Get a discount off your interest rate and fees and a range of other benefits in exchange for one annual package fee
The Commonwealth Bank Fixed Rate Home Loan with Wealth Package gives you a discount on your home loan. On top of this you have establishment and service fees waived for other loans, transaction accounts and credit cards. You can also get discounts on personal loan interest rates.
$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 06 April 2020 and have your loan funded by 12 June 2020.
| Product Name | Commonwealth Bank Wealth Package Fixed Home Loan |
|---|---|
| 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 | $0 |
|---|---|
| Lender's Legal Fee | $0 |
| Valuation Fee | $0 |
| Ongoing Fees | $395 p.a. |
| Settlement Fee | $200 |
| Discharge Fee | $350 |
Pros
- $0 application fee
- Get a discount off the advertised fixed rates for choosing the Wealth Package
- Link a partial offset account to your home loan to reduce interest
- Make extra payments each year during the fixed term without penalty
- Discounts on other banking products with the Wealth Package
Cons
- There is a $395 annual package fee
- The offset account has a limit per withdrawal and also per deposit
- $200 settlement fee
- $350 discharge fee for closing your loan
- $750 rate lock fee to lock in the advertised rate at time of application
Details 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 that requires all the details of your income, assets and debts.
The loan is suitable for owner occupiers, investors and can also be used to purchase land or for bridging finance purposes. It is not available for business purposes, purchasing an off-the-plan property or construction.
Features of the Commonwealth Bank Fixed Rate Home Loan with Wealth Package
- Loan-to-value ratio (LVR) and loan term: This loan has a maximum loan term of 30 years. This loan allows you to borrow up to 80% of the value of the property without lenders mortgage insurance (LMI). If you wish to borrow more than this you have to pay LMI.
- 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 lowers your repayments each month, which may be beneficial for extra cash flow to renovate or invest in alternative assets. However, you should be aware that you won't be reducing the principal on your loan while you make interest-only payments.
- Repayment schedule: If you choose the interest-only option, your repayments will need to be paid each month. Borrowers paying principal and interest repayments can choose weekly, fortnightly or monthly repayment schedules.
- 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. If you exceed this amount you may be charged break costs and administration fees.
- Wealth Package discounts: Package your loan and receive package discounts on other banking products. This includes waived fees for some personal loans, credit cards and transaction accounts. Discounts are also available on some insurances for car, home and loans. Rate discounts are also available for 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. If rates decrease the variable rate will maximise any savings.
- Partial offset account: You can link a Commonwealth Mortgage Interest Saver Account (MISA) to this loan. The balance left in the MISA offsets the same amount in your loan by 1.5% p.a. For example, if your MISA balance is $5,000, then $5,000 of your home loan balance would have the interest rate decreased by 1.5%. 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 $1,000 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.
Fees
There is $0 application fee with this loan. Below are some of the other fees that may be charged:
- Annual fee: $395. This is a package fee that replaces other fees and allows for package discounts.
- Rate lock: $750. Your interest rate can change up until you sign your loan documents. This fee is to lock in the advertised rate at the time of application.
- Settlement fee: $200. This is a fee charged for the creation of your loan accounts.
- Discharge fee: $350. This is for processing the closing of your loan accounts with the bank.
How to enquire about the Commonwealth Bank Fixed Rate Home Loan with Wealth Package
If the Commonwealth Bank Fixed Rate Home Loan with Wealth Package interests you, click on the green 'Go to site' or 'Enquire' button on this page. You will then be either securely transferred to the Commonwealth Bank website to enquire directly with them. Or you will be asked to fill in your details for a mortgage broker to contact you about your lending needs.
If as a first home buyer, buying a reverse mortgage on the family home out, do I qualify for the first home buyer’s grant?
Hi Tony,
Thank you for getting in touch with Finder.
Please note that each state has their own eligibility requirements on getting FHOG. You may use this page as your guide in learning your state’s First Home Owners Grant qualification.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
Applying for first home loan, is there any flexibility in minimum deposit as we didn’t know we would need to put $5000 deposit down on house and land
Hi Chris,
Thank you for your question and for contacting finder.com.au we are a financial comparison website and general information service we are not mortgage specialists so can only offer general advice.
Generally, lenders have different policies regarding the minimum deposit they require from borrowers to qualify for a home loan. For a guide about the deposit, you may like to find this article useful. Moreover, it’s best to contact the bank/lender and discuss your options on the deposit.
Cheers,
May
can I refinance when in a fixed term loan
Hi Megan,
thanks for the question.
You can refinance from a fixed rate home loan into another, but be aware that you’ll need to generally pay break costs when leaving a fixed rate home loan before the end of the fixed term. These are worked out with a mathematical formula, so if you’re thinking about leaving your fixed rate home loan for a new home loan, it’s a good idea to contact your lender and ask them for a quote. You can read more about this fee here.
I hope this helps,
Marc.
I wonder why I don’t have any Home Loan with you at the moment, but you still charged me $ 395.00 for Commonwealth Bank Wealth Package on 12-5-2015. Would you please clarify this matter for me.
Thank you very much and looking forward to hearing from you soonest.
Kind regards,
Tien
Hi Tien,
Thanks for reaching out.
You’ve come through to finder.com.au which is an online comparison website. To follow up with your home loan application, you’ll need to contact the Commonwealth Bank directly.
Thanks,
Belinda