The Commonwealth Bank No Fee Variable loan requires a minimum loan amount of $150,000 and no maximum amount.
Customers can borrow up to 95 per cent of the property value, although lenders mortgage insurance may apply for those borrowing more than 80 per cent of the property value.
That said, Commonwealth Bank offers guarantor support as a feature of the No Fee Variable Loan. This means a family member can help you secure a mortgage using their own property as additional security. Doing so may mean avoiding the additional charge that is lenders mortgage insurance.
Unlimited additional repayments are permitted and repayments can be made weekly, fortnightly or monthly. However, interest-only repayments must be made monthly.
Customers can redraw on additional payments they make, as long as the minimum redraw amount is met.
No offset account is included and the loan is not available for business or renovation purposes.
Increases to the loan amount are permitted at a minimum value and are subject to approval.
The Commonwealth Bank No Fee Variable loan is good for those wanting the support and convenience of a big bank but without the ongoing loan fees.
Owner-occupiers are given the flexibility of being able to make additional repayments on their loan and the interest-only option may appeal to some investors.
The Commonwealth Bank No Fee Variable Loan may appeal to some first home buyers, or those with few savings, as this loan allows for guarantee support from a family member. This may also help borrowers to avoid the extra cost of lenders mortgage insurance.
The Commonwealth Bank No Fee Variable Loan offers the flexibility of a variable interest rate with the added convenience of a big bank.
While the advertised interest rate is higher than average, by market standards, it is one of the cheapest rates available from a Big Four bank. That, combined with no upfront or ongoing fees, makes this loan an appealing choice for the right borrower.
Whilst non-bank lenders may offer more competitive rates, the Commonwealth Bank No Fee Variable loan offers a number of features that may be attractive to those looking to repay their loan quickly, namely unrestricted additional repayments and the ability to redraw on these payments.
The Commonwealth Bank No Fee Variable Loan is available to owner-occupiers and investors. For further information about the options available, click the links below.