Commonwealth Bank 12 Month Discounted Variable Rate

Rates and Fees verified correct on December 10th, 2016

Enjoy a lower interest rate at the beginning of your loan term to help out with the expenses of turning a house into a home.

Buying a new home or investment property can be a life changing experience. It's also well known fact you will have many expenses during the first year of home ownership, and a home loan offering discounted interest rates for the first twelve months could free up cash that you can use for other purposes, such as furniture or renovations.

If you’re looking for a loan for a new home or investment property the Commonwealth Bank 12 Month Discounted Variable Rate home loan might make the first year of home ownership a little easier.

Interest Rate Max Insured LVR Max LVR
1 Year Guaranteed Rate (investment)
4.79% p.a.
Comparison Rate
5.56% p.a.
95% 80%
12 Month Discounted Variable Rate (investment)
4.79% p.a.
Comparison Rate
5.57% p.a.
95% 80%
12 Months Discounted Loan
4.52% p.a.
Comparison Rate
5.30% p.a.
95% 80%
1 Year Guaranteed Loan
4.39% p.a.
Comparison Rate
5.28% p.a.
95% 80%
Product NameCommonwealth Bank Introductory Home Loan
Interest Rate TypeVariable
Comp Rate^ (p.a.)
Minimum Loan Amount$10,000
Maximum Loan Amount$1,000,000
Minimum Loan Term1 year
Maximum Loan Term30 years
Maximum LVR80%
Maximum Insured LVR95%
Mortgage Offset AccountYes
Mortgage 100% OffsetYes
Loan Redraw FacilityYes
Split Loan FacilityNo
Fixed Interest OptionNo
Loan PortableYes
Suitable for InvestmentYes
Extra RepaymentYes
Available as equity loan/line of creditNo
Repayment TypePrincipal & Interest and Interest Only Options
Application Fee$600
Lender's Legal Fee$0
Valuation Fee$0
Ongoing Fees$8 monthly ($96 p.a.)
Settlement Fee$200
Discharge Fee$350

Pros

  • Make additional repayments without penalty
  • Access extra funds via the redraw facility

Cons

  • There is a $600 application fee
  • There is a $8 monthly fee
  • There is minimum set for redraw amounts
  • A discharge fee of $350 applies when you close your home loan account

Features of the Commonwealth Bank 12 Month Discounted Variable Rate Home Loan

Commonwealth Bank has an introductory offer of discounted interest rates on home loans. Among the main features of the loan are:

  • Split your loan. Loan splitting is allowed so that you can have part of your loan on fixed interest rates and part on variable rates. You can budget with confidence that the repayments on the fixed rate portion of your loan won’t change even if interest rates rise. This allows you to retain the benefit of flexible loan features that help you to save on the overall cost of your loan.
  • Interest-only. An interest-only option is available so that repayments are reduced to the interest component. Interest-only repayments are available for between 1 and 15 years for investment homes or between 1 and 10 years for owner-occupied properties. This arrangement is attractive to buyers of investment properties who want to minimise their monthly repayments, or owner occupiers looking to finance a renovation or additional investments.
  • Choose how to make repayments. Flexible repayment options are available with weekly, fortnightly or monthly repayment periods for principal and interest loans. Interest-only repayments must be made on a monthly basis.
  • Extra repayments. Additional repayments may be made to reduce the length of your loan and save on interest. You can make unlimited extra repayments without penalty, so you might choose to pay a little extra each month or deposit lump sums, such as tax refunds, into your loan account.
  • Redraw facility. Redraw of additional repayments is allowed so that you can access the additional funds if you need them. Over-the-counter redraws must be at least $1,000 and attract a $5 fee, but electronic redraws are fee-free with a minimum of $500 per redraw. If you have made additional repayments into your loan account you may take a repayment holiday, so that you suspend repayments for a nominated period from 3 to 12 months. You might find it helpful to take a repayment holiday if your circumstances change, for example if your income is lower during maternity leave.
  • Choose your own loan once the 12 months is up. The loan reverts to the standard variable rate at the end of the twelve month introductory period, unless you choose another Commonwealth Bank home loan option.

Commonwealth 12 Month Discounted Variable Loan FAQ

Who is eligible to apply?

You are eligible to apply if you are wishing to borrow $10,000 or more over a period of up to 30 years to buy a home or investment housing.

How much can I borrow?

You can borrow up to 80% of the property’s value without lender’s mortgage insurance (LMI). If you borrow above 80% you will need to take our LMI.

What are the fees and charges?

There is a loan establishment fee of $600 and an ongoing loan service fee of $8 per year. Rate Locks are charged at $750 each. This will lock in the advertised interest rate applicable when you apply, so you don't pay more if rates increase by the time your loan is approved.

How to apply for the 12 Month Discounted Variable Rate Home Loan

If you click the 'Enquire' or 'find out more' buttons on the right hand side or bottom of the page you'll be taken to a page where you can book a free appointment with Aussie Mortgage Broking.

If you want to arrange a time to discuss the loan with a specialist, click the 'free appointment' button. This will transport you to the Aussie site, where you have to enter in a few contact details. Once this is done an Aussie mortgage specialist will contact you.

The Commonwealth Bank 12 Month Discounted Variable Rate Home Loan provides savings during that critical first year of a home loan. The loan also has a host of flexible features that could make managing your money easier after the introductory discount period is over.


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Commonwealth Bank 12 Month Discounted Variable Rate Interest Rate History vs RBA Cash Rate Graph


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This page was last modified on 9 May 2016 at 17:51.

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Commonwealth Bank Introductory Home Loan

  • Interest Rate

    N/A

  • Comparison Rate

    N/A

  • App Fee / Annual Service Fee

    $600 / $8

  • Max LVR

    80%

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