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.
Fixed home loan comparisons on Mozo
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Fixed Home Loan
- Owner Occupier
- Principal & Interest
- LVR <95%
Go to site- Interest rate
-
5.69
%
p.a.
Fixed 3 years
- Comparison rate
-
6.28
%
p.a.
- Initial monthly repayment
-
$2,899
Get the security of a competitive fixed rate home loan for 2 years with IMB. Get up to $4,000 cashback (T&Cs apply). Up to 12 months repayments in advance without penalties. Free Internet and Mobile Banking redraws (T&Cs apply). Up to a 30 year loan term. Split loan available. No offset account.
- interest rate
-
1 year - 6.19% p.a. (6.45% p.a.*)
2 years - 5.69% p.a. (6.34% p.a.*)
3 years - 5.69% p.a. (6.28% p.a.*)
4 years - 5.89% p.a. (6.30% p.a.*)
5 years - 5.89% p.a. (6.27% p.a.*)
- Fixed loan revert rate
-
6.34% p.a.
- Upfront fees
-
$799
- Ongoing fees
-
$6.00 monthly
- Discharge Fee
-
$350.00
- Package
-
-
- Maximum loan to value ratio
-
95.00%
- minimum borrowing amount
-
$10,000
- maximum borrowing amount
-
$5,000,000
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$2,899
- Extra repayments
-
yes - free up to 1 year in advance
- Redraw facility
-
yes - free
- Minimum redraw amount
-
$500.00
- Offset account
-
no
- Split account
-
yes
- Other restrictions
-
Monthly fee only applies to fixed period of loan.
- Other benefits
-
-
- Special Offers
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$4,000 cashback for loans $750,000 and above with a maximum LVR of 80%, settled within 90 days of application for refinancers or 180 for purchase loans. $3,000 for loans between $500k and $749k, $2,000 for loans between $250k and $499k.
Read reviews and learn more about IMB Bank home loans
Go to site -
Fixed Rate
- Owner Occupier
- Principal & Interest
- <80% LVR
- Interest rate
-
5.74
%
p.a.
Fixed 3 years
- Comparison rate
-
6.81
%
p.a.
- Initial monthly repayment
-
$2,915
Enjoy up to $3000 cashback for eligible first home buyers and $2000 cashback for refinancers on eligible home loans with the ANZ Fixed Rate Home Loan. Get the security of repayment certainty with a competitive locked in rate. No ongoing fees to pay. Offset account on 1-year fixed loans ($10/month fee applies). Interest-only payments allowed.
- interest rate
-
1 year - 6.14% p.a. (7.13% p.a.*)
2 years - 5.74% p.a. (6.94% p.a.*)
3 years - 5.74% p.a. (6.81% p.a.*)
4 years - 5.89% p.a. (6.75% p.a.*)
5 years - 5.99% p.a. (6.69% p.a.*)
- Fixed loan revert rate
-
7.24% p.a.
- Upfront fees
-
$160
- Ongoing fees
-
$0.00
- Discharge Fee
-
$160.00
- Package
-
-
- Maximum loan to value ratio
-
80.00%
- minimum borrowing amount
-
$20,000
- maximum borrowing amount
-
-
- type of mortgage
-
Fixed
- Repayment types
-
Principal & Interest
- Availability
-
Owner Occupier
- Repayment options
-
$2,915
- Extra repayments
-
yes - free up to to lesser of 5% of original fixed loan amount, or $5,000 each year
- Redraw facility
-
no
- Minimum redraw amount
-
-
- Offset account
-
Optional - $10 per month - 1 year fixed term only
- Split account
-
yes
- Other restrictions
-
-
- Other benefits
-
No monthly fee after end of fixed rate term. Lock your fixed rate for 90 days for a fee of $750 per $1m in lending (or part thereof).
- Special Offers
-
$3,000 cashback for eligible First Home Buyers borrowing $250k+, $2,000 cashback when you refinance loans of $250k+, <80% LVR, settle within 180 days for first home buyers, 120 days for refinances. Excludes refinances from ANZ, ANZ Plus and Suncorp.
Read reviews and learn more about ANZ home loans
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Your selected home loans
* 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.
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