Commonwealth Bank Home Loans - How Do They Stack Up As A Lender?

Angela Moss0

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The Commonwealth Bank of Australia is probably the most recognised financial institution in the country. It seems like you can find that yellow diamond logo in every strip mall and shopping centre around town.

That’s because the Commonwealth Bank is the biggest bank in Australia. It also has the largest share in the home loan market. Approximately a quarter of Australian home loans are financed by CommBank.

So, what is all the fuss about? In this article, we’ll have a good look at Commonwealth Bank home loans to see if they’re a good fit for you and your financial needs. We’ll ask:

  • Who are CommBank and what’s their reputation?
  • What home loan types are on offer?
  • Are you eligible for a CommBank home loan?
  • What is the home loan application process like?
  • What are the pros and cons of taking out a home loan with CommBank?

So if you’re in the real estate market or looking to refinance, read on to see if Australia’s biggest bank is the best bet for you.

Who Are The Commonwealth Bank And What’s Their Reputation?

If you’re an Australian of a certain vintage, your first foray into banking was most likely with the Commonwealth Bank of Australia (CBA). They were responsible for the school financial literacy program that had kids across Australia opening Dollarmites accounts.

The Australian Government founded the Bank, under the Commonwealth Bank Act 1911. It was the first bank in Australian history to receive a Federal Government guarantee.

This is a major reason why people choose to go with CommBank for their financial needs. They’re the Big Daddy of the Big 4 and have Australian Government backing. This makes people feel secure about having their money with the Commonwealth Bank.

They also have branches conveniently located all across Australia, and headquarters in Sydney, NSW. They’re also one of the better banks at servicing those living and looking to buy property in rural areas.

Also, the Commonwealth Bank has a vast array of financial products on offer like personal loans, insurance, credit cards, and term deposits, to name a few.

They cover a lot of ground unlike many of the newer neobanks. If you want the convenience of bundling financial products, then CommBank could be for you.

What Types Of Home Loans Do The Commonwealth Bank Offer?

Whether you’re refinancing or after an investor or owner-occupied home loan... CommBank has you covered. Being a large bank, the Commonwealth Bank has a wide range of products.

Generally, with all CommBank home loans, you’ll get a lower interest rate if:

  • You have an owner-occupied loan over an investment loan.
  • You’re borrowing a lower loan-to-value ratio (LVR).
  • You have a principal and interest loan over an interest-only loan.

Let’s have a look at what home loans CommBank has on offer.

Extra Home Loan

This is CommBank’s no fee, low-interest rate, no-frills option.

You’ll get:

  • A lower variable interest rate than the Standard Variable Interest Rate Home Loan.
  • No upfront establishment or monthly fees.
  • A fee-free redraw facility.
  • Split rate loan option.

Fixed Rate Home Loan

You’ll get:

  • The ability to lock in a rate for up to 5 years.
  • Split rate loan option.
  • The choice of interest-only or principal and interest payments.
  • The rate lock option (for a fee of $750) where you can lock in a rate before your loan is funded.
  • Note that early repayment may incur a fee.

Standard Variable Rate Home Loan

You’ll get:

  • Unlimited extra repayments to pay off your loan sooner.
  • Split rate loan option.
  • Interest offset account.
  • Top-up option.
  • A redraw facility.
  • Repayment flexibility (interest repayments or principal and interest payments).

Viridian Line of Credit

This is a flexible line of credit from the equity in your home. It can be used for a myriad of functions, such as:

  • Purchasing property (owner-occupied and investment) and land.
  • Home renovations.
  • Refinancing purposes.
  • Personal loans and personal loan consolidation.

Essentially, the line of credit can be used for your personal needs. It cannot be used for business purposes.

You’ll pay an up-front $600 establishment fee and $12 monthly loan servicing fees.

Here’s what you’ll get:

  • You’ll only pay interest on the amount you use.
  • You can access your funds in a number of ways: Online, via a branch, or a card.
  • Repayment flexibility. Although you’ll need to ensure you’re covering monthly fees, interest, and charges.

Wealth Package Home Loan

You can add the Wealth Package to the following home loans:

  • Standard Variable Rate Home Loan.
  • 1 to 5 year Fixed Rate Home Loan.
  • Viridian Line of Credit.

The Wealth Package is generally available to those taking out a loan bigger than $250,000. For a $395 annual fee, you’ll get the following benefits:

  • Interest rate discounts. You’ll save 0.70% p.a (Standard Variable Home Loan and Viridian Line of Credit), or 0.15% p.a. (Fixed Rate Home Loan).
  • The annual fee is waived on one of your eligible CommBank credit cards.
  • No up-front establishment fees or monthly account keeping fees.

The Unloan

In May 2022, CommBank launched a new digital-only loan with an application time of as little as 10 minutes. Called the Unloan, CommBank has developed it to meet the growing demand from customers for digital solutions.

This loan is an exciting option for those loyal to the Commonwealth Bank as the Unloan comes with a loyalty discount that increases by 0.01% every year, for up to 30 years.

Presently this option is only available for refinancing. But CommBank has plans to roll this out to homebuyers in the near future.

Other Commonwealth Bank Deals and Initiatives Available to Home Loan Customers

Home Loan Compassionate Care

The Commonwealth Bank offers home loan support should you, your spouse, or a dependant pass away or become medically diagnosed with a terminal illness.

Those who meet the eligibility criteria will have the option of having 12 months of repayments made on their behalf. It is available for fully or partially funded loans and new and existing customers.

This service is available for the following owner-occupied home loans:

  • Extra Home Loan.
  • Fixed Rate Home Loan.
  • Standard Variable Rate Home Loan.

Repayment Holiday

If you’re suffering financial hardship you may be eligible for a repayment holiday so you can get back on your feet again. This service can put your loan on hold and give you a break from making your repayments.

Property Share

This service is designed to assist first home buyers and investment property buyers to break into the housing market. It allows you to split the costs of purchasing a home with family and friends, but your finances remain separate.

Property Share is available for:

  • Extra Home Loan.
  • Fixed Rate Home Loan.
  • Standard Variable Rate Home Loan.
  • Viridian Line of Credit.

The Green Loan

As part of CommBank’s green initiative, those with an eligible owner-occupied or investment home loan can access a Green Loan. This provides a low 10-year fixed rate loan of 0.99% p.a. to facilitate the instalment of environmentally friendly fixtures such as solar panels, solar hot water systems, and battery packs.

Am I Eligible For A Commonwealth Bank Home Loan?

To be eligible for a home loan with the Commonwealth Bank, you’ll need to meet the following criteria:

  • An Australian citizen or permanent resident.
  • Be 18+ years of age.
  • Have a regular source of income in order to service the loan.

The good news is that Commonwealth Bank is a better option for more complex applications. They have a common-sense approach to self-employed home loan applications. And, they offer low doc loans which can enable those with casual and contract employment to get into the housing market.

What Is The Commonwealth Bank Home Loan Application Process Like?

CommBank has large branch coverage, an extensive mortgage broker network (which includes YouBroker), and robust online and telebanking services. You have a lot of options to choose from when you want to get the home loan application ball rolling.

Compared to other banks they have quick turnaround times. They’ve been in the home loan game for a long time and have the experience to assess more complex loan applications. They also provide speedy pre-approvals to give you an idea of your borrowing power when house hunting.

The Commonwealth Bank will require the standard documentation when assessing your home loan, such as:

  • The Contract of Sale (to finalise the home loan application process).
  • Adequate identification.
  • Proof of income.
  • Assets, equity, expenses, and liability information.

Also, the Commonwealth Bank has a sophisticated credit rating system and will give you a risk score between 1 and 5.

What Are The Pros And Cons Of A Commonwealth Bank Home Loan?

Let’s break down the pros and cons of CommBank home loans to see if they’re potentially a great fit for you.


  • If you like popping into a branch then CommBank has you covered. They have the largest network of branches in Australia. They also have the largest amount of ATMs.
  • Their online banking portal and smartphone app are robust and user-friendly. They also offer telephone banking.
  • Being the biggest bank in the country, they’re able to offer a large array of financial products and home loan options.
  • Quick turnaround times. They have advanced systems in place to be able to assess quickly. This type of speedy service can make the difference between landing your dream home or missing out.
  • With innovative and seasoned systems in place for assessing credit history, they’re known for taking a common-sense approach.
  • Keep a lookout for great cashback and refinancing deals. A good mortgage broker, like YouBroker, can keep you up to date.
  • They’re a good option for self-employed borrowers. They have a common-sense approach and can accept 6 months of your self-employed salary to verify your income.
  • They’re equipped to assess complex home loan applications and have low doc and guarantor loan options.
  • Their lending policy is more flexible due to their DUA.
  • They offer repayment holidays, green loans, and bereavement protections on home loans. They also have redraw facilities, offset accounts, and flexible repayments on eligible products.
  • They’re part of the First Home Loan Deposit Scheme. If fact, they were one of the first banks to be on board.
  • They offer lenders mortgage insurance (LMI) to allow those with a smaller deposit to purchase.


Let’s look at the cons of a CommBank home loan:

  • They love fees. Most of their home loan products have upfront fees and ongoing account-keeping fees.
  • Their interest rates can be on the higher side.
  • While they do offer low doc home loans, the interest rates will be higher.

Disclaimer: The above information was accurate at the time of publishing. Banks and lenders may change their offerings, policies, and procedures from time to time.

The Wrap Up

As you can expect, banking with the big guns like the Commonwealth Bank gives you more options. They have the financial grunt behind them to afford to take on the risk associated with low doc home loans and different financial situations. And they have the credit assessment expertise to look deep into more complex home loan applications.

And if you need more than a home loan, the Commonwealth Bank has a vast array of other financial products and solutions on offer. They also cover a lot of ground with their banking branch network. And their mobile and online banking systems are top-notch and user-friendly.

But you’ll have to pay for the privilege. They love a good account keeping and application fee at the Commonwealth Bank. And they also tend to have higher interest rates. So if you’re considering a CommBank home loan, working with a mortgage broker is a good idea to keep informed of the latest cash backs, offers and deals.

If you’re after more info on real estate, finance and lifestyle, check out more articles from YouBroker here:

Next Steps

Are you wrapping your head around the real estate buying process and your financial situation all while comparing lenders and deals? It can be overwhelming. But you don’t have to do it alone.

At YouBroker, we specialise in:

  • Providing you with access to the best cashbacks, deals, and interest rates.
  • Assessing your financial situation and goals to give expert advice.
  • Calculating your savings, living expenses, and borrowing power, to give you insight into what loan amount you could be eligible for.
  • Guiding you through the refinancing or property buying process so you are informed, prepared, and can get the best deal.
  • Comparing lenders across multiple financial providers to assess who can offer you the best deal to suit your individual needs and goals.

We offer a full online service so you can start the process on the go or from the convenience of your own home. You’ll get access to our secure online portal to keep you up to date with progress and info.

So if you’re looking to take the struggle out of the mortgage application process, our fully accredited team is ready to assist.

You can get started with YouBroker here: 

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