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2.84%
Variable
2.84%
Owner Occupier Discounted Variable Rate
4.14%
Fixed - 5 years
5.01%
Pros
Cons
Maximum LVR 80% | Interest rate structure Fixed - 5 years |
Borrowing range $10k - $100m Calculate how much you can borrow | Total Repayments |
Principal & interest | Interest only |
Loan term range 1 - 30 years | Offset account No |
Extra repayments Allowed with restrictions | Redraw facility |
Allows split interest | Suitable For Investors |
Applicable States ACT, NSW, NT, QLD, SA, TAS, VIC, WA | |
Estimated upfront fees $800 | Application fee $600 |
Settlement fee $200 | Valuation fee $0 |
Legal fee $0 | Ongoing fee $8 |
Discharge fee $350 | Property Type |
SMSF Trustee | Minimum SMSF Amount |
Other Restrictions
Loan interest rate applied on balance in Offset account is discounted by 1.5% pa. Normal loan rate applies on amount of outstanding loan less balance in Offset account.
Commonwealth Bank isn’t known for offering low interest rates or for trying to undercut its competitors. Instead, Commonwealth Bank home loan rates tend to be middle of the market – definitely not the cheapest but not the dearest either.
CBA has a range of home loan products that come with a range of different interest rates. As a general rule, owner-occupiers get lower interest rates than investors; principal-and-interest borrowers get lower interest rates than interest-only borrowers; and borrowers with lower LVRs get lower interest rates than borrowers with high LVRs.
Commonwealth Bank also puts different prices on its variable interest rates and its fixed interest rates. There are also differences within its fixed-rate mortgages, which can be for either one, two, three, four, five or seven years. As a general rule, the longer you want to fix, the higher the interest rate.
A fixed rate home loan is a loan where the interest rate is set for a certain amount of time, usually between one and 15 years. The advantage of a fixed rate is that you know exactly how much your repayments will be for the duration of the fixed term. There are some disadvantages to fixing that you need to be aware of. Some products won’t let you make extra repayments, or offer tools such as an offset account to help you reduce your interest, while others will charge a significant break fee if you decide to terminate the loan before the fixed period finishes.
A variable rate home loan is one where the interest rate can and will change over the course of your loan. The rate is determined by your lender, not the Reserve Bank of Australia, so while the cash rate might go down, your bank may decide not to follow suit, although they do broadly follow market conditions. One of the upsides of variable rates is that they are typically more flexible than their fixed rate counterparts which means that a lot of these products will let you make extra repayments and offer features such as offset accounts.
Split rates home loans
A split loan lets you fix a portion of your loan, and leave the remainder on a variable rate so you get a bet each way on fixed and variable rates. A split loan is a good option for someone who wants the peace of mind that regular repayments can provide but still wants to retain some of the additional features variable loans typically provide such as an offset account. Of course, with most things in life, split loans are still a trade-off. If the variable rate goes down, for example, the lower interest rates will only apply to the section that you didn’t fix.
