CBA mortgage customer? You may have just been moved to minimum repayments
01 May 2020
Starting today, the Commonwealth Bank (CBA) will automatically switch 748,000 home loan customers onto the minimum repayments required to service their loans.
CommBank customers who are currently making more than the minimum repayments towards their mortgage will be moved to the minimum required between May 1-5, though those already paying the minimum will be unaffected.
While borrowers who wish to continue to pay more than the minimum will still be able to, they’ll only be able to from May 6 after contacting the bank or making the change themselves online.
According to the Commonwealth Bank website, the decision is part of a wider initiative to protect the financial wellbeing of customers and put more money back in their pockets during the COVD-19 pandemic.
“We're currently experiencing an unprecedented period of economic disruption, and it‘s important that we do our part to support our customers and communities through this difficult time,” as per the CommBank site.
“We've already seen the number of customers reducing their repayments to the minimum increase substantially in March, and this change will assist customers who may require access to the additional cash flow.”
However, the move has been also met by criticism, including thousands of complaints from Commonwealth Bank customers unhappy with the bank’s decision.
“I understand why some customers are frustrated at not having been given a choice up front,” said Mozo Banking Expert, Peter Marshall. “There’s no reason why the bank couldn’t have simply reminded customers who are paying more than they need too that they have the option of reducing their payments, rather than imposing a blanket change.”
“A lot of people will have made a conscious decision to pay their loan off faster than they need to. And if they have their eyes off the ball - which may well be the case at the moment - and they forget to switch back to their normal repayments, it could very well end up costing them.”
According to Mozo’s extra repayments calculator, paying an extra $100 a month on a $400,000 home loan (3.50% interest rate) over 25 years would result in the loan being paid off 22 months earlier and a saving of $16,403 in interest, compared to a situation where normal repayments were being made.
RELATED: 1,000 CommBank customers have already bought property using First Home Loan Deposit Scheme
Looking for another way to reduce your mortgage repayments? Switching to a lower rate could be just the ticket. To start comparing, check out the great offers below, or check out the Mozo home loan comparison table for the latest rates from 80 different lenders.
Compare home loans
Rates updated daily. Advertiser disclosure.
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1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
$1234
Product details Close detailsSmart Booster Home Loan
1 Year Discounted Variable Rate, Owner Occupier, Principal & Interest, <80% LVR
1.99% p.a.variable for 12 months and then 2.48% p.a. variable
2.47% p.a.
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
Smart Booster Home Loan
A super low introductory rate home loan with no monthly or ongoing fees. Unlimited free redraws and unlimited additional repayments to help you build your equity and own your home sooner. Multiple loan splits available. (Rates revert after introductory period ends). 20% minimum deposit required.
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1.99% p.a.variable for 12 months and then 2.48% p.a. variable
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2.47% p.a.
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$520
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$0.00
-
$0.00
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yes - free
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yes - free
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Optional - with 0.10% additional interest
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$520
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80.00%
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$50,000
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$1,000,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
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Read our Mozo Review to learn more about the Smart Booster Home Loan
Details Close
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-
2.34% p.a. variable
2.34% p.a.
$1234
Product details Close detailsUHomeLoan - Discount Offer
Owner Occupier, Principal & Interest
2.34% p.a. variable
2.34% p.a.
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
UHomeLoan - Discount Offer
Enjoy a super low rate, $0 fees and easy application with the Mozo Experts Choice Home Lender Bank of the Year.^ Free redraw with flexible repayments. Min 20% deposit.
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2.34% p.a. variable
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2.34% p.a.
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$0
-
$0.00
-
$0.00
-
yes - free
-
yes - free
-
no
-
$0
-
80.00%
-
$100,000
-
-
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
-
Read our Mozo Review to learn more about the UHomeLoan - Discount Offer
Details Close
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-
2.19% p.a. variable
2.19% p.a.
$1234
Product details Close detailsCelebrate Variable Home Loan
<60% LVR, Owner Occupier, Principal & Interest
2.19% p.a. variable
2.19% p.a.
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
Celebrate Variable Home Loan
Fast online application with no fees. Free extra repayments and redraw facility. Min 40% deposit. Crowned Best New Home Loan for 2020 by the Mozo Experts.^
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2.19% p.a. variable
-
2.19% p.a.
-
$0
-
$0.00
-
$0.00
-
yes - free
-
yes - free
-
no
-
$0
-
60.00%
-
$100,000
-
$2,000,000
-
Variable
-
Principal & Interest
-
Owner Occupier
-
Weekly, Fortnightly, Monthly
-
Read our Mozo Review to learn more about the Celebrate Variable Home Loan
Details Close
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-
2.09% p.a.
fixed 2 years2.56% p.a.
$1234
Product details Close detailsBasic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR 70-80%
2.09% p.a.
fixed 2 years2.56% p.a.
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
Basic Home Loan
Flexible loan structure – create up to six loan accounts with different rate and repayment types. Free redraw from your loan using Macquarie Online.
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2.09% p.a.
fixed 2 years -
2.56% p.a.
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$0
-
$0.00
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$400.00
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yes - free
-
yes - free
-
no
-
$0
-
80.00%
-
$150,000
-
$750,000
-
Fixed
-
Principal & Interest
-
Owner Occupier
-
Monthly
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Read our Mozo Review to learn more about the Basic Home Loan
Details Close
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-
1.89% p.a.
fixed 2 years2.94% p.a.
$1234
Product details Close detailsFixed Home Loan Special Offer Home Package Plus
Owner Occupier, Principal & Interest, <80% LVR
1.89% p.a.
fixed 2 years2.94% p.a.
Competitive low rates starting from 1.89% (2.94% comparison rate) 2 years fixed for owner occupiers. No monthly account keeping fees & No loan establishment fee.
Fixed Home Loan Special Offer Home Package Plus
Competitive low rates starting from 1.89% (2.94% comparison rate) 2 years fixed for owner occupiers. No monthly account keeping fees & No loan establishment fee.
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1.89% p.a.
fixed 2 years -
2.94% p.a.
-
$0
-
$375.00 yearly
-
$350.00
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yes - free up to $500 per month
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no
-
no
-
$0
-
80.00%
-
$150,000
-
-
-
Fixed
-
Principal & Interest
-
Owner Occupier
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Weekly, Fortnightly, Monthly
-
Read our Mozo Review to learn more about the Fixed Home Loan Special Offer
Details Close
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^See information about the Mozo Experts Choice Home loans Awards
