Commonwealth Bank Home Loans: Rates, Fees, Eligibility and Repayments

Commonwealth Bank home loans come in several structures, and the most suitable option depends on far more than an advertised interest rate. Your deposit, loan-to-value ratio (LVR), whether you will live in the home, fixed versus variable repayments, offset features, fees and long-term plans all affect the decision. This independent guide explains the main CommBank home loan options, how to read a Key Facts Sheet, compare real costs, prepare an application and assess refinancing without promising any particular rate or approval.

Information and official lender pages were reviewed in October 2026. Products, discounts, pricing, government schemes and eligibility can change. This article is educational rather than personal financial advice, and Cen Xianyuan is not affiliated with Commonwealth Bank or a licensed mortgage broker. Rates in the worked examples below are hypothetical, not quoted CommBank prices.

Quick answer: what should you check first?

• Start with your actual borrowing circumstances. Check income after tax, existing liabilities, available deposit and a repayment budget that still leaves an emergency buffer.
• Compare written loan facts, not slogans. Obtain product Key Facts Sheets with matching loan amount, term, occupancy status and repayment method.
• Check how the rate can change. A variable rate can rise; a fixed rate can revert to a different rate at the end of its term.
• Price loan features realistically. An offset or package may reduce interest, but account and package fees can eat into savings.
• Confirm the total amount payable. Include lender charges, conveyancing, transfer duty, possible lenders mortgage insurance, property costs and any refinance break fees.
• Use the bank’s current official documents. Avoid undated ‘best-rate’ comparisons and screenshots from social media.

Contents

Loan types and product families · Interest and comparison rates · Repayment examples · Offset and redraw · Deposit, LVR and LMI · Fees and upfront costs · How to apply · Refinancing · Mistakes to avoid · FAQs

Commonwealth Bank home loan types: what is different?

CommBank markets several mortgage families for home buyers and investors, including Simple Home Loan, Digi Home Loan, and standard variable and fixed-rate products. Not every product, rate or feature is available to every borrower. The bank may change product names and charges, so confirm the product’s current fact sheet before comparing.

Loan option	Usually worth examining when	Important limitation to check
Simple variable-style product	You value a relatively straightforward structure and may want eligible offset/redraw features	Current fee schedule, LVR pricing, whether offset is available for your configuration
Digi Home Loan	You prefer an online-led application and eligible digital account features	Digital eligibility, supported scenarios, offset restrictions and service fees
Standard Variable home loan	You want to compare a variable loan with broader features or package arrangements	Rate variability, annual package cost and whether features justify the price
Fixed-rate period	You want certainty for part of your mortgage term	Break costs, restrictions on repayments and the revert rate after the term
Split fixed/variable arrangement	You want certainty on one portion and flexibility on the other	Separate loan balances, costs, features and possible break rules
Investment or interest-only structure	A property or cash-flow scenario may need a different repayment profile	Higher total interest, principal balance and stricter underwriting

A fixed-rate mortgage is commonly fixed for a limited period rather than its entire 25- or 30-year term. When the period ends, the contract normally moves to a variable/revert rate unless you choose an eligible alternative. ASIC Moneysmart’s fixed-versus-variable guide explains these trade-offs and why split loans add complexity.

Interest rate versus comparison rate: don’t confuse them

The interest rate is the annual percentage used to calculate the contractual interest charge on the balance. The comparison rate includes the interest rate and certain fees on a standardized loan example. It helps you compare costs on the assumptions disclosed, but it does not reflect every fee or the exact amount you intend to borrow. A product with a lower advertised rate can still have a less favorable overall cost once fees are considered.

• Ask for the interest rate applicable to your own borrowing profile and the date the offer expires.
• Compare fixed, variable, offset and package products under equivalent terms.
• Look for establishment, monthly servicing, offset, annual package, discharge and possible fixed-break charges.
• Review the interest rate after any introductory or fixed period; the revert rate can materially change the repayment.
• Do not infer an automatic rate adjustment from each Reserve Bank cash-rate decision: lenders decide when and how to change their variable rates.

For a consistent format, request an Australian mortgage Key Facts Sheet for each shortlisted product. The government-backed guide says it allows comparison of repayments, total costs, the personalized comparison rate, upfront charges and ongoing fees on a consistent basis.

Worked repayments: A$500,000 over 30 years

Assume a fully amortizing principal-and-interest loan of A$500,000, paid monthly for 30 years. The table deliberately uses round, hypothetical fixed rates throughout the whole 30 years so that the influence of interest can be seen without pretending to forecast future rate movements. Real repayments may differ because lenders can calculate interest daily, rates can change, and fees may apply.

Illustrative annual rate	Approx. monthly principal + interest	Approx. total 30-year repayments	Approx. total interest
5.0%	A$2,684	A$966,279	A$466,279
6.0%	A$2,998	A$1,079,191	A$579,191
7.0%	A$3,327	A$1,197,544	A$697,544
8.0%	A$3,669	A$1,320,776	A$820,776

At 6%, a modeled payment is about A$2,998 per month. At 7%, it becomes about A$3,327, a difference of approximately A$329 per month. This excludes council rates, insurance, maintenance and other ownership costs. A borrower should also stress-test a 2–3 percentage-point rate rise; Moneysmart recommends checking the higher-rate scenario rather than assuming the initial payment will stay affordable.

Why the same monthly repayment can hide a different total cost

On A$500,000 at a hypothetical 6% constant rate, a 30-year loan has an estimated payment of A$2,998 per month. A 25-year term would raise the modeled payment to about A$3,222, but repay the principal sooner and reduce total interest. Compare the payment together with total repayments and your ability to sustain it; a lower monthly installment is not automatically the cheapest borrowing decision.

Offset accounts, redraw and extra repayments

An eligible Everyday Offset account may reduce the loan balance on which interest is calculated. For example, if your mortgage balance is A$500,000 and you keep A$20,000 in an eligible 100% offset, interest may be calculated on about A$480,000 rather than A$500,000 while that balance remains. This is a simplified illustration, not a guaranteed monthly saving: interest calculation dates, eligible balances and fees matter.

At a hypothetical annual 6% rate, A$20,000 in a fully offset account corresponds to approximately A$1,200 less interest in a full year if the balance and rate remain constant. That is not the same as lowering the contractual monthly payment by exactly A$100. Some arrangements keep the scheduled repayment unchanged, allowing more of it to reduce principal.

Feature	How it can help	What to verify
Offset account	Potentially reduces interest calculated against eligible linked balances	Full or partial offset, number of accounts, fees, eligibility
Redraw	May allow access to extra loan repayments	Minimums, timing, restrictions, account access
Additional repayments	Can reduce principal and interest over time	Limits during fixed terms and any associated break fees
Package benefits	May bundle lending and banking features	Annual fees, discount eligibility and actual net benefit

Important: the lender has published product updates effective from October 2026, including fee changes for some Simple and Digi arrangements. Fee tables and feature descriptions on older pages may lag or differ by product. Check current Simple and Digi documents, including footnotes, before quoting any fee.

Deposits, LVR and lenders mortgage insurance

The loan-to-value ratio (LVR) compares the loan amount with the lender-assessed property value. For a property valued at A$750,000, borrowing A$600,000 gives an 80% LVR; borrowing A$675,000 gives a 90% LVR. The bank may use its valuation rather than the advertised selling price. Higher LVRs can influence product eligibility, pricing and whether extra risk charges apply.

Assumed property valuation	Deposit	Borrowing amount	LVR
A$750,000	A$150,000 (20%)	A$600,000	80%
A$750,000	A$75,000 (10%)	A$675,000	90%
A$750,000	A$37,500 (5%)	A$712,500	95%

These rows deliberately ignore stamp duty, legal fees and any government support. They show LVR math only, not that CommBank will approve any of these arrangements. Where applicable, lenders mortgage insurance (LMI) protects the lender, not the borrower; some lower-deposit or special programs work differently. Compare the total amount needed at settlement, not just the percentage on the listing.

What first-home buyers should verify

• Eligibility for any current Australian Government or state support scheme, including residence and property-price limits.
• Whether mortgage insurance or an alternative fee is payable and how it is charged.
• The actual purchase-contract deposit, which is separate from the amount of equity ultimately used to obtain the loan.
• State-based transfer duty, registration and any concessions.
• Solicitor or conveyancer fees and inspection costs before signing contracts.
• A realistic emergency reserve after settlement.

The full home-buying cost checklist

A mortgage budget should include both one-time costs and recurring ownership expenses. The payment visible in a loan calculator may be only one part of the outlay.

Cost	When it may occur	How to verify
Loan establishment / service fees	Application, account opening or ongoing servicing	Read the specific product fact sheet
Valuation	When the lender assesses security	Ask whether an independent valuation fee applies
Stamp or transfer duty	Property purchase or relevant transactions	Check the official state revenue office
Conveyancing and registration	Contract review and settlement	Ask the licensed professional for a written estimate
Lenders mortgage insurance or premium	Common in some high-LVR transactions	Obtain a personalized quote
Home insurance	Before and after settlement	Check coverage, exclusions, premiums and excesses
Council/strata and maintenance	Ongoing property ownership	Obtain current property statements and inspect the home
Early discharge or fixed-break charge	If you switch or repay under applicable terms	Request a current payout or break-cost quote

Applying for a CommBank home loan: step by step

According to CommBank’s current home-loan process, the typical pathway includes conditional preapproval, the formal application, property purchase documentation, loan offer and settlement. Conditional preapproval can be valid for a specified period (currently described as 90 days on that bank page), but it is not a binding commitment to finance a particular property.

1. 1. Check affordability. List after-tax income, existing loans, credit-card limits, regular living expenses and reasonable contingency costs.
2. 2. Choose the borrowing structure. Compare owner-occupier versus investor terms, LVR, fixed/variable options and any offset requirements.
3. 3. Prepare evidence. Identify acceptable ID, payslips, employer records, bank statements, tax documents and liabilities.
4. 4. Seek a conditional assessment. Understand its assumptions and expiry; do not treat it as formal approval.
5. 5. Select and assess the property. Have a qualified conveyancer examine the contract and appropriate professionals inspect the building.
6. 6. Submit the formal loan application. The bank may require valuation, credit checks, updated financial information and additional documents.
7. 7. Review the written offer. Check actual interest, fees, repayment frequency, special conditions and whether it matches your expectations.
8. 8. Settle and budget for ownership. Arrange the required funds, insurance, inspections and recordkeeping before taking possession.

CommBank’s application checklist lists forms of ID, income evidence, tax documents for some self-employed applicants, sale contracts and details of outside debts. It also provides secure online and specialist-assisted application options. Exact document requirements differ by applicant and must be confirmed with the lender.

Common application situations

• Employees: payslips, employment confirmation and bank statements are commonly relevant.
• Self-employed applicants: business tax returns, financial statements, notices of assessment or accountant records may be required.
• Joint applicants: both borrowers’ information and liabilities matter; understand joint responsibility for the debt.
• Investors: rental income, other mortgages and investor-specific pricing can affect the assessment.
• Construction borrowers: building plans, contracts, progress payments and valuation conditions may add steps.

Refinancing a Commonwealth Bank home loan

If you already have a mortgage, first ask your current lender for a better offer. Then compare loans using the same remaining term, loan balance and features. As ASIC Moneysmart’s switching guide explains, a nominally lower rate may be outweighed by break costs, discharge/application fees, insurance or an unnecessarily extended loan term.

Worked refinance test: assume moving loans would cost A$2,400 upfront and save A$100 a month after ongoing fee differences. The simple break-even period is 24 months. That is not a guaranteed saving: if the interest rate changes, you move home, fees differ or the new loan term is longer, the outcome changes. Use a complete switch calculation rather than only a division of upfront cost by monthly difference.

• Get the current lender’s written payout and potential fixed-break quote.
• Ask whether a rate reduction can be negotiated without moving lenders.
• Compare a new loan with the same remaining repayment period, not an automatically restarted 30-year term.
• Include application, property valuation, insurance and discharge costs.
• Check any loss of redraw or offset features and the effect on your cash flow.
• Use the Moneysmart mortgage switching calculator to test savings and break-even.
• Read the new contract and ensure the switch does not interrupt agreed settlement arrangements.

Three borrowing scenarios and what each should prioritize

Scenario A: first-home buyer with a smaller deposit

A buyer looking at a A$700,000 home with A$70,000 saved has a nominal 10% deposit before costs. That does not mean the buyer has enough to settle. They still need to budget for duty where applicable, legal expenses, inspections and emergency savings. Their key questions are low-deposit eligibility, possible LMI, actual rate, and affordability if rates rise.

Scenario B: existing owner choosing a fixed rate

A homeowner who expects to sell in 18 months should not pick a multi-year fixed term solely for certainty. They need to check the potential break fee if the property is sold before expiry, whether their repayments can be topped up, and what happens if refinancing becomes necessary.

Scenario C: household keeping money in an offset

A household with a stable A$25,000 cash buffer may value a qualifying offset arrangement. They should compare the estimated interest saved with account/package charges and ensure they do not compromise emergency access. A lender may calculate interest daily, so average balances are more informative than the highest balance seen on one day.

Common mistakes that can make a mortgage more expensive

• Trusting an undated headline rate: lender pricing can change and your LVR can alter eligibility.
• Ignoring the comparison rate: certain fees can outweigh a slightly cheaper interest percentage.
• Forgetting the revert rate: a fixed-period payment is not necessarily the post-fixed payment.
• Taking a longer loan to lower payments: the total interest bill may increase substantially.
• Treating redraw and offset as identical: the arrangements and account access rules can differ.
• Assuming LMI is borrower protection: it protects the lender when it applies.
• Overlooking state-based costs: transfer duty and other charges vary by location.
• Borrowing the maximum offered: formal eligibility is not the same as day-to-day comfort.
• Using an informal mortgage quote: ask for dated written terms and the applicable legal lender.
• Ignoring data-security risks: never upload ID, tax information or bank statements to an unverified lookalike domain.

Frequently asked questions

Which Commonwealth Bank home loan is best?

There is no universal best. Compare Simple, Digi, variable/fixed and eligible package options based on LVR, fees, features, risk tolerance and written terms. A low headline rate alone is not enough.

Does CommBank offer a fixed home loan for 30 years?

A 30-year mortgage term should not be confused with a 30-year fixed-rate period. Fixed-rate products usually lock the interest rate for a shorter period; check the product’s fixed term and revert conditions.

Can I get a loan with less than a 20% deposit?

Some lending options can accommodate smaller deposits, but approval and LMI or scheme eligibility vary. Ask for the full required cash at settlement, not only the percentage shown in advertising.

How much does a 1% interest rise change a A$500,000 mortgage?

Using the model above, the monthly principal-and-interest payment rises from around A$2,998 at 6% to A$3,327 at 7% for a 30-year loan, a difference of around A$329. Actual rate changes affect different borrowers differently.

Is an offset account free?

Not necessarily. Some products charge or previously charged offset or service fees. Confirm the current dated fee schedule for the exact loan product, including the October 2026 updates noted on official product pages.

What is the difference between redraw and offset?

Offset usually involves a linked qualifying account that reduces the balance on which interest is calculated. Redraw is access to eligible extra repayments on a loan, subject to lender rules. They are not interchangeable.

Does conditional preapproval mean my mortgage is guaranteed?

No. Formal approval can still depend on income verification, credit checks, the chosen property’s valuation, legal documents and other requirements.

What is the purpose of the Key Facts Sheet?

It gives a more standardized way to compare repayment and cost details for eligible Australian home loans. Ask each lender for one using the same assumptions.

Should I refinance every time market rates fall?

No. Compare break/discharge fees, new-loan costs, remaining term and the value of retained features. The net saving over your expected ownership period matters.

Can an existing borrower negotiate rather than switch banks?

It may be worth requesting a better deal from the current lender. Compare any new written offer with alternatives and check the associated fees.

What if I am self-employed or buying an investment property?

Expect lender-specific documentation and additional assessment of income, rental assumptions, expenses and existing debt. Ask CommBank for the current process relevant to your situation.

Where can I check live CommBank rates?

Go to the official CommBank home-loan pages, obtain a dated Key Facts Sheet and confirm the final offer from the bank. This article deliberately does not quote unverified live rates.

Sources, updates and editorial standards

Primary lender sources: CommBank home loans, Simple, Digi, offset features, application documents. Independent consumer references: ASIC Moneysmart choosing a home loan, fixed vs variable and refinancing costs.

The figures in the worked examples use standard amortization arithmetic, are rounded and assume unchanged rates, ordinary monthly repayments and no additional fees. They are not offers or predictions. This independently written guide is not paid for by Commonwealth Bank and is not a first-hand account of applying for a mortgage. For step-by-step application documentation, read our separate CBA home loan application and refinancing guide. Please confirm all financial details with a licensed adviser or the bank where appropriate.