Commonwealth Bank Fixed Rate Wealth Package Home LoanPosted June 26th, 2013 and last modified October 14th, 2014
Get a discount off your loan interest rate and fees and a range of other benefits in exchange for an annual fee
A fixed rate loan gives you the opportunity do away with the uncertainty of a mortgage. Paying off a fixed rate mortgage means your repayments won’t change at all during the fixed term. If rates rise you’ll save money; however, getting a good deal on the rate you fix is still crucial because you’ll be paying this same amount for upwards of a year. The Commonwealth Bank Fixed Rate Home Loan with Wealth Package gives you a discount on the loan. It also waives establishment fees and loan service fees for transaction accounts and credit cards, discount rates on personal loans and insurance.
$1,000 offer cashback for first home buyers
For a limited time, CBA is offering a $1,000 cashback for first home buyers who borrow more than $100,000 and have a maximum loan to value ratio of no more than 90%. Apply by 29 November 2014 and fund by 30 January 2015.
Things to consider about the Commonwealth Bank Fixed Rate Home Loan with Wealth Package
The Fixed Rate Home Loan with Wealth Package is a full documentation loan. This means you have to supply the full range of employment and income information required by your lender. If you're self-employed or require a low doc loan, the Fixed Rate Home Loan is available, but not with the Wealth Package.
The loan can be taken out by owner occupiers, investors and used as finance to purchase land. It’s also available for bridging finance.
The Fixed Rate Home Loan is not available for business purposes, purchasing an off-the-plan property or constructing a home or investment property.
Features of the Commonwealth Bank Fixed Rate Home Loan with Wealth Package
- Maximum LVR and loan term: This loan allows you to borrow up to 80% of the value of the property without lender’s mortgage insurance (LMI), or more if you’re prepared to pay the LMI premium. This loan has a minimum term of one year and a maximum of 30 years.
- Rate Lock: This enables you to lock in the interest rate at the time of application for up to 90 days. It protects you in the event that the advertised rate rises before your loan is finalised.
- Interest only: This loan allows you to pay off only the interest component rather than both the interest and principal. This decreases your repayments each month, which may be beneficial for those who want the extra cash to renovate or invest in alternative assets. If you choose this option your repayments will need to be paid each month. Borrowers paying interest and principal repayments can also choose weekly and fortnightly repayment schedules.
- Partial offset account: You can link a Commonwealth Mortgage Interest Saver Account (MISA) to your Fixed Rate Home Loan. The balance left in the MISA offsets the same amount in your loan by 1.5% p.a. A MISA balance of $5000 for example means $5000 of your home loan balance would be calculated at an interest rate 1.5% p.a lower than your fixed rate. This can save you money over the course of the year, as well as shorten your loan term. You need to have a minimum of $1000 in your MISA to begin the offset process.
- Get access to funds in emergencies: You can withdraw funds from your MISA at any time, as long as the withdrawal is for a minimum of $500. This can be done at a branch, over the phone, via internet banking, at some ATMS, via EFTPOS or at Australia Post.
- Additional payments: You can put extra funds towards this loan to pay it off early. This is capped at $10,000 per year without penalty.
- Wealth Package discounts: This package waives fees for some personal loans, credit cards and transaction accounts. It also gives discounts on the premiums of some car, home and loan insurance policies, as well as discounts on the interest rate of some personal loans.
- Split loan option: Splitting your loan will give you the benefits of both a fixed rate loan and a variable rate loan. If interest rates rise your fixed rate portion will shield you from the increased costs, and if rates decrease the variable rate will maximise any savings.
Fees you can avoid:
- Rate lock. $750. This is charged to cover the cost of locking in the rate advertised at the time of application, to ensure your loan rate doesn’t rise in the time taken to finalise your loan application.
- Lender’s mortgage insurance: Amount depends on loan and deposit. This is charged if you borrow over 80% of the property’s value. It insures your lender in the event you default on your loan and they’re unable to recoup costs after selling your property.
- Establishment fee. $600. This is charged to pay for the costs involved in setting up your loan, and is waived under the Wealth Package.
- Loan service fee. $8. This is a monthly fee for upkeeping your loan, and is waived under the Wealth Package.
Fees you can’t avoid:
- Annual fee. $375. This covers the cost of the wealth package, and is charged each year.
How to enquire about the Commonwealth Bank Fixed Rate Home Loan with Wealth Package
Aussie Mortgage Brokers provide these loans on behalf of Commonwealth Bank. You can speak to an Aussie Mortgage broker by clicking the ‘find out more’, ‘enquire’ or ‘details’ buttons on the bottom or side of this page.
This will take you to a page where you can organise a free appointment with a broker. Simply click the ‘Free Appointment’ button and you’ll be taken to the Aussie website. Here you need to enter your contact details, and an Aussie loan specialist will contact you.
Take advantage of discounts on your loan rate for two years and get in control of your mortgage. Click ‘enquire’ now to learn more.