The Commonwealth Bank is one of the biggest lenders in Australia. It's this size and strength that allows it to offer a range of competitive home loan products.
The Commonwealth Bank was founded by the Australian Government in 1911 and began banking operations in 1912. At that time it was empowered by the government of the day to offer savings and general banking for the benefit of Australian people. Since then it has been privatised, and today it has more than 800,000 shareholders and employs 52,000 staff. It offers the full spectrum of financial services, including a wide range of home loans and other financial services including credit cards.
It's easy to feel overwhelmed by the size and reach of a big bank; however, when you take the time to learn about the products and services behind the perceptions you may find that Commonwealth has home loans with just the right extras to help you manage your mortgage or your investment towards your personal goals. They also operate fully-owned subsidiaries such as Bankwest, offering cost-effective home loans through this brand.
Compare Commonwealth Bank home loans
What home loans are available?
There are only a few different types of loans available in Australia. It's the lenders themselves who put their own touch on the products and customise their loans with a variety of features, discounts and specialities. The Commonwealth Bank is a lender which excels in the range of products on offer:
Standard Variable Rate Home Loan.
Standard variable rate home loans are some of the most popular products in Australia, and Commonwealth Bank has put together a very competitive offer with its standard variable rate. This means you have the ability to customise your loan and enjoy features to save you time and money, such as a redraw facility, a 100% offset account, fee-free transaction account and optional credit card. This loan is available for those looking to buy a home or investment property.
No Fee Variable Rate Home Loan.
If you’re more interested in the rate and not necessarily the features of the Standard Variable Rate Home Loan, the basic option from Commonwealth could warrant a look. This loan charges no up-front or ongoing fees for the entire life of the loan. It is repaid at a variable interest rate with full transparency and flexibility. There are also add-on options for you to choose from that will help you tailor the loan to your own particular needs, such as a low fee everyday account and credit card, but if these aren't of interest to you, you can stick with the basic No Fee Variable Rate Home Loan and still save.
Fixed Rate Home Loan.
Commonwealth Bank can also help you budget for your home loan repayments over one to five years, seven, 10 or even 15 years with a fixed rate. You can even lock in the rate from the time you apply for your loan to the time it is approved. The Fixed Rate Home Loan from Commonwealth Bank could be suitable for a property investor, with the assurance of being able to budget into the future and plan your finances without having to worry about rising interest rates. This means you will be able to know exactly what your monthly repayments will be when you lock in your interest rate for one, five, seven, 10 or 15 years. There is an establishment fee of $600, an ongoing annual fee of $8 and a Rate Lock fee of $750 (available only for 1-5 Year Fixed Rate loans) to pay.
Viridian Line of Credit.
With the opportunity to consolidate all of your debts into a line of credit loan, you can enjoy freedom and flexibility as you don’t need to make set principal repayments. This is an all-in-one home loan that will allow you to consolidate all your finances into the one package and put you in control of your equity. With the Viridian Line of Credit you'll be able to handle your home loan, daily transactions and savings all in the one place. If you use these features to your advantage you will be able to pay your loan off much faster because the funds from your savings and income are directly offset against your principle loan amount each day they sit in your account waiting to be used.
The Viridian Line of Credit
Introductory Rate Home Loan.
Buying a new home or your first investment property can be a challenging adjustment. To help make things that little bit easier Commonwealth Bank offers all new customers a low introductory rate for the first 12 months. You will have a choice of accepting the 12 month discounted variable interest rate or fixed interest rate. This loan also carries with it a six month pre-approval, so you have time to find your dream home. You'll also have the choice of either fixed or variable interest rates for security or flexibility, a loan term of up to 30 years for affordable repayments and a flexible repayment option so you can match your repayments to your income cycle.
The Introductory Rate Home Loan
What features are offered?
- Equity unlock. This gives you the chance to unlock all of the hard work you have put into your home to enjoy your retirement, and will ensure you don’t borrow more than the value of your home so you can avoid negative equity. The Commonwealth Bank Equity Unlock Loan is available to applicants 65 years and over.
- Customise with loan add-ons. Commonwealth offer a range of add-ons which include an offset account, a fee-free credit card or a deposit guarantee to make securing your dream home easier even if you can’t provide a deposit on the spot.
- Investment loan options. You can customise each Commonwealth Bank home loan to become an investment loan and choose interest-only repayments, or stick with principal and interest charges. You can also choose to pay your interest in advance to reap tax benefits sooner, and if you pay the total year's interest in advance before 30 June, you can also receive a discounted interest rate.
What purposes can I borrow funds for?
Commonwealth Bank realises that buying your first home can sometimes be a daunting experience. However, when you work with the Commonwealth Bank home loan staff, you will have friendly and expert advice to help you understand the process and prepare you for what needs to be done.
Plus, if you already have a mortgage but you think there could be a better deal out there, you can switch and refinance with a Commonwealth Bank home loan. Even if you’re not sure what is involved in the refinancing process, or if making the move is worthwhile in your situation, you will find staff willing to help you make the decision, process the switch and potentially save you tens of thousands of dollars over the life of the loan.
Even if you are planning to build your own home, or carry out renovations, as Australia's largest home loan lender, Commonwealth Bank Home Loans will be able to give you options designed specifically for the project you have in mind.
If you want to find out more about the benefits of working with one of the most affordable and friendly of the big four banks in Australia, start by comparing the range of Commonwealth Bank home loans.
How to apply for a Commonwealth Bank Home Loan
Low doc, or low documentation home loans, have made it easier for many Commonwealth Bank home loans applicants to get help by recognising the fact that if you're self employed, you often don't receive your income on a regular basis but when you do it can arrive in large amounts. This pattern of earning an income is in stark contrast to the majority of home buyers who receive a regular salary, and because of this are able to comfortably repay their home loans on a regular basis.
Commonwealth Bank low doc loans afford more flexibility by allowing self-employed people to repay their loan in large amounts without penalty when more money is available for them to be able to do so. This flexibility helps when you try to repay the loan, but the problem remains that the bank still has to ascertain whether or not you are financially able to service the loan and to what extent they can extend credit.
To enable Commonwealth Bank home loans to better assess the capabilities of their potential self employed and business owner clients ability to accommodate a low doc home loan, there have been certain conditions laid down that must be met. These criteria include the following:
- You will have to have been self-employed in the same industry for a minimum of 12 months and to prove this you will have to supply the bank with your Australian Business Number (ABN) or a Certificate of Incorporation, or both.
- Your borrowing will be restricted to a maximum of 80% of the value of the property you are planning on purchasing.
- If you wish to borrow an amount greater than 60% of the value of the property you intend to buy, you will be required to take out lenders mortgage insurance (LMI) as well as provide the bank with copies of your Business Activity Statements (BAS) that have been verified by the Australian Taxation Office, for the preceding 12 months.
- If your income exceeds $75,000 a year you will need to show that you have been registered for GST (Goods and Services Tax) for a minimum of 12 months.
- If your income is less than $75,000 you won't have to provide GST registration proof, but may have to provide bank statements showing details of your main business or personal financial transactions over the previous six months.
- The Commonwealth Bank home loans Wealth Package is available to you if your borrowing amounts to 60% or less than the valuation of the property being purchased. This valuation will be determined by the bank and is not reliant on the market price.
Commonwealth Bank low doc arrangements are available on all types of home loans offered by the bank to its home buying customers except the following:
- A home loan carrying introductory interest rates.
- The 3 year Special Economiser product.
- Equity Unlock Loans for seniors.
All low doc home loan applicants are subject to the Commonwealth Bank's normal credit approval requirements and full terms and conditions will be included in the loan offer when it is made available.