Compare
Commonwealth 12 Month Discounted Variable Rate
Posted July 22nd, 2010
and last modified January 31st, 2012
What happens when I click Enquire Now?
- Clicking Enquire Now will take you to the lender's website
- After completing the contact form, a mortgage expert will contact you
- The mortgage expert will ensure you find the right loan, calculate your repayments, and explains all the associated fees
- After going through the enquiry process you will be able to know how much you can borrow, begin your application when you are ready to apply and be approved for a home loan
The Commonwealth 12 Month Discounted Variable Loan
Buying a new home or investment property can be a life changing experience. You have a lot of expenses during the first year of home ownership, and a home loan offering discounted interest rates for the first twelve months could free up cash that you can use for other purposes, such as furniture or carpets. If you’re looking for a loan for a new home or investment property a Commonwealth Bank’s 12 Month Discounted Variable Rate home loan might make the first twelve months of home ownership a little easier.
Features of the Commonwealth Bank 12 Month Discounted Variable Rate home loan
Commonwealth Bank has an introductory offer of discounted interest rates on home loans. Among the main features of the loan are:
- The loan reverts to the standard variable rate at the end of the twelve month introductory period, unless you prefer another Commonwealth bank home loan option.
- Loan splitting is allowed, so that you can have part of your loan on fixed interest rates and part on variable rates. You can budget with confidence that the repayments on the fixed rate portion of your loan won’t change even if interest rates rise, yet retain benefit of flexible loan features that help you to save on the overall cost of your loan.
- Interest only option is available, so that repayments are reduced to the interest component. Interest only repayments are available for between one and 15 years for investment homes or between one and ten years for owner-occupied properties. This arrangement is attractive to buyers of investment properties who want to minimise their monthly repayments, but an owner-occupier may also choose interest only terms to improve cash flow.
- Flexible repayment options are available, with weekly, fortnightly or monthly repayment periods for principal and interest loans. Interest only repayments must be made on a monthly basis.
- Additional repayments may be made to reduce the length of your loan and save on interest. You can make unlimited extra repayments without penalty, so you might choose to pay a little extra each month or deposit lump sums such as tax refunds into your loan account.
- Redraw of additional repayments is allowed, so that you can access the additional funds if you need them. Over the counter redraws must be at least $1,000 and attract a $5 fee, and electronic redraws are fee-free with a minimum of $500 per redraw. If you have made additional repayments into your loan account you may take a Repayment Holiday, so that you suspend repayments for a nominated period from three to twelve months. You might find it helpful to take a Repayment Holiday if your circumstances change, for example when income is lower during maternity leave.
- Who is eligible to apply? You are eligible to apply if you are wishing to borrow $10,000 or more over up to 30 years to buy owner occupied housing or investment housing.
- How much can I borrow? You can borrow up to 80% of the property’s value without lender’s mortgage insurance. With lender’s mortgage insurance you can borrow up to 95% of the property’s value for an owner occupier loan or up to 90% of the value of an investment property.
- What are the fees and charges? There is a loan establishment fee of $600 and an ongoing loan service fee of $8 per month. Rate Locks are charged at $750 each.
Commonwealth Bank 12 Month Discounted Variable Rate home loan provides savings on interest during that critical first year of a home loan. The loan also has a host of flexible features that could make managing your money easier after the introductory discount period is over.
Read the Commonwealth 12 Month Discounted Variable Rate terms and conditions.
| Minimum Loan Amount | $10,000 | |
|---|---|---|
| Maximum LVR | 80% | |
| Maximum Insured LVR | 80% | |
| Mortgage Offset Account | Yes | |
| Loan Redraw Facility | Yes | |
| Split Loan Facility | No | |
| Fixed Interest Option | No |
| Interest Rate Type | Variable | |
|---|---|---|
| Interest Rate | 6.31% | |
| Comparison Rate | 7.08% | |
| Repayment Type | Principle & Interest | |
| Repayment Frequency | Weekly | |
| Extra Repayments | Yes |
| Application Fee | $600 | |
|---|---|---|
| Legal Fee | $0 | |
| Valuation Fee | $0 | |
| Service Fee | $8.00 | |
| Settlement Fee | $0 | |
| Exit Fee | $350 |
Top Home Loans
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing | |
|---|---|---|---|---|---|---|---|
 Loans.com.au - Dream Catcher | A home loan offer with a $0 application fee and one of the lowest available home loan interest rates. | 5.85% | 6.21% | $0 / $375 | 80% | $50,000 / $750,000 |
 
|
 Bankwest Online Home Loan | A low interest rate home loan with a $0 application fee and ongoing maintenance fees. This offer is exclusively available by applying online. | 5.97% | 5.97% | $0 / $0 | 80% | $100,000 / $1,000,000 |
|
 Illawarra Home Loans Bank Beater Home Loan | A low variable rate, beaten down even further by 0.05% p.a. after 5 years. | 6.07% | 6.35% | $0 / $345 | 90% | $250,000 / $1,000,000 |
|
 State Custodians Mortgage Company Standard Variable Offset Loan | Awarded the 2011 Non bank Lender of the Year this feature-packed loan rewards customers with a bonus rate drop of 0.25% after 5 years. | 6.02% | 6.23% | $0 / $345 | 95% | $150,000 / $1,000,000 |
|
Ask A Question About This Product