Manage all of your finances from one convenient account while using your home’s equity to build on your wealth.
When you take advantage of the Commonwealth Bank Viridian Line of Credit you are able to use your existing home’s value to meet your financial goals. You have the flexibility to withdraw the funds you need and use them to help ensure your future financial stability.
This loan is suitable for existing homeowners. If you are a first-time home buyer, Commonwealth Bank has home loan packages that can help you finance your first purchase.
$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 30 November 2018 and have your loan funded by 31 January 2019.
|Product Name||Commonwealth Bank Viridian Line of Credit|
|Interest Rate Type||Variable|
|Comp Rate^ (p.a.)|
|Minimum Loan Amount||$20,000|
|Maximum Loan Amount||$1,000,000|
|Maximum Loan Term||30 years|
|Maximum Insured LVR||80%|
|Mortgage Offset Account||No|
|Mortgage 100% Offset||No|
|Loan Redraw Facility||Yes|
|Split Loan Facility||Yes|
|Fixed Interest Option||No|
|Suitable for Investment||Yes|
|Available as equity loan/line of credit||Yes|
|Repayment Type||Principal & Interest and Interest Only Options|
|Ongoing Fees||$12 monthly ($144 p.a.)|
- Redraw Facility.
- Extra repayments are available.
- Establishment fee of $600.
- There is a $12 per month account fee.
Things to consider about Commonwealth Bank Viridian Line of Credit.
With a line of credit you are combining your home loan with your savings and using it to manage your spending. Your finances are consolidated into one account for easy manageability. The funds accessed are only to be used for personal purposes, including investments and land purchases. Excluded uses are for business purposes or construction projects.
The terms of repayments for this loan are flexible, allowing you to make monthly interest repayments only or additional repayments towards the principal and interest. You are in control of how the funds are spent and how pay them back.
Features of the Commonwealth Bank Viridian Line of Credit
- Loan-to-Value Ratio (LVR). You can qualify for up to 60% of the home’s value and not be subject to Lenders Mortgage Insurance (LMI) or low deposit premium (LDP). If you borrow above 60% LVR and one of those additional charges will be applied.
- Loan terms. There are no limits to the terms of this line of credit. You can continue to use it and pay into it as your circumstances see fit.
- Repayment frequency. You can make monthly payments on this loan to pay it off.
- Repayment types. You must meet the minimum interest payments due on your loan each month, but apart from this no principal payments are required. Keep in mind that not paying off the principal of your loan will mean your loan will not get paid off over time.
- Redraw. You can redraw funds at any time and for any amount, subject to your credit approval.
- Loan amount. The minimum amount you are allowed for the line of credit is $20,000. The maximum amount is dependent on your finances and available equity in the property.
Fees you can avoid
- Legal fee. There are no legal fees charged to the borrower for the preparation of the line of credit.
- Valuation fee.
The Commonwealth Bank will not charge a separate fee for the valuation of the property being used as security.
Fees you can’t avoid
- Application fee. You will be responsible for paying a one-time fee of $600 for preparing the paperwork.
- Settlement fee. There will be a $200 charge when the line of credit is settled.
- Monthly fee. Your account will be charged $12 a month for its maintenance.
- Discharge fee. $350 will be charged when you discharge the loan.
How to apply for the Commonwealth Bank Viridian Line of Credit
In order for the Commonwealth Bank to consider you for this line of credit, CBA will first ascertain that you meet certain eligibility criteria:
You must be at least 18 years of age to be considered for this product.
- Secured property.
You will need to be an existing homeowner to apply for this line of credit.
The Commonwealth Bank recommends that you have the following information readily available before proceeding with a loan application:
- Driver’s licence.
Your driver’s licence or other forms of photo identification will be requested.
To show employment history, supply copies of your last three months’ worth of bank statements.
A detailed list of all of your monthly living expenses including utilities and other loan repayments.
Homeowners looking for ways to invest in other areas may find it easy to use their home’s equity to fund them. To make sure that this offer gives you all the features you need to make it a successful choice for you, compare it with what other lending institutions are offering.
Know how much you want to borrow? Use our calculator to find out what your repayments will be
Enquire about this home loan