How much can I borrow for a home loan?
Last updated 29 August 2016
There are a number of factors that determine how much you can borrow for a home loan including the amount of income and the value of the security property. Before assessing how much you can borrow, we'll work with you to understand your full financial needs as part of our commitment to responsible lending.
What is the maximum amount you can borrow?
If you are a current home loan, personal loan or credit card customer of the Commonwealth Bank for the past 6 months, and are not in arrears and have not missed any repayments, you may be able to borrow up to 95% of value of the property.
If you have not been a home loan, personal loan or credit card customer of the Commonwealth Bank for the past 6 months, or are a new customer to the Commonwealth Bank, you may be able to borrow up to 90% of value of the property, as long as you contribute 5% of the deposit in genuine savings , (excludes the First Home Owners Grant).
What is a Loan to Value Ratio (LVR)?
A LVR is referred to the amount of the loan compared to the value of the security property used. The value of the security property is usually determined by a valuation of your property (which is not always the same as the purchase or estimated price) and this valuation amount helps determine the maximum loan amount we may be able to provide. If required we may also add the Lender's Mortgage Insurance premium to your loan (up to a maximum of 95%), so it doesn't cost you anything upfront.
What is Genuine Savings?
Genuine Savings is a deposit usually a minimum of 5% of the purchase value where the LVR is >85%.
Genuine savings include the following:
- Term Deposits (held for a minimum of 3 months)
- Shares (held for a minimum of 3 months)
- Savings in an account (held for a minimum of 3 months and accumulated through regular deposits or a gift)
- Equity in an existing property
What amount can I borrow?
You can calculate an indicative amount you can borrow using our borrowing calculator.
To find out exactly how much you can borrow, please call us on 13 2224 from 8am to 8pm, Monday to Friday or visit any Commonwealth Bank Branch.
Alternatively, you can complete a 60 second conditional approval and one of our Home Lending Specialists will call at a time that suits you to assist with the rest of your application.