Accessing Your Mortgage Repayments
It is comforting to know that you can pay additional funds off your Commonwealth Bank home loans. This, along with making more regular repayments such as weekly and fortnightly, instead of the more traditional monthly, goes a long way to reducing the term of your loan. By reducing the term of your loan you can save a lot of money in interest payments, sometime many thousands of dollars.
It is equally as comforting to know that in many cases you may be able redraw some of that money in order to pay for some important happening that you hadn’t anticipated occurring. You may even need some temporary relief from making any repayments at all because of some financial restraints and if you have built up credit in your home loan, the extra amount you have deposited there could see you through such hard times.
If the redraw feature is available on your particular home loan you will be able to access your additional funds online through the Commonwealth Bank home loans NetBank, by phoning 132224, selected ATM’s, Australia Post, EFTPOS, EFTPOB terminals, or by personally applying through the many Commonwealth Bank branches.
The benefits of being able to redraw any additional payments you have made over and above the amount required under the terms of the loan, is not restricted to hardship cases only.
A redraw feature can build asset value.
The equity you have built up in this manner can also be used to increase the value of your investment by financing any renovation work, building extra rooms or a veranda, or even landscaping the garden area. You might even find the money you have put away useful in paying the deposit on an investment property to further build your investment property portfolio.
The ability to redraw can be a cushion against a tightening financial environment.
Sometimes you will find that you need to improve your cash flow and that a period free from having to make regular repayments off your home loan would be of great assistance. If you have built up equity in your home through making additional repayments you may well find yourself able to arrange a repayment vacation for anything from three months to a year. During this period you will not have to make any further payments off your Commonwealth Bank home loans. This is an important feature that could get you back on track again after you have successfully taken care of any planned or unplanned occurrence that made your financial situation temporarily tight.
You can apply for a Commonwealth Bank home loans repayment holiday by phoning 13224 or by visiting one of the bank’s thousand plus branches that you will find distributed throughout Australia. If you wish you can also access a Repayment Holiday Request form and take it along to the branch with you.
Commonwealth Bank home loans also look after their borrowers in other ways when some unforeseen occurrence makes repayments hard to find.
Commonwealth Bank home loans are flexible in that if you find your financial situation has changed from when you first took out the loan, for any number of reasons, and the meeting of the required repayments are causing you hardship, you are always welcome to discuss your changed circumstances with the bank. You will find that you may be able extend the term of your home loan which would effectively lower your regular repayments.
The details of two main Commonwealth Bank home loans are as follows:
- The Standard Variable Rate and Introductory Rate Home/investment Home Loan has a redraw facility available, there is no fee charged for drawing online or by phone but there is a fee of $5 to pay if accessing the funds via one of the thousand plus Commonwealth Bank branches throughout Australia. The minimum amount you can withdraw online or over the phone at any one time is $500 and the minimum amount you can withdraw from a branch is $1,000.
- The Economiser Home/Investment Home Loan (Includes 3 year Special Economiser) also has a redraw feature included but there is a fee of $50 to redraw online, over the phone or from a branch. Online and phone redraws have a minimum of $500 whereas the minimum you can redraw in a branch is $2,000.
Repayment holiday features are not available when a second or subsequent mortgage is involved with another lender that is listed behind that of the Commonwealth Bank mortgage.
Neither a redraw nor a repayment holiday feature is available on any interest only repayment home loan and when they are available it is always dependent on sufficient funds having been previously deposited.
Related posts:
- How to Use Additional Repayments and Redraw Loan Features to Pay Off Your Loan Sooner
- How to pause your Home Loan Repayments
- Commonwealth Bank Economiser Discounted Base Variable Loan
- Commonwealth Bank 3 Year Special Economiser Discounted Base Variable Rate
- Commonwealth Bank Complete Home Loan Standard
- Commonwealth Bank Interest In Advance Fixed Rate Investment Home Loan
- Commonwealth 12 Month Discounted Variable Rate
- Mortgage Repayment Management Tips
- Bank of Queensland Line of Credit HLPP $250k +
- CBA Loan Options for the Self Employed
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