Commbank House Loan: Your Complete Australian Guide
Complete guide to commbank house loan in Australia. Compare options, rates, and eligibility. Expert advice from Esteb and Co.
In This Article
This guide covers everything you need to know about commbank house loan in Australia, including eligibility, rates, and how to find the best option for your situation.
Understanding commbank house loan
When exploring commbank house loan options, understanding the Australian market and your eligibility is the first step. Rates, terms, and requirements vary by lender and your individual circumstances.
Key Factors to Consider
- Interest rates - Shop around, as rates vary significantly
- Fees - Application, ongoing, and exit fees affect total cost
- Eligibility - Each lender has different requirements
- Loan term - Affects both repayments and total interest paid
- Features - Extra repayments, redraw, flexibility
How to Get Started
- Research your options and understand typical rates
- Check your credit score (free through credit reporting agencies)
- Calculate what you can afford to repay
- Compare multiple lenders or use a broker
- Gather required documents before applying
Why Use a Broker
A broker can help you navigate commbank house loan options by:
- Comparing options from 40+ lenders
- Finding lenders that suit your situation
- Handling paperwork and negotiations
- Providing free, expert guidance
Current Australian Home Loan Market
The Australian home loan market offers diverse options across major banks, credit unions, and non-bank lenders. Interest rates vary significantly based on your deposit size, credit history, and employment type. Fixed rates provide payment certainty, while variable rates offer flexibility and potential savings when rates drop.
Lenders assess applications using serviceability buffers (currently 3% above the loan rate) to ensure borrowers can handle rate increases. Your borrowing capacity depends on income, existing debts, living expenses, and the property type you're purchasing.
Types of Home Loans Available
| Loan Type | Best For | Key Features | Typical Rates |
|---|---|---|---|
| Variable Rate | Flexibility seekers | Extra repayments, redraw, offset | 5.99% - 7.50% |
| Fixed Rate | Budget certainty | Locked rate for 1-5 years | 5.89% - 6.99% |
| Split Loan | Best of both | Part fixed, part variable | Blended rate |
| Interest Only | Investors | Lower initial payments | +0.25% premium |
| Low Doc | Self-employed | Less paperwork required | +0.50% - 1.00% |
Application Process Step by Step
- Check your borrowing power - Use calculators or speak with a broker to understand your budget based on income, debts, and expenses
- Get pre-approval - A conditional approval (valid 3-6 months) shows sellers you're a serious buyer
- Find your property - Search within your pre-approved budget, allowing for stamp duty and other costs
- Submit full application - Provide payslips, bank statements, ID, and property contract
- Property valuation - Lender arranges valuation to confirm property value supports the loan
- Formal approval - Unconditional approval means the loan is locked in
- Settlement - Funds transfer, you get the keys, loan repayments begin
The process typically takes 2-4 weeks from application to approval, plus additional time to settlement.
Costs Beyond the Interest Rate
When comparing home loans, look beyond the headline rate:
- Comparison rate - Includes fees to show true cost (legally required for advertising)
- Application/establishment fees - $0 to $600 depending on lender
- Ongoing fees - Monthly or annual account keeping fees ($0-$400/year)
- Valuation fees - Often covered by lender, otherwise $200-$600
- Lenders Mortgage Insurance (LMI) - Required if borrowing over 80% LVR, can be $5,000-$30,000+
- Discharge fees - $150-$400 when you pay off or refinance
- Break costs - Significant fees for exiting fixed rates early
First Home Buyer Considerations
First home buyers have access to several government support programs that can significantly reduce upfront costs:
- First Home Owner Grant (FHOG) - State-based grants typically $10,000-$30,000 for new builds
- First Home Guarantee - Buy with 5% deposit without paying LMI (limited places)
- Regional First Home Buyer Guarantee - Similar scheme for regional purchases
- Family Home Guarantee - For single parents with children, 2% deposit possible
- Stamp duty concessions - Reduced or waived stamp duty in most states for first buyers
Eligibility varies by state and property type. Check your state revenue office website for current thresholds and conditions.
Refinancing and Switching Lenders
Existing homeowners should review their loan regularly. Refinancing can save thousands through:
- Lower interest rate - Even 0.5% less saves significant money over the loan term
- Better features - Offset accounts, redraw, flexible repayments
- Debt consolidation - Roll other debts into your mortgage at a lower rate
- Access equity - Use increased property value for renovations or investment
Consider refinancing costs (discharge fees, new lender fees, potentially new valuation) against potential savings. Generally, if you'll save more than the costs within 2-3 years, refinancing makes sense.
Understanding Loan Features
Modern home loans offer features that can save money and provide flexibility:
| Feature | How It Works | Benefit |
|---|---|---|
| Offset Account | Savings balance reduces loan interest | $50K offset saves ~$3K/year at 6% |
| Redraw Facility | Access extra payments you've made | Emergency access to funds |
| Extra Repayments | Pay more than minimum required | Reduces term and total interest |
| Repayment Holiday | Pause payments temporarily | Buffer during hardship |
| Split Loan | Part fixed, part variable | Rate certainty plus flexibility |
Frequently Asked Questions
Q: How long does approval take?
A: Approval times vary from same-day for simple applications to several weeks for complex situations.
Q: What documents do I need?
A: Typically ID, proof of income (payslips or tax returns), and bank statements. Requirements vary by lender and loan type.
Q: Can I apply with bad credit?
A: Options exist for most credit situations, though rates are higher. Specialist lenders focus on current circumstances rather than past issues.
Q: Is using a broker free?
A: Yes, for most loan types. Brokers are paid by the lender you choose, not by you.
Q: How much deposit do I need for a home loan?
A: Most lenders require a minimum 5% deposit, but 20% avoids Lenders Mortgage Insurance (LMI). First home buyers may access government schemes with deposits as low as 2-5%.
Q: Can I get a home loan with bad credit?
A: Yes, specialist lenders offer home loans for people with credit issues. Expect higher rates (7-12%) and may need a larger deposit (20-30%). A broker can match you with appropriate lenders.
Q: How long does home loan approval take?
A: Pre-approval takes 1-3 days. Full approval typically takes 1-3 weeks depending on application complexity, property type, and lender processing times.
Q: Should I use a mortgage broker?
A: Brokers provide free access to multiple lenders, save time on paperwork, and can find options you might miss. They're paid by lenders, not you, and can be especially helpful for complex situations.
Find Out What You Qualify For
Compare rates from 83+ lenders in just 2 minutes.
No credit check • No obligation • 100% free
Check Your Options Now →Prefer to talk? Call 0424 406 977