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Commonwealth Bank Complete Home Loan Standard
Posted June 18th, 2010
and last modified December 9th, 2011
Guide to the Commonwealth Bank Complete Home Loan Standard
If your home loan needs are simple you don’t need a complicated loan product with expensive features you never use. If you are looking for a standard home loan with some useful practical features that will help you save money, you will be interested in the Commonwealth bank Standard Variable home loan.
| Home Loan | Details | Interest Rate (p.a.) | Comp Rate^ (p.a.) | App Fee / Ongoing Fee | Max LVR | Min & Max Borrowing |
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Features of the Commonwealth Bank Commonwealth Bank Complete Home Loan Standard
This loan is a standard variable rate loan for the purchase of a home or investment home. Among the main features of the loan are:
- Variable interest rate, currently 7.01%. The benefit of variable interest rate loans is that they provide flexibility of payments so that additional repayments can be deposited to your loan account, reducing the length of the loan and saving on loan interest.
- Split loan is allowed, so that part of your loan on variable interest rates and part on fixed rates. If you wish to avoid monthly repayments rising when interest rates rise, a fixed rate has set monthly repayment amounts so that you can budget in advance and know that loan repayments won’t become unmanageable.
- Interest only option is available, for loans between 1 and 10 years for owner occupiers and 1 and 15 years for investors. With this option monthly repayments are reduced to the interest part. Buyers of investment properties often take interest only terms so that their monthly repayments are minimised, but owner occupiers may also wish to pay interest only on their home loan for a period if their financial circumstances change or if they need to free up cash for other purposes.
- Flexible repayment periods, with weekly, fortnightly or monthly repayment options are available for principal and interest loans. For interest only loans, repayments on a monthly basis are required.
- Additional repayments may be deposited into your loan account, reducing the length of your loan and saving on interest. Unlimited additional repayments may be made without penalty. This feature allows you to apply any spare funds to your home loan where they save you money, while still keeping the funds accessible if needed.
- Additional repayments may be redrawn, so that the additional funds you have deposited are available if you need them. A $5 fee is payable when funds are withdrawn over the counter and there is a minimum redraw of $1,000. If you redraw electronically the minimum amount of redraw is $500 and there is no fee for the transaction.
- Repayment holidays are allowed. If you have made additional payments into your loan your repayments can be suspended for a nominated period, giving you flexibility if your circumstances change.
- Who is eligible to apply? Commonwealth Bank Complete Home Loan Standard is available for owner occupiers or investors wishing to borrow $10,000 or more over up to 30 years for the purchase of housing property. Up to 97% of the property value can be borrowed without mortgage insurance. With mortgage insurance up to 97% of the property value can be borrowed by an owner occupier, and up to 90% of the property value can be borrowed by an investor.
- What are the fees and charges? There is an upfront fee of $600 to establish the loan and a monthly loan service fee of $8.
Commonwealth Bank Complete Home Loan Standard is a standard variable interest rate home loan with some useful flexible features that provide very practical ways of saving on interest and managing your finances.
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