Interest changes and your business

Learn how recent interest rate changes by the Reserve Bank affect our products and find tips to help prepare and support your business during this time. 

Find out more

Understanding Repayments

  • How we calculate your repayments

    Your BetterBusiness loan repayment amount is based on how much is owing on the loan, the interest rate and the loan term. We regularly recalculate your loan repayment amount to make sure you’re able to repay the loan in the remaining loan term.

    You can view your repayment amount, repayment type and frequency anytime in NetBank and the CommBank App. 

    View in NetBank

    View in CommBiz

  • Why repayments change

    Over the course of your loan term, your repayments might need to be adjusted.

    From time to time, we may need to make changes to your repayments to make sure you’re able to repay the loan within the remaining loan term.

    If we need to increase your repayment amount because of something like an interest rate rise, or we have to recalculate your payments due to a large redraw or because you’re rolling off a fixed or introductory period, we’ll contact you to confirm:

    • Your new required repayment amount
    • When this will take effect
    • Any other action that you need to take

    You’ll have a minimum of 30 days between receiving this notification and having to make the updated repayment*.

    If you have any questions about your new repayment amount or you would like to review your loan in light of these changes, you should contact your Relationship Manager if you have one, or call our Business Banking Team on 13 19 98, 24/7. You can also visit your nearest CommBank branch.

Repayment changes when interest rates rise

  • In the event of a rate increase, the new interest rate will apply from the rate effective date.

    If you make Principal and Interest repayments, your repayment amount won’t increase straight away. If your repayment needs to increase, we’ll always give you at least 30 days’ notice prior to any increase to your loan repayments.

    If you make Interest Only payments, the interest payable will increase from the rate effective date. We’ll update your direct debit for you, so you’ll need to ensure you have enough money in your direct debit account to cover the increased amount.

    If you are on a fixed rate, there will be no change to your repayments until your fixed term concludes.

    Common questions

    How will I find out if my repayment amount is increasing?

    • If you make Principal and Interest repayments, we will send you a notice email at least 30 days prior to an increase to your repayments. If we don’t have your email address, we will send you a letter instead.
    • This notice will include the new amount we plan to increase your repayments to. This amount may change between when we provide you notice and make the change effective, however it will never be higher than the maximum amount we disclosed.
    • We’ll also write to you after your notice period to confirm your new repayment amount and effective date.

    What happens after my required repayment amount has increased?

    • If you have a direct debit, we’ll update this for you so you can meet your repayment obligations. You’ll need to ensure you have sufficient funds in your direct debit account.
    • If you pay manually, you’ll need to increase the repayment amount yourself.

    My repayment amount did not increase, why?

    • If you have a sufficient redraw balance to support your existing repayment amount or are already paying above your required amount, you may not be required to increase your scheduled repayment.
      However, an increase may be applied at a later date, with at least 30 days’ notice, if and when the loan circumstances change.
    • If you received a notice from us to advise of an intended repayment increase but did not receive a confirmation after your notice period, circumstances on your account may have changed between when we notified you of a repayment change and when the change was due to take effect. In this case, we may have chosen not to apply the repayment change.
      If in the future we identify that a repayment increase is required, we will write to you again to advise of the new details. 

    How do interest rate changes impact my available redraw balance?

    • When interest rates rise, your available redraw balance will gradually reduce over the remaining life of your loan to ensure your loan is repaid within the loan term. If your redraw balance is not sufficient to support your current repayment amount, we'll contact you to advise of any increase required to your current repayment amount.
    • If you have any questions regarding your repayment amount or redraw balance, call 13 1998 or speak to your Relationship Manager.

Manage your Repayments 

  • Direct debit repayments

    If we manage your direct debit you won’t need to do anything. We will automatically adjust your repayment amount if a change is required.

    If you make repayments yourself, you’ll need to ensure you update the repayment details in line with any notice we provide you.

  • Increase or decrease your repayments

    If you have a variable rate BetterBusiness loan with us and you’re paying Principal and Interest, you can:

    • Increase your repayments to pay your BetterBusiness loan off faster and reduce the interest you’ll pay over time
    • Reduce your repayments to free up some cash, provided we’ve reduced the interest rate or you are ahead on your loan by having made extra repayments before and now have redraw available. Remember, lowering your repayments will reduce your available redraw balance and will increase the amount of interest paid over the life of your loan.

    We’ll need to check that your new repayment amount allows you to repay the loan in the remaining loan term.

    To learn more or to change your repayments, you can call our Business Banking Team on 13 19 98, 24/7 or contact your Relationship Manager.

Redrawing extra repayments

  • Accessing your additional repayments could be an option when you need additional funds.

    Learn about redraw

Things you should know

  • *Should any circumstances on your account change between when we notify you of a repayment change and when that change is due to take effect, we may choose not to apply the repayment change. If in the future we identify that a change is required, we will write to you again to advise of the details.  

    As this information has been prepared without taking into account your individual and/or business objectives, financial situation or needs, you should, before acting on this information, consider its appropriateness to your circumstances. 

    Credit provided by the Commonwealth Bank of Australia. These products are only available to approved business customers and for business purposes only. Applications for finance are subject to the Bank's eligibility and suitability criteria and normal credit approval processes. View our current terms and conditions for Business Finance, and consider them before making any decision about these products. Rates are subject to change. Fees, charges and Terms & Conditions apply. For current interest rates, visit Business banking rates and fees.