Review Commonwealth Bank Home Loans

Published: July 27, 2019

If you’ve found your ideal investment property or home, you’re probably looking for an affordable home loan.

Commonwealth Bank offers home buyers and investors the choice of a Variable, Fixed, and Viridian Line of Credit home loan rate. All three home loan types can be taken with a CBA Wealth Package, giving you access to additional discounts and promotions.

Review how Commonwealth Bank home loans compare to other major home loan providers in Australia.

Take note: ComparingExpert and consultants are not mortgage brokers. The information provided in this article is to help you make an informed decision. Please contact the home loan provider or financial institution for advice and guidance.

A Quick Commonwealth Bank history

CBA offers a wide range of financial services, including investment advice, fund management, insurance and home loans. Founded by the Australian Government in 1911, CommBank has over 100 years of experience in the banking industry. Currently, the company has more than 52,000 workers and over 800,000 shareholders.

Types of Commonwealth Bank home loan interest rates

Choose between several CBA home loan rates, including:

house

Extra Home Loan

A variable interest rate that provides you with the option of a 2- or 4-year introductory discount or a Life of Loan discount. The discount margin may vary from time to time, depending on campaigns offered at the time of your loan contract.

  • 2-year introductory discount: Available to new borrowings.
  • 4-year introductory discount: Only available to first time home buyers.
  • Life of Loan discount: The same interest rate discount applies for your entire loan term.
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CBA Standard Variable Rate

This home loan rate provides you with more certainty, as interest rates remain unchanged for the duration of your fixed loan term (1 to 5 years). At the end of the fixed term period, your loan converts to the Standard Variable Rate.

Fixed rate home loan

CBA Fixed Rate

This home loan rate provides you with more certainty, as interest rates remain unchanged for the duration of your fixed loan term (1 to 5 years). At the end of the fixed term period, your loan converts to the Standard Variable Rate.

Access Line of Credit

Viridian Line of Credit

Use the equity in your home for personal or investment purposes. You can also make additional repayment without having to pay any fees.

Full Feature Home Loan

Wealth Package

For a $395 annual fee, you can get a Wealth Package from CommBank and access additional discounts and promotional offers. The Wealth Package is available on Standard Variable, Fixed home loans and Viridian Line of Credit.

Benefits of CBA mortgage rates

  • Discounts and savings: With a CBA Wealth Package, you can save up to 0.70% per annum on a Standard Variable Rate and Viridian Line of Credit loan, or 0.15% per annum on Fixed Rates.
  • Split loan option: You can split your loan between a variable and fixed rate.
  • Redraw facility: If you've made additional repayments, you can redraw these funds if you need to, without having to pay any further fees.
  • Top-ups: You can apply to increase your loan with CBA Variable home loan options.
  • Additional repayments: Pay off your loan sooner by making extra payments on Standard Variable Rate home loans, Wealth Packages or a Viridian Line of Credit loan. Pay up to $10,000 a year extra on your Fixed Rate home loans. No additional charges will generally be incurred.
  • Save with an Offset Account: Link your Standard Variable Rate home loan with an Everyday Offset Account. 100% of the money in your offset account gets deducted from your loan balance, so you only get charged interest on the difference.
  • Choose how you make repayment: Pay weekly, fortnightly or monthly.
  • Receive valuable support: When you apply for a Commonwealth Bank home loan, you’ll receive support from a qualified broker throughout the entire process.
  • Cash bonus: If you switch your home loan to Commonwealth Bank you’re eligible to receive a $2,000 cashback bonus.

Information required when applying for a CommBank home loan

To be eligible for a home loan, you will generally need to:

  • Be older than 18 years,
  • Have a reliable income or show proof that you’re able to make repayments,
  • Be a permanent resident or Australian citizen.

You’ll generally need the following documentation when applying for a home loan from CBA:

  • Identification documents: For example, your passport, driver’s license or Australian proof of age card.
  • Proof of income: Payslips, your 3 most recent bank statements or an employment contract. If you're self-employed, the Lender will need your most recent ATO Notice or Assessment and personal and business tax returns, including financial statements.
  • Account statements: Three months of statements showing any loans, investments and savings not held with the Commonwealth Bank.
  • A list of your monthly expenses: For example, food, transport and clothing. The Lender will also look at your credit rating.
  • Any relevant insurance documents if you have existing insurance on the property.
  • Price of the property: If you’ve found a property, CBA will generally require a valuation of the property. Make sure to provide your conveyancer or solicitor’s contact details, name and address.

Frequently asked questions and answers

How much deposit do I need for a home loan from Commonwealth?

Generally, you need a 10% minimum deposit to be eligible for a CommBank home loan. However, the bigger your deposit, the smaller your loan will generally be and the less interest you’ll have. If the amount you are borrowing is more than 80% of the value of your property you will need to pay Lenders Mortgage Insurance.

Take note: When budgeting, remember to include upfront costs like stamp duty, legal fees, moving expenses and insurances. To determine how much you can borrow, use the CommBank home loan calculator.

How long does pre-approval take CBA?

Having the correct documentation when applying for a CBA home loan will speed-up the application process. Generally, the pre-approval process for home loans can take between 4 to 7 business days because supporting documentation must be verified, and property valuations need to be completed.

Did CBA change interest rates?

On July of 2019, the company announced that they would be adjusting their home loan rates. You can apply for a Standard Variable Rate home loan at a discount of between 0.19% and 0.25% per annum, depending on your deposit and the purpose of the home loan you apply for.

How to qualify for a Wealth Package from CBA?

If you would like to apply for a Wealth Package, you’ll have you need a Standard Variable, Fixed Rate home loan or Viridian line of credit. You will also need to borrow a minimum of $150,000.

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