The Commonwealth Bank of Australia has its roots in Australia, but now does business in New Zealand, Asia, the UK and the US. It’s the largest bank in the Southern Hemisphere, and one of the largest companies in Australia.
Commonwealth is one of the “big four” Australian banks along with ANZ, Westpac, and National Australia Bank.
Australian government established the Commonwealth Bank of Australia in 1911. It was the first bank in Australian history to have a government guarantee as its backing.
The first Commonwealth Bank branch opened its doors in Melbourne in 1912. The bank expanded rapidly from there, and by the next year had a branch in all six states.
From 1920 to 1960, the Commonwealth Bank of Australia served as Australia’s central bank as well as a commercial bank. As a result of the ensuing controversy, the government eventually transferred central bank duties to the Reserve Bank of Australia.
After many changes and adjustments, the Commonwealth Bank now offers customers across Australia and the world retail, premium business, and wealth management services.
The Commonwealth Bank offers a few different types of loans, whether you’re looking for a personal loan or a home loan.
Their options for home loans include:
- Standard Variable Rate Loans
- Fixed Rate Loans
- Viridian Line of Credit Loans
- No Fee Variable Rate Loans
- Economiser Loans
- Extra Home Loans
Commonwealth also offers the following options for personal loans:
- Fixed Rate Loans
- Variable Rate Loans
- Secured Car Loans
Commonwealth offers a long list of features with their loans. You can benefit from some or all of the following depending on which loan type you feel is best for you.
Their options for home loans include:
- Split Loan
- Additional Repayments
- Redraw Facilities
- Repayment Holiday
- Principal & Interest or Interest Only Repayments
- Interest in Advance
- Direct Salary Credit
- Offset Account
- Rate Lock
- Low Documentation Loans
There are several loan types you can choose when borrowing from Commonwealth Bank. Each has options that include many of the features listed above.
Commonwealth also offers advisor services if you need any assistance choosing which loan will work best for you.
Standard Variable Rate
The standard variable rate loan is the first loan option Commonwealth Bank offers. You’ll gain access to almost all of the features listed above, as well as discounts with Commonwealth’s Wealth Package.
You can also lock in your rate for one year with the standard variable rate loan type for a one-time $750 fee. Additional repayments are unlimited and waive various fees depending on your package option and credit card provider.
Fixed rate loans are some of the other popular loan types Commonwealth Bank provides. You can choose from a variety of plans with features that cater towards your individual needs.
With the fixed rate loan, you’ll be able to lock-in your rate for one to five years when you apply. You can make extra repayments, but Commonwealth caps them at $10,000 per year.
Viridian Line of Credit
Commonwealth offers the Viridian line of credit for those who want to take out a line of credit on the equity of their home.
You can use these funds to purchase another piece of property, renovate your home, or complete any number of projects that need financial backing.
As long as you keep up with the interest and fees, you can take advantage of Commonwealth’s flexible repayment schedule by delaying principal repayments. There’s no minimum loan term, so you can take out a short-term loan if you need some quick cash.
No-Fee Variable Rate
Commonwealth provides borrowers with the option of simplifying their variable rate loan by taking away the fees.
Choosing this type of loan can make keeping up with your payments simpler since you won’t be surprised by any additional fees at the end of the year. You’ll still have access to many of Commonweath’s loan features with a no-fee variable rate loan.
The economiser loan offers a low base rate for the first three years, then transfers to the standard variable rate system. You will have all of the same options with an economiser loan as you do with a variable rate loan, but you can’t lock-in your rate for a year.
Extra repayments are unlimited with the economiser loan, and there’s no fee for repaying the entirety of your loan early. Redraw facilities are available free of charge.
Extra Home Loan
The Extra home loan is geared toward first-time home buyers. You’ll receive a loan discount with zero establishment or monthly fees, depending on which option you select.
With the Extra home loan option, you can choose to receive a two-year, four-year, or life of the loan discount. You’ll also be able to make unlimited extra repayments and will gain access to the redraw facility feature.
Commonwealth also provides funds if you need a personal loan for a car or another substantial purchase.
You can choose a variable rate loan, a fixed rate loan, or a secured car loan. You can borrow anywhere from $4,000 to $50,000 on fixed and variable rate loans, and make extra repayments on all loans without incurring a fee.
Secured loans cap how much you can repay in a year (at $1,000). The trade-off is that you’ll pay a lower interest rate by using your car as security.
To apply for a home loan through Commonwealth Bank, you’ll have to go into one of their locations and chat with an advisor.
You’ll need to bring the standard loan request information such as identification, proof of income, and other debts.
The advisor will work with you to find the best loan that fits your needs, as well as one that you’ll qualify for without any additional hassle.
Some other documents you might need to bring include:
- Copies of your bank statements from the last three months (unless you already have your primary account with CommBank)
- Self-employed borrowers: bring a copy of your tax return, financials, and ATO assessments from the last two years
- Lease agreement and bank statements if you own rental property
- Building tender and specifications if you’re building a home
- Insurance policy if you own property
- Calculation of your living expenses
When Commonwealth Bank approves your loan, they’ll send you the contract for you to review. If everything looks good, let them know, and they’ll get your loan set up.
Once the funds are available in your account, you’ll receive a confirmation notice from Commonwealth.
Commonwealth offers redraw facilities for all of their applicable loan options. Whether you want to consolidate your debt by borrowing more money or withdraw some of your early repayments, Commonwealth will allow you to do so without a fee.
The bank also makes redrawing funds easy through their app. If you log into the CommBank or NetBank app, you can simply transfer the funds to the account you need.
You can make extra repayments on your loan through Commonwealth, though they cap how much you can pay on some loan types.
If you have a variable rate loan, you can repay an unlimited amount in a year. If you pay too much and need some money back, you can always withdraw some of your funds through their $0 redraw facility feature.
Commonwealth caps how much money you can repay on fixed-rate loans, however. You can only repay $10,000 a year for each year your rate is fixed before you incur a fee.
The bank will only charge you an early repayment fee on variable rate loans if you repay the entirety of the loan during the one-year rate locked window.