CommBank stops bundling credit card and mortgage applications
While customers still have the ability to apply for a new credit card at the same time as a mortgage, the bank will now assess requests separately, with the home loan taking top priority.
Mortgage brokers were notified about the changes on Wednesday.
CommBank has also scrapped its “highest income earner” rule, which means that couples applying for a credit card with CBA will be assessed on their individual income, liabilities and shared living expenses.
While it may seem more efficient to opt for a credit card during the home loan application process, Mozo Product Data Manager Peter Marshall has warned that you may wind up with a higher purchase rate by doing so.
“One of the biggest financial commitments you’re ever going to make is probably a home loan. So when you’re filling out your mortgage application you’re likely not thinking about whether a credit card being offered at the same time is the right card for you.”
Instead of just ticking the box, Marshall suggested Aussies should shop around and consider options from other credit card providers first.
According to the Mozo database, CommBank credit cards offer purchase rates from 13.24% to 20.24%. However, a range of low rate credit cards from smaller banks and challenger brands come with rates well below 10%, giving customers an even greater reason to compare rates across hundreds of cards at the Mozo’s hub before signing that dotted line.