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 - rates updated daily
UHomeLoan (1 Yr Fixed)
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.79% p.a.
fixed 1 year2.18% p.a.Fast, easy to apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.
UHomeLoan
Fast, easy to apply and no ongoing fees. Choose between weekly, fortnightly or monthly repayments. 1 year fixed rates are for new Owner Occupier Principal & Interest loans.
- interest rate
- 1.79% p.a.
fixed 1 year
- comparison rate
- 2.18% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 during fixed rate term
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $100,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $395 Establishment fee waived for fixed rate loans that settle by 30 September 2022.
Read our Mozo Review to learn more about the UHomeLoan
Fixed Rate Home Loan
Home Loan Package, Owner Occupier, Principal & Interest, LVR <80%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 3 years2.67% p.a.Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Refinancers borrowing $250,000 or more could receive $3,288 cashback (T&Cs, eligibility and lending criteria apply).
Fixed Rate Home Loan
Ability to split your home loan between Fixed and Variable. Dedicated Relationship Manager. Min 20% deposit. Refinancers borrowing $250,000 or more could receive $3,288 cashback (T&Cs, eligibility and lending criteria apply).
- interest rate
- 2.09% p.a.
fixed 3 years
- comparison rate
- 2.67% p.a.
- upfront fees
- $0
- Ongoing fees
- $390.00 yearly
- Discharge Fee
- $300.00
- Extra repayments
- yes - free up to $10,000 p.a.
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $500,000
- maximum borrowing amount
- $7,500,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- Receive $3,288 cashback when you refinance an existing home loan of $250,000. Must apply by 31 March 2022 and settle by 31 May 2022.
Read our Mozo Review to learn more about the Fixed Rate Home Loan
Own Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR <60%
interest rate
comparison rate
Initial monthly repayment
2.34% p.a.
fixed 2 years2.59% p.a.Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
Own Home Loan
Competitive fixed rate. Multiple offset accounts available. Borrowers can also make extra repayments. Redraw facility available. Simple online application process. 40% deposit required.
- interest rate
- 2.34% p.a.
fixed 2 years
- comparison rate
- 2.59% p.a.
- upfront fees
- $250
- Ongoing fees
- $250.00 yearly
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 per fixed rate term
- Redraw facility
- yes - free
- Offset account
- yes
- Maximum loan to value ratio
- 60.00%
- minimum borrowing amount
- -
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Own Home Loan
Special Fixed Rate Home Loan (Premium Plus Package, LVR <80%)
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
2.24% p.a.
fixed 2 years3.73% p.a.Lock in a low fixed rate or choose to split your loan between fixed and variable. Insurance discounts and no fee credit card or zero fee personal loan available. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.
Special Fixed Rate Home Loan
Lock in a low fixed rate or choose to split your loan between fixed and variable. Insurance discounts and no fee credit card or zero fee personal loan available. $2,000 cashback offer for investor & owner occupied home loans over $250k with LVR ≤80% when refinancing to Newcastle Permanent. Limited time offer extended, T&Cs apply.
- interest rate
- 2.24% p.a.
fixed 2 years
- comparison rate
- 3.73% p.a.
- upfront fees
- $0
- Ongoing fees
- $395.00 yearly
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $25,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- -
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $2,000 cashback when you refinance your home loan from another financial institution when you apply by 31 March 2022 and are funded by 31 May 2022, min $250k, LVR <80%
Read our Mozo Review to learn more about the Special Fixed Rate Home Loan
Well Balanced Fixed
Owner Occupier, Principal & Interest, LVR <80%
interest rate
comparison rate
Initial monthly repayment
2.05% p.a.
fixed 2 years1.92% p.a.Super low fixed rate and only 20% deposit required. Optional 100% offset account. Free extra repayments and redraw facility. Flexible repayment schedule.
Well Balanced Fixed
Super low fixed rate and only 20% deposit required. Optional 100% offset account. Free extra repayments and redraw facility. Flexible repayment schedule.
- interest rate
- 2.05% p.a.
fixed 2 years
- comparison rate
- 1.92% p.a.
- upfront fees
- $785
- Ongoing fees
- $0.00
- Discharge Fee
- $300.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- Optional - $10 per month
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $200,000
- maximum borrowing amount
- $2,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Well Balanced Fixed
* 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, loan amount and term entered. 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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