Commonwealth Bank 1 Year Fixed Rate

Commonwealth 1 Year Fixed Interest Rate Loan

At times of rising interest rates, home buyers may be hesitant to take on a home loan at variable interest rates. Home loan interest rates have been rising since October 2009 although there is probably still some way to go before they reach a peak. Currently Commonwealth Bank is offering a fixed interest rate of 5.99% for the first 12 months of a new home loan.

The Features and Benefits of a Commonwealth Bank 1 Year Fixed Rate Home Loan

Although variable interest home loans are the most popular type of home loan for Australians because they generally offer more flexibility than fixed rate loans, a variable interest rate loan is not the best option for everyone at all times. A Commonwealth Bank 1 Year fixed Rate Home Loan offers a fixed rate loan combining the security of predictable repayment amounts and a competitive interest rate together with a degree of flexibility in options and repayments. The main features and benefits of this loan are:

• fixed interest rate of 5.99% for the first year. During the first year the fixed rate of 5.99% is fixed, so that the amount of repayments stays the same throughout that period. (For Commonwealth Bank standard variable rate home loans the interest rate is currently 6.82%)
• Interest rate reverts to current standard variable rate after the first year, or you have the option to choose another home loan. At the end of the first 12 months of the loan you have a chance to review your situation, considering trends in interest rates as well as your current personal and financial circumstances, and choose a home loan option that suits you best.
• Rate lock option allows the interest rate to be locked during the period between your loan application and the bank funding the loan. If you choose the rate lock option the interest rate is fixed for a period up to 90 days. There is a fee of $750 for each rate lock. This option is attractive at times when interest rates are rising, so that you can make certain that the interest rate on your loan doesn’t increase before loan arrangements are finalised.
• Additional repayments may be made on the fixed rate loan, up to a maximum of $10,000 per year without penalty.
• Split your loan into fixed and variable portions. You can be confident that repayments on the fixed portion of your loan won’t rise if interest rates rise. On the variable rate portion of your loan you have some flexible features including the ability to make unlimited additional repayments, and redraw facilities on the extra repayments.
• Interest only option is available on your fixed rate home loan. This means that you can reduce your repayment commitment and pay only the interest amount each month if your circumstances change or you need to free up some cash.
• Choose the repayment frequency that suits you best. You can make monthly, fortnightly or weekly on your loan, although interest only repayments are only available on a monthly basis.
• What fees and charges apply? There is an upfront loan establishment fee of $600, and a monthly loan service fee of $8.
• Who can apply for this loan? A Bank 1 Year fixed Rate Home Loan is available to owner-occupiers or investors who wish to borrow a minimum of $10,000.
• How much can I borrow? Applications for home loans are subject to Commonwealth Bank credit approval criteria. You can borrow up to 80% of the value of the property without the need for Lender’s Mortgage Insurance. For a loan of more than 80% of the property value you will be required to take out Mortgage Lender’s Insurance and you will be able to borrow up to of 95% of the property value if you are an owner-occupier, or up to of 90% of the property value if the loan is for an investment property.

Many home buyers choose a fixed rate home loan rather than a loan at variable rates. A fixed rate home loan would be suitable for you:

• if you want budgeting certainty, and need to know in advance exactly what your commitments will be so that you can plan your finances;
• if your budget is tight and you’re whether you could comfortably afford higher monthly mortgage repayments; or
• if you think interest rates will rise and you want to save on interest by locking in a low rate of interest for a fixed period.

A Commonwealth Bank 1 Year fixed Rate Home Loan offers a competitive rate of interest together with some flexible features and the benefit of predictable repayment amounts for 12 months.

Read the Commonwealth Bank 1 Year Fixed Rate terms and conditions.

• Comparison of Top 10 Credit Card Offers

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