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
Special Offer Fixed Rate Home Loan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.99% p.a.
fixed 3 years2.70% p.a.Limited time 3 Year Fixed Rate Special Offer for purchase or refinance. Rate lock option available. No monthly or ongoing fees.
Special Offer Fixed Rate Home Loan
Limited time 3 Year Fixed Rate Special Offer for purchase or refinance. Rate lock option available. No monthly or ongoing fees.
- interest rate
- 1.99% p.a.
fixed 3 years
- comparison rate
- 2.70% p.a.
- upfront fees
- $520
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- 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
- $50,000
- maximum borrowing amount
- $1,000,000
- 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 Special Offer Fixed Rate Home Loan
UHomeLoan
Owner Occupier, Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.75% p.a.
fixed 3 years2.22% p.a.$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
UHomeLoan
$0 fees and easy application. Choose between weekly, fortnightly or monthly repayments. 3 year fixed rates are for new Owner Occupier Principal & Interest loans.
- interest rate
- 1.75% p.a.
fixed 3 years
- comparison rate
- 2.22% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $0.00
- Extra repayments
- yes - free up to $20,000 p.a.
- 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. Receive 1.75% 3 year fixed rate when you apply by 29 April 2021 and settle within 90 days.
Read our Mozo Review to learn more about the UHomeLoan
Basic Home Loan
Fixed, Owner Occupier, Principal & Interest, LVR<70%
interest rate
comparison rate
Initial monthly repayment
2.09% p.a.
fixed 3 years2.43% 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.
Basic Home Loan
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.
- interest rate
- 2.09% p.a.
fixed 3 years
- comparison rate
- 2.43% p.a.
- upfront fees
- $0
- Ongoing fees
- $0.00
- Discharge Fee
- $400.00
- Extra repayments
- yes - free
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 70.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $750,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Monthly
- Special Offers
- -
Read our Mozo Review to learn more about the Basic Home Loan
Special Offer Reward Me Fixed Rate Home Loan
Owner Occupier, LVR <80%, 300k+
interest rate
comparison rate
Initial monthly repayment
1.94% p.a.
fixed 2 years2.77% p.a.Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
Special Offer Reward Me Fixed Rate Home Loan
Enjoy $3,000 cashback when you refinance with Virgin Money (T&Cs apply). Additional repayments up to $10,000 per annum. Reverts to the discounted variable rate on expiry of the fixed term.
- interest rate
- 1.94% p.a.
fixed 2 years
- comparison rate
- 2.77% p.a.
- upfront fees
- $450
- Ongoing fees
- $10.00 monthly
- Discharge Fee
- $350.00
- Extra repayments
- yes - up to $10,000 per annum
- Redraw facility
- no
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $300,000
- maximum borrowing amount
- -
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- $3,000 cashback for new borrowings of at least $300,000, applications by 28 May 2021, settled by 27 August 2021.
Read our Mozo Review to learn more about the Special Offer Reward Me Fixed Rate Home Loan
Star Classic Fixed Special Home Loan
Principal & Interest
interest rate
comparison rate
Initial monthly repayment
1.74% p.a.
fixed 2 years2.23% p.a.Enjoy a new and unbelievably low introductory rate home loan for one year. Unlimited free online redraws and additional repayments up to $20K to help you pay off your home sooner. Multiple loan splits possible and flexible replacements. (Rates revert after introductory period ends).
Star Classic Fixed Special Home Loan
Enjoy a new and unbelievably low introductory rate home loan for one year. Unlimited free online redraws and additional repayments up to $20K to help you pay off your home sooner. Multiple loan splits possible and flexible replacements. (Rates revert after introductory period ends).
- interest rate
- 1.74% p.a.
fixed 2 years
- comparison rate
- 2.23% p.a.
- upfront fees
- $515
- Ongoing fees
- $395.00 yearly
- Discharge Fee
- $535.00
- Extra repayments
- yes - free up to $20,000 p.a.
- Redraw facility
- yes - free
- Offset account
- no
- Maximum loan to value ratio
- 80.00%
- minimum borrowing amount
- $150,000
- maximum borrowing amount
- $1,000,000
- type of mortgage
- Fixed
- Repayment types
- Principal & Interest
- Availability
- Owner Occupier
- Repayment options
- Weekly, Fortnightly, Monthly
- Special Offers
- Special rate available for applications received by 30 May 2021 and settled by 31 August 2021.
Read our Mozo Review to learn more about the Star Classic Fixed Special Home Loan
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