You can effectively manage your finances over time as your goals change. You can also enjoy ultra flexibility – as long as your interest, fees, and charges are paid, you don’t have to make principal repayments.
Add a Wealth Package to your eligible home loan to access special discounts.
CBA will let you package most of their home loans into their Wealth Package. For an annual fee, you won’t have to pay any monthly service fees, credit card fees, or an upfront establishment fee on your loan. You’ll also enjoy discounted rates and the convenience CommBank is known for with the easy online access to your account.
The exact finance amount for a Commonwealth Bank home loan will depend on the product type, your deposit and your individual circumstances.
The interest rate on Commonwealth Bank homes loans varies between products and can be viewed above.
Commonwealth Bank is well-regarded in the Australian community however, its home loan products can have high interest rates for non-traditional applicants.
It is always worth asking your lender for a more competitive rate, whether or not they oblige is another question. Many borrowers find negotiation useful.
The amount you can borrow on a Commonwealth Bank home loan depends on the price and size of the property you are purchasing and your unique financial situation. Lenders take factors like your annual income, expenses and personal debt into account when determining your borrowing power. The minimum required deposit on a Commonwealth Bank home loan is 10%, however you will likely also need to pay for Lenders Mortgage Insur-ance (LMI) and their Low Deposit Premium fee. The best way to figure out how much of a deposit you will need for a home loan with Commonwealth is to use their handy home loan calculator.
Applying for a home loan with Commonwealth Bank should begin with sitting down with a broker so they can help you find the right mortgage for your needs. Once you’ve found the right fit, there are two ways you can apply. If your financial situation is fairly straightforward and you already bank with Commonwealth, you can apply online via Netbank. The process only takes around 15 minutes and you’ll need to provide information about the type of property you want to buy and your living expenses. If you’re currently searching for a property, you can also quickly apply for pre-conditional ap-proval online. In either case, you should receive an immediate response.
If you don’t already bank with Commonwealth or your application is a little more complicated (for example, you’re self-employed or have two or more borrowers), it’s best to book an appointment at a branch with one of their lending specialists. You will need to bring your last three months of bank statements (if you’re not with Commonwealth) or your most recent payslip, as well as a list of your living expenses including food, transport and utilities. If you are self-employed, you’ll also need to bring your business or tax re-turns, financials and ATO assessment notices for the last two years.
Once your home loan application is approved, Commonwealth Bank will send a contract and official letter of offer on your home loan. At this point, you should seek out a conveyancer or solicitor to go through the contract with you, before signing and sending it back.
The Commonwealth Bank Extra Home Loan is known for its low interest rates, low fees and flexible features. It has a variable interest rate of 3.22%, which is quite competitive compared to other mortgages on the market. However, this rate is only available to new borrowers with a loan to value (LVR) ratio of 70% or less and who have selected a life of loan discount — where the same discount rate applies for the entire term of the loan. They also have a 2-year introductory variable rate (3.27% p.a, then 3.83% p.a af-ter the 2 years) and 4-year introductory variable rare (3.27% p.a, then 3.72% p.a after the 4 years)
Another feature of the Extra Home loan is zero establishment and monthly loan service fees. It offers a redraw facility, meaning customers can access additional payments they’ve made towards their loan whenever they need it without needing to pay any fees. They also offer the ability to switch or split your loan from a variable rate to a fixed rate or switching from interest-only to principal and interest repayments.
The Commonwealth Bank Fixed Rate Home Loan is characterised by its competitive fixed rates and wide range of repayment options. Borrowers tend to choose this home loan if they want to lock in a strong rate and pro-tect themselves from the fluctuations of the market. You can apply for this home loan the same way as you would any other Commonwealth Bank mortgage — via Netbank if you’re already a customer, or by scheduling a consultation with a home lending specialist.