The Commonwealth Bank of Australia (CBA) doesn’t always have the lowest mortgage, yet it is known for offering competitive home loans and a wide array of financial solutions. In fact, some of the Commonwealth Bank’s loyal clients complain about their policies; however, no one can deny that CBA’s expertise is top-notch.
The Commonwealth Bank is the largest out of the “Big 4” banks in Aussie. As such, it’s no surprise that their mortgage products are some of the most diverse. Here’s what you can expect when you get your mortgage at CBA.
As one of the major banks in Australia, CBA is excellent for most home buyers and investors looking to apply for a mortgage. Whether you’re buying a home or a property for yourself, they offer flexible lending policies. They’re also a great option if you’re buying from a rural locale.
With CBA, you’re likely to get a practical assessment of your current financial situation. Complex loan applications will get better results due to their experienced financial team.
The bank’s assessment of your mortgage will also be more sensible due to their credit scoring. They even have a variety of features that make payments lighter and easier.
The most common home loan type that Commonwealth Bank offers is the Extra Home Loan. It has a principal & interest rate that ranges from 2.79% to 3.14% per annum. These rates will vary, especially with the loan to value ratio.
The low annual fee on your mortgage also means a more significant interest rate discount from CBA. They will likely waive fees on many of their bank products. CBA can even provide discounted insurance with their Wealth Package.
The Extra Home Loan is the best pick for people with loans with over $250,000 and an 80% or below LTV ratio. If you need a smaller mortgage, CommBank’s 3-year Special Economiser and No Fee Variable Rate Home Loan is for you.
If you need extra flexibility in your credit, they also have the Viridian Line of Credit.
With everything that’s good with Commonwealth Bank mortgage, it also has its problems. There are many complaints about CBA’s service, which sometimes makes them regrettable to deal with.
Based on Commonwealth Bank mortgage reviews, a system calculates mortgage offers and has certain bias against existing customers. Many complaints online note how more significant discounts come to non-CBA customers.
If you are a loyal customer with CBA, chances are you’re going to get a smaller discount. According to CBA mortgage reviews, the bank is infamous for refusing to give their loyal clientele a better deal. Newer customers can get as much as 30 basis points more than existing customers.
CBA also offers higher interest rates for an LTV ratio of over 90%. Their LMI premiums can be expensive, especially for investors and self-employed people.
Before you get a home loan, the most responsible thing to do is to compare your options first. Check out Makes Cents’ reviews on various mortgage plans and consider your needs and paying capacity as you make your decision.