Could a clearer, stepwise approach change how they buy a home and save on interest and rates?
This short guide walks a borrower through the commonwealth bank end-to-end process. It covers assessing a home loan, comparing products, preparing documents, and signing contracts.
Readers will learn why deposit size and LVR matter, and how APRA serviceability buffers—usually 3% above the advertised rate—affect approval odds. It explains who the bank lends to: first home buyers, refinancers, investors and those building or using bridging finance.
The section previews fixed versus variable features, valuation and conditional approval steps, and the sorts of income and expense information the bank checks. It also flags timing and sequencing to reduce delays.
This overview helps borrowers ask better questions and set expectations before they apply. Later sections unpack fees, offsets, redraw and package features so they can choose the best route for their home goals.
What this Product Review covers for Australian borrowers
This section sets out the scope and method used to assess home and personal borrowing products for Australian households.
The review looks at commonwealth bank australia offerings: core home loans, refinancing paths and relevant personal loan options for renovations. It explains how features, fees and service touchpoints are compared over different years of a borrower’s journey.
Readers learn to read interest rates versus total cost, and how package discounts and offset access affect real repayments. The guide also maps the research-to-process steps: shortlisting lenders, comparing products like-for-like and lining up documents before applying.
Practical data is included: personal applications can be made online, by phone or in branch with a roughly 10-minute form and fast responses. Personal borrowing ranges $4,000–$50,000 with terms of 1–7 years and varied repayment frequencies.
The review highlights who benefits—first-timers, upgraders and investors—and clarifies key terms such as comparison rates, LVR and serviceability. It ends with tips to benchmark multiple providers so borrowers avoid overpaying and know when to revisit choices.
Eligibility at a glance: who CBA lends to
Who the bank will back depends on income, deposit size and the property’s postcode.
The bank accepts a range of borrowers: first home buyers, owner‑occupiers, investors, refinancers, builders and people needing bridging finance.
Typically a 5% deposit is the minimum, which means up to a 95% LVR in many cases. Some suburbs may carry lower LVR caps to protect property value and reduce risk.
Under APRA rules the bank tests repayments as if the interest rate rose by 3% above the advertised rate. This serviceability buffer helps ensure borrowers can handle higher rates in future.
Eligible first home buyers can use national guarantees to avoid LMI with a 5% deposit. Otherwise, insurance via Helia usually applies where equity is under 20%.
Self‑employed applicants may use low‑doc pathways if they meet tests. The bank sets different rates for owner‑occupied and investment mortgages, including a standard variable rate option. Checking guarantees, LMI and postcode caps early saves time and clarifies realistic price ranges before applying.
Documents to prepare before you apply
Gathering the right documents first will cut delays and speed up your application. For personal applications the online form can take about 10 minutes and often yields an initial response in roughly 60 seconds. New customers may need an in-branch ID check, so plan a short visit if required.
Have primary and secondary ID ready (for example passport and driver licence). Prepare recent payslips or an employment letter. Self-employed applicants should keep BAS or tax returns and bank statements showing income over at least a quarter of a year.
List living expenses clearly, including utilities and transport, and make sure accounts reflect those patterns. Gather statements for all credit cards and other loans with balances and limits so the bank can assess repayments and interest risk.
If funds are gifted or from a grant, keep evidence of origin and timing. For home purchases, also have property items ready like the contract of sale or building plans; these may be requested at later process stages.
Set up access to accounts for digital uploads and prepare a short cover note explaining employment history or unusual transactions. Check that names and addresses match across all documents to avoid verification delays.
How to apply for a CBA loan step by step
A simple, stepwise application helps applicants move from shortlist to settlement with fewer delays.
Start by shortlisting a commonwealth bank product that fits the purpose and deposit. Complete the online form; it usually takes about 10 minutes when documents are ready and gives an initial response in roughly 60 seconds.
Expect quick automated feedback, then a verification phase that can add a few days depending on document completeness. New-to-bank customers should plan an in-branch ID check to speed compliance and keep the process moving.
After conditional approval the bank arranges a valuation of the target home. Valuation outcomes can change the maximum amount and the rate offered if the LVR shifts, so be prepared to respond promptly.
Choose repayment frequency that matches income—weekly, fortnightly or monthly—then decide on variable rate or a fixed rate home split if needed. Review disclosure documents and key facts sheets before signing.
Keep communication lines open, e-sign where available, prepare settlement details and set up accounts for direct debit repayments to close the process with minimal delay.
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Rates, fees and features: comparing CBA home and personal loans
Rates tell part of the story; fees and account features complete the picture for every borrower.
For example, a variable rate home loan advertised at 5.29% had a comparison of 5.33%, with estimated monthly repayments of $2,219 on a $500,000, 30‑year mortgage.
That product shows no application or ongoing monthly fees, allows extra repayments with fee‑free redraw and offers an optional offset sub‑account. The standard variable rate setting and comparison rate help weigh true cost over time.
The Wealth Package can lower the rate and waive some fees in exchange for an annual fee. Model costs across at least a year to see if the wealth benefits outweigh the package charge.
Fixed rate home options trade flexibility for certainty. Fixed segments usually lack offset or redraw. A 90‑day rate lock is available for $750 while an application and settlement progress.
Personal products differ: amounts $4,000–$50,000 over 1–7 years carry establishment and monthly fees, with limited annual extra repayments. If LVR is over 80% expect LMI via Helia.
Compare products on features you will use: redraw limits, offset accounts and fee waivers. Run month and year repayment scenarios using realistic rate assumptions before deciding.
Refinancing with Commonwealth Bank
A quicker refinance path helps borrowers move without long gaps between payouts.
The commonwealth bank offers FASTReFi to shift an eligible mortgage in days. This reduces downtime and makes coordination with other lenders simpler.
Applicants can complete IDs, consent and serviceability checks online. The digital route often cuts administrative time compared with paper processes.
Variable rate portions keep offsets and redraws, while fixed segments usually lack those features. Splitting a home loan lets borrowers hold certainty on part of the balance and flexibility on the rest.
Top-ups are an option to fund renovations, subject to available equity and checks. Repayment holidays of three to six months may be possible if extra repayments have been made previously.
Check exit fees and early repayment costs when breaking a fixed rate home term. Factor those fees into any switching calculation alongside headline rates.
Consider the Wealth Package if long‑term savings on fees and rates offset its annual charge. After settlement, set repayment frequency and automate transfers to maximise offset benefits from day one.
CBA loan pros and cons from a borrower’s perspective
For many Australians, branch access and digital tools matter as much as the advertised interest.
The commonwealth bank offers wide branch coverage plus online apply and FASTReFi. Variable options with offset accounts and redraw let borrowers cut interest over years when savings sit against balances. Package discounts can reduce effective rates, and support options include repayment holidays for short hardship.
On the downside, headline interest rates can be higher than some market rivals. Fixed segments may lack offset and may cap extra repayments, limiting flexibility if a borrower plans big lump sums within a few years.
Some personal products carry establishment and monthly fees that erode value for small balances or short terms. A strong credit profile and clean documents often deliver faster outcomes and better offers from this lender.
Overall, the commonwealth bank balances service depth and product range with predictable features. Rate-sensitive borrowers should benchmark other banks and reassess their position every 1–2 years to ensure ongoing value.
Next steps to apply with confidence
Practical next steps start with a short list of home loans and a written comparison that shows advertised and comparison figures plus any likely insurance costs.
Map a timeline with buffers for valuation, verification and settlement. Lock a fixed rate home segment if certainty for a set term is vital.
Confirm first home buyers eligibility to avoid LMI, or price Helia premiums if borrowing over 80% LVR. Ask the commonwealth bank australia to model repayments for a year and test different rates and wealth package effects.
Use a checklist for deposit source, income docs and spending summaries before you apply. Compare banks, factor discharge and transition costs, then align the mortgage mix, repayment frequency and an annual review.
