Fix your rate and plan your budget effectively with the Commonwealth Bank Fixed Rate Home Loan.
A fixed loan from Commonwealth offers individuals interested in buying a property to live in or for investment purposes a repayment plan that will not change for the term of your loan. This means that you won't be surprised by your payment suddenly going up.
$2,000 refinance cashback offer
If you refinance to the Commonwealth Bank from another lender you could be eligible for a $2,000 cashback. The offer applies to principal and interest owner occupier home loans and all investment and Viridian line of credit loans. You need to refinance a loan amount of at least $250,000 and apply before 10 January 2020 and have your loan funded by 06 March 2020.
| Product Name | Commonwealth Bank Fixed Rate Home |
|---|---|
| Interest Rate Type | Fixed |
| Comp Rate^ (p.a.) | |
| Minimum Loan Amount | $10,000 |
| Minimum Loan Term | 1 year |
| Maximum Loan Term | 30 years |
| Maximum LVR | 80% |
| Maximum Insured LVR | 95% |
| Mortgage Offset Account | Yes |
| Mortgage 100% Offset | No |
| Loan Redraw Facility | No |
| Split Loan Facility | Yes |
| Loan Portable | Yes |
| Suitable for Investment | Yes |
| Extra Repayment | Yes |
| Available as equity loan/line of credit | No |
| Repayment Type | Principal & 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
- You can pay extra payments during the fixed term without penalty
- You can borrow up to 95% of the property value
Cons
- There is a $600 application fee
- There is an $8 per month account fee
- A discharge fee of $350 applies when you close your home loan account
Overview of the Commonwealth Bank Fixed Loan
This loan is available to those wishing to buy a home, investors looking for a new property, those wishing to purchase land and borrowers looking for bridging finance. It's not available for those constructing a home or investment property, buying a property off-the-plan, or to finance business purposes.
Features of the Fixed Rate Loan from Commonwealth Bank
A Fixed Rate Loan from Commonwealth Bank allows individuals to fix their interest rate on their home loan for up to fifteen years. Other features include:
- Interest-only payments: The combination of fixed interest and interest-only payments can be good for investors looking to maximise their cash flow for other investments.
- Mortgage offset: a partial offset on this loan is allowed when the loan is paired with an interest saver account from Commonwealth Bank.
- Split Loan: you have the option to use this loan for part of the total amount borrowed and another loan for the remaining amount.
- You can make additional payments on the loan up to $10,000 per year in order to more quickly pay off the loan.
Who could benefit from this type of loan?
Fixed rate loans are a great option for those that are on a limited budget. A fixed rate loan allows you to set your weekly or monthly budget up around the payment that will be due. Additionally, if interest rates start to go up, you are saving money as your rate is fixed at the lower rate. This type of loan should be chosen if:
- You prefer to know the amount of interest that you will be paying during the first s of the loan.
- If interest rates are currently low. Locking in a loan at a low rate is recommended.
- If you are buying an investment property and are looking for a low cost home loan for the purchase of the property.
While there are many great reasons to choose this type of loan, there are also some considerations potential borrowers should make, including:
- If interest rates are currently high and expected to go down, waiting before fixing a rate may prove a good option.
- If your credit score is less than perfect, fix the issues with your credit before considering this type of loan.
- If you need to borrow more than 80% of the property value, you might be required to carry lender's mortgage insurance with this loan if you do not make at least a 20% down payment. This is a one-off payment you'll have to make when you take out your loan.
How to apply for a Commonwealth Bank Fixed Loan
Applying for this loan is easy. Click on the 'find out more' 'enquire now' or 'details' button on the bottom or right side of this page to be taken to a page where you can select to book a free appointment to discuss your options.
Once you get to this page, click 'Book Free Appointment' to be taken to the Aussie Mortgage Brokers website. Aussie Mortgage Brokers offer Commonwealth Bank Home Loans.
Once here, input the requested contact details and an Aussie Mortgage specialist will contact you at the time you specify.
Can my $100 000 blue chip shares be used an equity for a $300 000 investor home loan
Hi Katy,
Thanks for getting in touch!
You can use your blue-chip share to boost your application strength and borrowing power but it cannot be used as a deposit for the investor home loan.
Hope this helps and feel free to reach out to us again for further assistance.
Best,
Nikki