Will all Geared Investments Loan clients be sent communications about interest rate options this End of Financial Year? 

  • The majority of Geared Investments Loan clients will be communicated to. Clients who have ongoing multi-year fixed loans will be sent separate interest payment notices prior to the yearly anniversary of their fixed loan.

How can advisers and advised clients obtain their Geared Investments User ID?

  • You can also call us on 13 15 20 from within Australia (or +61 2 8397 1221 from outside Australia), 8:30am to 6:00pm (Sydney time), Monday to Friday.

How can advisers search for their fixed rate clients’ details online?

  • The new website provides advisers with the ability to search and filter their clients’ fixed rate loans.

    To do this, log into your Geared Investments online account at commbank.com.au/gearedinvestments and then:

    1. In the navigation bar ‘Search or Filter by’ > ‘Loan status' > 
    2. ‘Select loan status’ >  ‘Fixed interest loan’
    3. Click on the magnifying glass button to submit the search request
    4. To view your clients’ loan details click on ‘Loan details’

How do I make a request to fix the interest rate on a Geared Investments Loan?

  • Clients are recommended to consult with their adviser about whether fixing their rate continues to be an appropriate strategy for them and before using any of the website features to take action on their loan.

    Both advisers and clients can submit fixed interest requests on the new Geared Investments website.

    Simply follow these steps to fix a Geared Investments Loan balance online:

    1. Log into your Geared Investments online account at commbank.com.au/gearedinvestments
    2. Once logged in and after locating the Geared Investments Loan you wish to fix select ‘Loan details’
    3. Select ‘Transfer’ > ‘Variable to fixed loan’
    4. Input the fixed rate request details (Fixed loan term, start from date, interest payment schedule, interest payment method and fixed loan amount)
    5. View the summary
    6. To proceed, click on the ‘Continue’ button
    7. Follow the onscreen instructions to receive an SMS security code to your registered mobile
      Note that if you haven’t yet registered for ‘Two-step Protect’ you will be prompted to select the mobile number you wish to register
    8. Review the details
    9. Submit the fixed interest request

    If you prefer to keep the loan on a variable interest rate, you don’t need to do anything.

    To review the status of the request or to obtain a confirmation record, in the navigation bar select ‘Service Centre’ > Select ‘Requests’ > Select ‘Details’ of the request you wish to view.

    Alternatively, you can complete and return a Fixed Interest Request form via email at marginlendingfixedinterest@cba.com.au or mail (details included on form). If you would like your fixed interest rate to commence on a future date please nominate this date on your form, otherwise your fixed interest rate will commence on receipt of your form.

Where can I access a Fixed Interest Request form?

What are the interest payment options if I choose to pay my interest in advance?

  • The same interest payment method selected for your variable loan balance will be used if you choose to submit the request online. If you wish to change this payment method, please contact us.

    You can pay interest in advance by any of the following methods:

    • Capitalise to your variable loan (provided you have available credit to do so)
    • Capitalise to your fixed loan (provided you have available credit to do so)
    • Direct debit of your linked bank account (provided we hold an active direct debit authority)
    • BPAY:
      • Biller code: 828210
      • Reference number: refer to your ‘Account Details’ page online

Important note to clients: Should I use your standard BPAY details if I am paying my interest in advance?

  • No. To ensure we apply your BPAY payment towards your interest costs and not towards reducing your outstanding loan balance, it is important the payment is paid into Biller code: 828210, Reference number: refer to your ‘Account Details’ page online. Your completed and signed Fixed Interest Request form must also be returned to us in order to process your fixed interest request.

Can I break my fixed interest rate loan prior to its maturity date?

  • You can break your fixed loan at any time, however please note a Termination Fee/Early Repayment Adjustment may apply - please refer to the Margin Loan Terms and Conditions. If you have paid your interest in advance we will refund your unused portion of interest less any Early Repayment Adjustment.

Can I borrow (capitalise) the interest amount?

  • Yes. If you choose to pay your interest in advance you may capitalise your interest to your variable or fixed loan. If you choose to pay your interest monthly in arrears you may capitalise your interest to your variable loan only. Your ability to capitalise interest is dependent on your available credit. It is also important to note that capitalising interest to your fixed loan will result in a larger amount being fixed. This is a result of additional interest being calculated on the interest borrowed.

I have an existing fixed rate loan due to mature this financial year. If I choose to refix, will the new fixed loan begin on the day my existing fixed loan matures?

  • Yes. Provided we receive your request prior to the existing fixed rate loan's maturity date we will endeavour to process your new fixed loan on the day of maturity. Requests received after your existing fixed loan has matured will be fixed as soon as possible and may result in a period where a variable interest rate will be applied to your loan amount.

What are the risks involved?

  • Borrowing to invest can multiply your investment returns in a rising market. However, if your investments perform poorly, it can also multiply your investment losses.

    Other risks associated with an investment loan include:

    • Borrowing limits may be reduced, increasing the potential for a Margin Call
    • The variable interest rate may increase resulting in higher interest costs
    • Margin calls may require investments to be sold quickly at unfavourable prices if you are unprepared
    • Tax legislation or marginal tax rates may change

    There are a number of things you can do to reduce the risks associated with an investment loan. For example, borrowing less than the maximum allowed reduces the risk of a margin call.

    Before you apply for an investment loan, you should speak to your financial adviser who will be able to help you put an appropriate strategy in place. Investors should also obtain professional taxation advice that addresses their individual circumstances before taking out an investment loan.

Things you should know

  • Commonwealth Bank Geared Investments Loan is issued by Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945. This product is administered by Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec), a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia. CommSec is a Market Participant of ASX Limited and Cboe Australia Pty Limited, a Clearing Participant of ASX Clear Pty Limited and a Settlement Participant of ASX Settlement Pty Limited. Applications for Geared Investments Loans are subject to approval. Fees and charges apply. The information has been prepared without taking into account your objectives, financial situation or needs. For this reason, any individual should, before acting on this information, consider the appropriateness of the information, having regards to their objectives, financial situation or needs, and, if necessary, seek appropriate professional advice. You can view the Geared Investments Loan Product Disclosure Statement and Geared Investments Loan Terms and Conditions, and should consider them before making any decision about these products and services.

    Tax considerations are general, based on present taxation laws, and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information. Commonwealth Bank is not a registered tax (financial) adviser under the Tax Agent Services Act 2009 and you should seek tax advice from a registered tax agent or registered tax (financial) adviser if you intend to rely on this information to satisfy the liabilities or obligations or claim entitlements that arise, or could arise, under a taxation law.

    Important information