Changes to Interest Rates on Investment Home Loan Products and Viridian Line of Credit

Tuesday 13 December 2016

Commonwealth Bank has today announced an increase in its Standard Variable Rate investor home loan interest rates by 0.07%, to 5.56% per annum, and an increase in the Viridian Line of Credit interest rate by 0.15%, to 5.78% per annum.

These changes are effective from Friday, 16 December 2016, and are indicated in the table below:

Product

New Rate

Change

Comparison Rate

Effective Date

(p.a.)

(p.a.)

(p.a.)

Variable Rate - Investment Home Loans

Investment Home Loan Standard Variable Rate

5.56%

+0.07%

5.70%

16/12/2016

Investment Home Loan 12 Month Discounted Variable Rate

4.86%

+0.07%

5.64%

16/12/2016

Investment Home Loan Base Variable Rate (Economiser)

5.10%

+0.07%

5.25%

16/12/2016

Investment Home Loan Base Variable Rate (3 Year Special Economiser)

4.26%

+0.07%

4.89%

16/12/2016

Investment Home Loan No Fee Variable Rate

4.86%

+0.07%

4.86%

16/12/2016

Investment Home Loan Extra Variable Rate (Reference Rate Only - Not for sale)

4.86%

+0.07%

N/A

16/12/2016

Investment Home Loan Extra Variable Rate

4.53%

+0.07%

4.64%

16/12/2016

Investment Home Loan Extra Variable Rate (2 Year Introductory Rate)

4.38%

+0.07%

4.80%

16/12/2016

Viridian Lines of Credit (VLOC)

VLOC - Residential Equity Rate

5.78%

+0.15%

N/A

16/12/2016

Equity Unlock Loan for Seniors

6.37%

No Change

N/A

16/12/2016

MISA

Investment Home Loan MISA Standard Variable Rate

5.56%

+0.07%

N/A

16/12/2016

Investment Home Loan MISA - 12 Month Discounted Variable Rate

4.86%

+0.07%

N/A

16/12/2016

Low Doc Home Loans

Low Doc – Viridian Line of Credit

6.08%

+0.15%

N/A

16/12/2016

Low Doc Investment Home Loans

Investment Home Loan Low Doc Standard Variable Rate

5.86%

+0.07%

6.00%

16/12/2016

Investment Home Loan Low Doc Base Variable Rate (Economiser)

5.40%

+0.07%

5.55%

16/12/2016

Investment Home Loans Low Doc – Viridian Line of Credit

6.08%

+0.15%

N/A

16/12/2016

HomePath Investment Home Loans

HomePath Investment Home Loan Variable Rate (no longer available for sale)

4.86%

+0.07%

4.86%

16/12/2016

Commonwealth Portfolio Loan

CommSec Variable Rate

5.78%

+0.15%

N/A

16/12/2016


Important Information: Interest rates are effective from 16/12/2016. Comparison rates calculated on a $150,000 secured loan over a 25 year term. WARNING: These comparison rates are true only for the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in different comparison rates. To be eligible for Wealth Package, you must have a current home loan or line of credit with an initial ‘total home lending balance’ of at least $150,000 when you apply for Wealth Package. The package can only be established under one individual’s name or in the name of a corporate entity. It cannot be established in joint names or in the name of a business or family investment trust. The current annual package fee is $395, and this will be debited to a nominated Commonwealth Bank transaction account or Commonwealth Bank Credit Card. Customers with Low Doc Loans are not eligible to apply for Wealth Package. Package benefits are only available while you have a current home loan or line of credit facility and have paid the annual package fee. 

Frequently Asked Questions

What was announced?

Commonwealth Bank has today announced an increase in its Variable Investment Home Loan and Viridian Lines of Credit rates effective Friday 16 December 2016:

- The Investment Home Loan Standard Variable Rate will increase by 0.07% p.a. to 5.56% p.a.

- Viridian Lines of Credit rates will increase by 0.15% p.a. to 5.78% p.a.

- Fixed Rate and EQFS home loans remain unchanged.


Our Owner Occupied Standard Variable Rate remains unchanged at a historical low of 5.22% p.a.

Q&A

Why is Commonwealth Bank increasing home loan rates for investment home loans and Viridian Lines of Credit?

We have carefully considered the current environment when making this decision – in particular the higher costs associated with funding mortgages, the increased capital costs associated with providing home loans, and the need to remain below the regulatory 10 per cent investor home loan growth cap. We believe these changes balance the needs of our borrowers and shareholders, while helping to underpin the long-term sustainability of the Australian home loan market.

Will my repayments be automatically increased after Commonwealth Bank’s decision to increase the Investment Home Loan Standard Variable Rate?

- For principal and interest (P&I) repayments we will automatically increase repayments to ensure customers are meeting their Required Minimum Repayment Amount (RMRA) where appropriate.

- For interest only repayments we will automatically adjust loan repayments each month to ensure customers cover the amount of interest charged. Customers do not have to do anything if they are making interest only repayments.

- If you wish to discuss your repayments structure, you can contact one of our lenders on 13 22 24 between 8am and 8pm, visit your nearest branch, or complete a ‘Change my loan repayment’ request in Netbank.

I am a customer making interest only repayments on my home loan. What does the new interest only product mean for me?

- We have introduced new reference rates and products for customers making interest only repayments to more accurately differentiate this repayment option for our customers.

I am unsure if my home loan product remains appropriate for my needs.

- If you are unsure if your original home loan product remains the most appropriate for your needs, you can speak with one of our lenders who can conduct a Financial Health Check and assess the product(s) and options best suited for your needs.  To do this, please visit one of our branches or call us on 13 22 24. 

I would like further information. Who can I speak to?

- Please contact us for more information.  If you would like us to conduct a Financial Health Check for you to ensure that we are supporting you to achieve your financial goals. You can visit any Commonwealth Bank branch or call us on 13 22 24 for more information.