CommBank offers further coronavirus relief to home loan and credit card customers

As the coronavirus outbreak leaves many Australian households in a tight financial spot, Commonwealth Bank has stepped in to provide another round of support to its home loan and credit card customers. 

The big bank announced that in addition to allowing all of its home loan customers to hit pause on their repayments for six months, it will help offset any interest on interest costs accumulated over the deferral period. 

“When a home loan repayment is deferred for six months, interest is calculated and added to the loan balance each month which can result in customers paying interest on interest each month,” CommBank’s Group Executive of Retailing Banking Services, Angus Sullivan said in a statement released today. 

“To support more Australians, we will make a one-time payment to all customers who are receiving a home loan deferral because of coronavirus.”

According to CBA estimates, this means for an average $350,000 home loan, about $45 would be refunded, although the exact figure will depend on the loan amount and interest rate. 

Meanwhile, credit card customers can also expect some relief from CommBank, if they failed to meet their minimum repayment on time last month due to COVID-19.

CommBank said it will automatically refund their late fees and interest for March. 

“This support is focused on customers who are finding it difficult to meet their current commitments before further Government stimulus arrives in April and May,” Sullivan said. 

RELATED ARTICLE: What does the government’s latest coronavirus stimulus package mean for you?

What other support is CommBank offering to households? 

Today’s announcement builds on earlier measures introduced by CommBank after the emergency Reserve Bank rate cut last month.

This includes reducing repayments to the minimum for all existing variable home loan customers on principal and interest, effective from May 1. 

CommBank has also raised its 12 month term deposits by 60 basis points to 1.70%, available on balances from $5,000 up to $2 million. 

“It will ensure all Australians are now able to earn a return on their savings which is more than 1.45% higher than the official cash rate,” CommBank Chief Executive Officer, Matt Comyn said in a statement following the latest RBA cut. 

As for customers looking to fix their home loan, CommBank announced it will slash a massive 70 basis points from its 1, 2, 3 year fixed home loans, bringing the rate down to 2.29%, effective May 1. 

RELATED ARTICLE: Big bank emergency support: How have CommBank, NAB, Westpac and ANZ responded to the latest RBA cut? 

To see how other lenders are helping their customers, check out our guide on Australian banks’ emergency coronavirus relief packages

Or if you’re interested in locking your home loan rate, we’ve got some offers for you down below, plus even more options over at our fixed home loans comparison table.

Compare fixed home loans - last updated 19 March 2024

Search promoted home loans below or do a full Mozo database search. Advertiser disclosure
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR<70%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.13% p.a.

    No upfront or ongoing fees. Free extra repayments and redraw facility. Option to earn Qantas points. Min 30% deposit required. Borrow up to $750,000.

    Compare
    Details
  • Flex Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 3 years
    6.41% p.a.

    Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 20% deposit required.

    Compare
    Details
  • Fixed Rate Loan with Orange Advantage

    Orange Advantage, Owner Occupiers, Principal & Interest, LVR <80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    fixed 2 years
    6.16% p.a.

    Know exactly what your repayments will be, and you can fix your rate for up to 5 years. No monthly, annual fee or transaction fees. Free additional repayments (less than $10,000 p.a.). Valid for loans of $50,000 up to $2,000,000.

    Compare
    Details
  • Mozo Expert Choice Badge
    Fixed Rate Home Loan

    Owner Occupier, Principal & Interest

    interest rate
    comparison rate
    Initial monthly repayment
    5.99% p.a.
    fixed 2 years
    6.24% p.a.

    Secure a low rate and enjoy the certainty of repayments, with the BCU Fixed Rate Home Loan. Save with no ongoing annual fees. Pay up to $25,000 extra during a fixed period (T&Cs apply). Lock in for up to 5 years.

    Compare
    Details
  • Basic Home Loan

    Fixed, Owner Occupier, Principal & Interest, LVR 70-80%

    interest rate
    comparison rate
    Initial monthly repayment
    6.09% p.a.
    fixed 3 years
    6.19% p.a.

    Get a flexible loan structure with up to six loan accounts with different rate types. Make free extra repayments. Enjoy free redraw facility. No upfront or ongoing fees. Option to earn Qantas points.

    Compare
    Details

* WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.

** Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.

^See information about the Mozo Experts Choice Home Loan Awards

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.