Home loans

Q. How do I apply for a Commonwealth Bank Home, or Investment Home Loan?

A.        Apply online.

A.        Ask one of our home loan consultants to contact you: Contact Me.

A.        Request an appointment with a Mobile Banker.

A.        Call us on 13 2224 between 8am and 10pm, 365 days a year.

A.        Have a Home Loan Kit sent to you - just complete the request form

Q. What is Stamp Duty?

A. Stamp Duty is a State Government tax payable by the purchaser of real estate based upon the purchase price of the property. Depending on individual State legislation this tax is generally paid prior to settlement. You can increase your loan to cover these costs and we will release funds prior to settlement (conditions apply). First time home buyers may be exempt from stamp duty or entitled to a rebate or concession such as the First Home Owner Grant Scheme.

Q. What is the First Home Owner’s Grant Scheme?

A. Eligible first home buyers can receive non-means tested government assistance of $7,000. The scheme is administered by the States and Territories. It covers only the purchase of your first home in Australia. If you are married or living in a de facto relationship, you must make a joint application for the grant with your spouse or de facto. Neither of you can have owned a home previously, whether individually, or with any other person. You will be eligible to apply if you:

• are buying your first home
• are an Australian citizen or permanent resident
• intend to make the home your principal residence, and
• start living in the home within a reasonable time. The payment will be the same regardless of your income.

Q. What is the difference between a fixed rate loan and a variable rate loan?

A. A fixed rate loan is where the interest rate remains the same for a period of time, and at the end of the term, the loan reverts to a variable rate.  A variable rate loan is where the interest rate generally goes up and down according to the fluctuations in market rates.

Q. Can I switch between a fixed rate and a variable rate?

A. Yes. You can change from a fixed rate to a variable rate, or vice versa, at any time. However, a switching fee applies, and, if you switch from a fixed interest rate loan, an interest adjustment fee also applies. Conditions apply.

At the end of a fixed rate period your loan will automatically move to the variable rate (at no cost), or you can switch to another set period (in which case a switching fee applies).

Q. What is a Comparison Rate?

A.  A Comparison Rate expresses some of the costs of a loan into a single interest rate. The aim of the Comparison Rate is to help consumers make a more informed decision on the costs associated with a loan and help them to compare various loans and services offered by financial institutions and mortgage providers. The formula for calculating a comparison rate is regulated by the Consumer Credit Code and all Australian financial institutions and mortgage providers are required to use the same formula.

Q. What is Lenders Mortgage insurance (LMI)?

A. LMI protects lenders against loss should a borrower default on their loan. If the security property is required to be sold as a result of the default, the funds received from the sale may not cover the full balance outstanding on the loan. In this scenario, the lender is entitled to make an insurance claim to the LMI provider for the reimbursement of any amount outstanding, subject to the terms and conditions of the LMI Master Policy.

LMI should not be confused with Mortgage Protection and Loan Protection Insurance, which covers the borrower in the event of sickness, unemployment, disability, or death.

Q. What is a redraw facility?

A. This allows you to access any additional repayments you have made on your loan. Any redraw amounts get added to the amount you still owe on the home loan.

Q. What is the difference between a Principal and Interest Home Loan and an Interest-only Home Loan?

A. A Principal and Interest Home Loan is where the principal and the interest are repaid together for the term of the loan. Whereas an Interest-Only Loan allows you to pay only the interest on the loan, rather than paying both principal and interest. This payment option may be useful for property investors because it maximises the investor’s tax deductions

Q. What is the Establishment Fee for a Low Doc Loan when a Top Up is requested?

A. A $300 fee applies for all Top Ups, including Low Doc loans.

Split-rate loans

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Q. What is the benefit of a Split Loan?

A. The Variable and Fixed Rate Option (also known as a 'Split Loan') allows borrowers to take out a variable interest rate loan and a fixed interest rate loan (or any combination thereof). It gives customers the chance to reduce the impact of interest rate fluctuations on their budget. 

The fixed interest rate portion gives the customer the security of knowing their rate will not change over the fixed period; and the standard variable/discounted interest rate portion gives the customer the flexibility to make lump sum and higher than required repayments thereby reducing their loan balance.

Q. Do I receive one loan statement or two?
A. Every six months you receive separate statements for the fixed and variable portions of the Split-Rate Loan.

Q. With a Mortgage Interest Saver Account, what is the offset on a Split-Rate Loan?
A. You gain 100% offset on the variable rate portion of the loan, and partial offset on the fixed rate portion.

Viridian

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Q. How do I access money from my Viridian account?
A. Once your Viridian account is established, you can access it like a Commonwealth Bank transaction account using selected ATMs, cheque, EFTPOS or Australia Post EFTPOB terminals, as well as via NetBank, Telephone Banking, or by visiting any Commonwealth Bank branch.

Q. Do I have to have a credit card with Viridian?
A. No. However, if you use a credit card that gives you up to 55 days interest free on purchases to pay for your day-to-day expenses and then set up an automatic monthly payment from your Viridian to pay your credit card’s outstanding balance in full by the due date, you’ll avoid credit card interest, keep money in your Viridian longer and reduce your interest costs further.

Q. How do I find out the current balance on my Viridian account?
A. The same way as you would with any other Commonwealth Bank account - via NetBank, Telephone Banking, selected ATMs, or by visiting any Commonwealth Bank branch. You also receive your statement monthly so it's easy to keep track of your transactions.

Q. What is Loan to Value Ratio (LVR)?
A. The bank undertakes a valuation of the property and the maximum it will lend is 95% of that total valuation plus capitalisation of Loan Mortgage Insurance (approximately 2%).