Home buying language

Planning to buy Property hunting Choosing the right loan Buying your home Making your loan work for you
– simplified
Home buying
made easy.
Your step by step guide
Find the path
to your property
goals with us.
Everyone’s home buying needs are different,
whether you’re buying your first or next
home, investing in property, or refinancing.
No matter what your goal is, we’re here to
help at every step, with expert guidance,
handy tips and useful information.

B
 Home buying language
Planning to buy Property hunting Choosing the right loan Buying your home Making your loan work for you
– simplified

1
 To check out our range of home loan calculators and tools, visit
commbank.com.au/home-loan-calculators-and-tools

2 2
Why choose CommBank?

Planning to buy
With expert guidance, smart tools, exclusive property insights and a range of
home loans, we’ll support you throughout your home buying journey and beyond.
Value
Tailored rates and special discounts
Tailored interest rates, as well as special discounts on your home loan and

Property hunting
Credit Card with a Wealth Package.
Flexible loan features
Tailor your loan to suit your needs and be ready for whatever life brings,
with product features like multiple free offset accounts, redraw, flexible
repayments and repayment holidays.
CommBank Yello
As part of CommBank Yello, our customer recognition program, you could

Choosing the right loan

receive benefits including prize draws, cashbacks and other discounts.
Guidance
Dedicated Home Lending Specialists
Make confident decisions, with our Home Lending Specialists who partner with
you at every step of your home buying journey and for the life of your loan.
Smart tools
Once you’ve received conditional pre-approval for your home loan, our CommBank
Home Buying Hub can help you take care of all your home buying needs. Find

Buying your home

out more: commbank.com.au/home-loans/commbank-home-buying-hub
Property news and insights
Free and individually customised reports for your target property or suburb.

Convenience
Anywhere, anytime convenience
Manage your home loan and banking 24/7 with the CommBank app, NetBank
Making your loan work for you

or over the phone.

Meet with us when it suits you
Book a time online instantly with our Home Lending Specialists whenever and
wherever you like, either in our branches, on the phone or any other place that
suits you.
All your banking in one place
Simplify your finances by bringing your loan, insurances and other banking
together in the CommBank app and NetBank.
Home buying language

1. With a Wealth Package you’ll get access to interest rate discounts on top of standard package benefits. To apply
for a Wealth Package, you require an initial ‘package lending balance’ of at least $150,000. Package lending
– simplified

balance is the sum of the account balances of eligible home lending accounts and the credit limit of Viridian Line
of Credit accounts that you have with us at the time you apply for a Wealth Package. Eligible home loans are
limited to those accounts that can be included in the Wealth Package, as set out in the table on page 27.
2. Features available on eligible loan and borrower types.
3. Ongoing eligibility conditions apply. See commbank.com.au/commbankyello for more information and 3
the full terms and conditions.
Our Home Lending
Specialists – with
you every step of
the way.
Whatever property picture you’ve painted
in your mind, we can help make it a reality.
We’ll pair you up with a dedicated Home
Lending Specialist to guide you through
the process and beyond.

4
 Planning to buy
Our Home Lending Specialists will provide you with
personalised support and guidance by:

Discussing your individual You can meet your Home Lending

financial goals and providing Specialist wherever and whenever
timeframes to achieve them you like.

Property hunting
Helping you with budgeting and
planning so you have a clear idea In branch
about your current living expenses
and potential upfront costs
Place of your choice
Providing you with clear
information on how much of a
deposit you’ll need and tips on Over the phone
how to save for it

Choosing the right loan

Estimating how much you’ll be
able to borrow, using information To book an appointment
unique to your situation with a Home Lending
Specialist, visit
Helping you navigate through commbank.com.au/
the property hunting process appointment
and providing you with free
personalised property reports

Making sure you’re clear on the

Buying your home

application process and your
loan options, and answering any
questions you have

Being there for you beyond

settlement, by helping you
manage your loan and ensuring
your loan is working for you. Making your loan work for you

What happens at the first appointment?

Your Home Lending Specialist will talk to you about your home lending needs and
financial goals so they can provide help that’s tailored to you. They’ll also make
sure you’re clear on the application process and your loan options, and answer any
questions you have.
If you’re ready to start your loan application or apply for conditional pre-approval,
Home buying language

they’ll let you know exactly which documents you need to bring along, so you can
apply together in person.
– simplified

See page 50 for more information.

5
What’s your
property goal?

I want to:
Buy a home or an investment property (see pages 8–41)
To help you navigate through the home buying process, we’ll take you
through the five common stages of buying a home, including the steps
involved in getting a home loan with CommBank.

Build a house (see page 15)

If you’re looking to build a house, a construction loan can help ensure
you start – and stay – on the right footing.

Renovate or expand (see page 41)

If you’re dreaming of home renovations, then topping up or using your
existing equity may be an option.

Refinance my loan to CommBank (see page 41)

If you’d like to switch your existing home loan over to CommBank, we
can help by making the process clearer and easier for you.

Make my loan work harder for me (see pages 36–41)

Everyone’s different and we know things change, so we’ve outlined the
ways you can stay in control and manage your loan.

6
 Planning to buy
Stage 1: Planning to buy

Your home Budgeting, planning and

things to consider before
looking to buy.

buying journey Pages 8 to 15

Stage 2: Property

Property hunting
hunting
Tools and tips to help you
enhance your property
search.
Pages 16 to 19

No matter what stage you’re at in your

Choosing the right loan

home buying journey, or whether you’re Stage 3: Choosing the
buying a home to live in or an investment right home loan
property, we can help guide you through Our range of flexible loans,
each step. money saving features and
your insurance options.
Pages 20 to 31

Stage 4: Buying your

home or investment

Buying your home

property
Key steps in getting
a home loan – from
application to settlement.
Pages 32 to 35

Making your loan work for you

Stage 5: Making your

loan work for you
How to manage your loan
and flexible options to help
when things change.
Pages 36 to 43

Home buying language –

simplified
Home buying language

Home buying jargon put

– simplified

into everyday language.

Pages 44 to 49

7
8
 Planning to buy
Stage 1:
Planning to buy
It’s important to have a clear view of your finances,

Property hunting
before you start your property hunt.

Step 1: Calculate your current living expenses 10

Step 2: Work out how much you can borrow 10

Step 3: Work out your upfront buying costs 10

Choosing the right loan

Step 4: Decide how much you would be
comfortable repaying 10

Step 5: Save for a deposit 11

If you have a deposit less than 20% 11

Example of step 1 to 5: Meet Joanne 13

Information for first home buyers 14

Buying your home

First Home Owner Grant (FHOG) 14

First Home Super Saver Scheme 14

First Home Buyer stamp duty concession 14

Other things to consider 15 Making your loan work for you

Guarantor support 15

If you’re looking to build 15

Investing in property 15

If you’re self employed 15

Buying before selling 15

Other opportunities if you already own 15

Home buying language
– simplified

9
Planning to buy
Taking these few steps to budget and plan today will not only help you save time
and money, it’ll give you the confidence during the search and buying process.
Your Home Lending Specialist will help you navigate through these steps and assist with any
complexities when planning to buy.

1 3
Step 1: Calculate your Step 3: Work out your
current living expenses upfront buying costs
Setting your budget all starts In addition to your deposit, there
with your current and future living are some other costs you’ll need to
standards. Understanding what you factor in, such as stamp duty, bank
spend (i.e. your living expenses) will fees, inspections, agent fees and
give you a good start to work out legal fees.
how much you can afford. Be as It’s important you include these
thorough and realistic as you can with costs when budgeting to avoid any
your expenses and think about the surprises later.
things that may change if your loan
is approved. For example, you may Find out these costs using
have to pay more for public transport our stamp duty calculator at
and have extra expenses to consider, commbank.com.au/upfrontcosts
such as strata and council rates.

Calculate your monthly living

expenses at
commbank.com.au/livingexpenses

2 4
Step 2: Work out how much Step 4: Decide how much you
you can borrow would be comfortable repaying
The amount you’re able to borrow You can choose to pay weekly,
will depend on: fortnightly or monthly, depending on
• Your income what works best for you. Consider
how much money you want to have
• Your current living expenses after your repayments for your
• Your other liabilities and living expenses and your savings or
commitments, such as loans, child investments. As things change, you
support and credit cards may need to change your repayments
• The type of loan you want. so they work with your lifestyle.

Work out how much you may be Work out how much your
able to borrow at commbank.com. repayments may be using our
au/borrowing repayment calculator at
commbank.com.au/repayments

10
 Planning to buy
TIP: Completing the steps below will give you a
good idea of your price range, helping you start your
property search on the right foot.

Property hunting
5
Step 5: Save for a deposit Lenders Mortgage Insurance (LMI)
and Low Deposit Premium (LDP)
The larger your deposit, the
less you’ll need to borrow and LMI and LDP are products that protect
the easier your loan repayments us (not you) in the event you are unable to
will be to manage. repay your home loan.

Choosing the right loan

There are many ways to save, LMI and LDP are one-off, non-refundable,
including working out how to non-transferable costs that are capitalised
cut back on your spending, and (added) to the total home loan amount.
setting up a regular savings plan. Your Home Lending Specialist will be
able to give you more information about
For more great saving ideas, whether this applies to you.
visit commbank.com.au/saving
For more information, refer to
If you have a deposit less than 20% commbank.com.au/home-loans/
Typically we require a 20% deposit lenders-mortgage-insurance

Buying your home

towards the purchase price of the
property; however, there are other 12% 20%
options if you have a deposit that’s deposit deposit
less than 20%:
• Paying Lenders Mortgage $500,000 $500,000
Insurance (LMI) or a Low House price
Deposit Premium (LDP)
• Guarantor Support $60,000 $100,000
Making your loan work for you

(see page 15) – Deposit

• Or if you already own property,
using your existing equity (see $440,000 $400,000
= Loan
page 41). amount
Each of these options protect us
+ LMI4 + $6,500 N/A
from the risk associated with a low
deposit home loan; however, they Total Loan $446,500 $400,000
don’t protect you.
We can generally lend to you to
$60,000 $100,000
Home buying language

purchase a property – even if you Total savings/ + upfront + upfront

don’t have the full deposit – as long
– simplified

contribution costs costs

as one of these options is in place. required

4. Calculations are estimates provided as a guide only. Lenders Mortgage Insurance (LMI) and Low
Deposit Premium (LDP) are dependent on various factors, such as deposit amounts, the value of 11
your property and your risk assessment as a borrower.
12
Meet Joanne

Planning to buy
Her planning and budget

Annual Income: Buying a property in:

$90,000 South Australia

Property hunting
Has savings of: Looking to buy a property costing:
$145,000 $475,000

Before starting her property search, she sits down with her Home Lending
Specialist to work out her current and upfront expenses, and how much
she could borrow.
Her budget

Choosing the right loan

Current monthly living $2,000/month
expenses:

Upfront costs Borrowing capacity

up to:
Solicitor/conveyancer: $2,000
Stamp duty: $18,830 $426,700
Settlement fee: $200
Government fees: $3,906

Buying your home

Total upfront cost: $24,936

Her decision
After assessing her budget, and discussing her goals with her Home Lending
Specialist, she decides to apply for a home loan. Making your loan work for you

Loan amount: Repayments: Loan details:

$370,000 $2,386 6.69% p.a. Standard Variable Rate
per month Home Loan with a Wealth Package
(Comparison rate 7.06% p.a.)

Note: The above rate is an example only and is subject to change at any time. Your
Home Lending Specialist will work with you to work out the applicable interest rate
for your individual circumstances.
Home buying language

^ Please refer to the ‘Things you should know’ section at the end of this brochure.
– simplified

5. Some upfront costs, such as stamp duty and government fees, vary between each state. Your Home
Lending Specialist can you help you work out these costs.
6. Calculations are estimates provided as a guide only. They assume interest rates don’t change over the life
of the loan and are calculated on the rate that applies for the initial period of the loan. Interest rates may
change at any time. Fees and charges are payable and these are not taken into account in the calculations. 13
Information for first home buyers
If you’re a first home buyer, you may be eligible for grants and concessions,
depending on the state you live in and the type of property you’re buying.

First Home Owner Grant (FHOG)

If you’re buying your first home in Australia, you may be eligible
for a government FHOG.
Each state and territory has different grants and conditions;
however, we can help with your application.

Visit commbank.com.au/fhog

First Home Super Saver Scheme

The First Home Super Saver scheme allows you to save
money for your first home using your superannuation fund.
This scheme run by the Australian Taxation Office (ATO) helps
first home buyers save faster by allowing them to withdraw
voluntary contributions they’ve made to their super.

For more information, refer to the ATO website at ato.gov.au

First Home Buyer stamp duty concession

Depending on how much your property is worth, you may be
able to pay less on stamp duty. The conditions and amounts
change depending on the state you buy in.

For more information, refer to firsthome.gov.au

14
Other things to consider

Planning to buy
Guarantor Support If you’re self employed
Our Guarantor Support option could help Our Home Lending Specialists understand
you buy your own home sooner by using the needs and unique circumstances
a guarantor, such as a family member, to business owners may be facing. Plus, they
provide extra security for your loan. By can help you structure your loan in a way
mortgaging their own property as security, that may let you buy the home you want.

Property hunting
you may be able to purchase a property
with a smaller deposit and potentially To discuss your specific needs and
avoid paying Lenders Mortgage Insurance requirements, you can make an appointment
or a Low Deposit Premium. with a Home Lending Specialist at
commbank.com.au/appointment
There are a few things to consider, such
as the risks associated with becoming Buying before selling
a guarantor. For more information, visit
If you’d like to buy a new home before you
commbank.com.au/guarantorsupport

Choosing the right loan

sell your existing one, a bridging loan can
provide the money you need to secure
If you’re looking to build your new home. It’s suitable for existing
There’s a lot to consider before you decide CommBank customers who have bought a
to build your own home, including the new home and need to settle, but have not
costs of building and the various steps received the money from the sale of their
you’ll need to take to plan your build. existing home. In other words, a bridging
loan covers the gap between purchasing
A construction loan can be used your new home and receiving money from
to build your own home, complete the sale of your existing home.
renovations or knock down and rebuild.
During the bridging period, you’ll make

Buying your home

You can draw money from the loan
progressively as you need to pay for your repayments on both your bridging loan and
costs, so you’ll only pay interest on the your existing home loan. Once you sell your
amount you’ve used. We’ll also stay in existing home, you can use the money to
touch with you throughout the build, to pay out your original mortgage, and any
see how you’re progressing. additional money can go towards reducing
the mortgage on your new home.
You can find out more information at Making your loan work for you
commbank.com.au/constructionloans You can find out more information at
commbank.com.au/bridging

Investing in property
Other opportunities if you
Choosing to invest in property is a
big step. It’s important to plan right,
already own
weigh up the risks and benefits, and If you already have a property, you may
understand the costs. With the right have built up equity – the difference
knowledge and tools, we can help you between the market value of your property
plan your investment. and the amount you still owe on your home
loan. You could use this equity to upgrade
Home buying language

Find out more about investing in your home, buy a car or travel to the places
property at commbank.com.au/
– simplified

you’ve always wanted to.

propertyinvestor
Refer to page 41 of this brochure for more
7. The circumstances of your loan determine if information.
Lenders Mortgage Insurance or a Low Deposit
Premium may apply.
15
16
 Planning to buy
Stage 2:
Property hunting
Finding the right property can be an exciting time.

Property hunting
By having a clear idea of what you want and how
much you can afford, it can be a stress-free and
rewarding experience.

Step 1: Meet with your Home Lending Specialist 18

Step 2: Apply for conditional pre-approval so you can

Choosing the right loan

search with confidence 18

Step 3: Write down a short list of suburbs and research

the market 19

Step 4: Get customised suburb and property reports 19

Step 5: Look into different ways you can buy your

property 19

Buying your home

Buying at an auction 19

Buying through a private sale 19

Buying off the plan 19

Making your loan work for you

Home buying language
– simplified

17
 Property hunting
Here are some useful steps to help make the
property hunting process as smooth as possible.

1 3
Step 1: Meet with your Step 3: Write down a short
Home Lending Specialist list of suburbs and research
Your Home Lending Specialist will
the market
guide you during your property hunt. It’s important to have a clear idea
They’ll help you apply for conditional of what’s important to you when
pre-approval and equip you with the looking for the right property.
right tools and information to help Consider which criteria are high
enhance your property search. on the priority list, like being near
public transport, healthcare, retail
Simply make an appointment at facilities, childcare, schools and other
commbank.com.au/appointment amenities like shopping centres.

To start searching for the perfect

TIP: To help you prepare for your application,
property today, go to commbank.
refer to our handy appointment checklist at the
com.au/digital/home-buying/search
end of this brochure.

2 4
Step 2: Apply for conditional Step 4: Get customised suburb
pre-approval so you can and property reports
search with confidence Ask your Home Lending Specialist
Search with confidence knowing your loan for a personalised report on your
is conditionally pre-approved. Conditional preferred suburb or property. Using
pre-approval provides an estimate of the most up-to-date information
how much you can borrow based on the from CoreLogic (Australia’s leading
information you provide to us. Not only does property data, information and
conditional pre-approval show sellers that analytics provider), our property
you’re serious, but it can help you negotiate and suburb reports provide a
confidently when the right property comes comprehensive snapshot of a
along. It’s also a requirement to be able to property and its neighbourhood.
bid in some real estate auctions.
Features and benefits
• Find out what the property is
TIP: worth based on recent sales
A) Check whether the property you’re looking to
• Get in-depth knowledge
purchase is exposed to climate hazards such as
on properties for sale in the
floods, fires, cyclones or severe storms.
neighbourhood, including listing
B) Consider whether the property’s exposure to climate dates and agents
does or will impact the cost of obtaining building
insurance. For more information, you can visit • Get median sale prices,
climatecouncil.org.au/resources/climate-risk-map/ sales values, and rental and
demographic profiles.
C) C onsider how certain features can help to minimise
the financial impact of running the property whilst
preserving the value of your asset (i.e. homes with
a good thermal rating and solar panels can help
minimise your energy bills whilst keeping your family
comfortable all year round).
5
Step 5: Look into different

Planning to buy
ways you can buy your property
Buying at an auction
If you’re planning to buy at an auction
you’ll need to ensure you’re prepared.
Once your hand goes up and you win
the bid, you’ll need to pay the deposit
and sign the contract. Generally with
auctions, there’s no cooling-off periods.

Property hunting
Your Home Lending Specialist can Download the CommBank
help you with all the information app so you have access to our
and steps you need to take if you’re Home Buying Hub.
thinking of buying at an auction,
including what to expect on the day. All the tools and support you need
to help achieve your property goals
For information and tips, you can visit are right at your fingertips in the
commbank.com.au/auctionday CommBank app.

Choosing the right loan

Once you’ve received conditional
Buying through a private sale
pre-approval for your home loan, the
In a private sale you negotiate the sale CommBank Home Buying Hub can
price with the seller. This is usually help you take care of all your home
done in writing through the Contact of buying needs. In the hub you can:
Sale, or verbally. The real estate agent
• View your letter of conditional
can help you, and provide you with the
pre-approval or conditional
right information to help you make the
eligibility
offer. Depending on your contract, you
may have a cooling-off period, which • Access the contact details for
your dedicated CommBank

Buying your home

is usually 2–5 business days.
Home Lending Specialist
To find out more, you can visit • Search for properties on the go
commbank.com.au/privatetreaty and see upcoming inspection
times
Buying off the plan
• Make confident decisions
Buying off the plan means with personalised insights and
committing to buy a property that CommBank market estimates Making your loan work for you
hasn’t yet been built. For some, • Know the steps you’ll need to
buying off the plan can be more take throughout your home
affordable and flexible than buying buying journey
an existing property. There are a few
things you need to consider, so speak • Access guidance articles, tools
to your Home Lending Specialist, and calculators for each step
who can help you with any questions along the way.
you may have.

For more things to consider when  or more information,

F
buying off the plan, you can visit go to commbank.
Home buying language

commbank.com.au/offtheplan com.au/home-loans/
commbank-home-
– simplified

buying-hub

# Please refer to the ‘Things you should know’

section at the end of this brochure. 19
20
 Planning to buy
Stage 3:
Choosing the
right home loan

Property hunting
It’s important to choose a loan that works for you,
and we can help you make the right decision.

Our range of home loans 22

Choosing the right loan

Ways to pay your home loan 22

Flexible home loan features and add-ons 24

Wealth Package 24

Everyday Offset 25
Redraw 26

Compare our home loan features 27

Buying your home

Your protection options 28

Protection for your home inside and out 29

Protection for you 30

Making your loan work for you

Home buying language
– simplified

21
Our range of home loans
We offer a number of different home loan types.

Standard Variable Rate Extra Home Loan

Get the flexibility you want with Life of loan discount: A home
an extensive range of features loan with a variable interest rate
and benefits. and low fees.

Fixed Rate
Always know what your
repayments will be with a
locked-in rate for 1-5 years.

To compare our home loan types, you can refer to page 27 of this brochure.

Ways to pay your home loan

There are two repayment options for your home loan, and you can also
choose the frequency of your payments.

Principal and Interest (P&I) Interest Only (IO)

Pay your loan balance and the interest Pay just the interest on your loan for
Your loan repayments will be lower over a limited time
the life of the loan, since each time you Not only is the interest rate typically
pay the minimum repayments you’re higher on an Interest Only loan,
paying part of the original but once your Interest Only period
loan amount while also ends, your repayments will change
covering interest. to Principal and Interest, which will
increase your repayments. There’s
a maximum period you can pay
Interest Only, so it’s designed for
short-term needs.

Weekly Fortnightly Monthly

For P&I loans only For P&I loans only All loan types

22
Example

Planning to buy
Jason has taken out a $500,000 Standard Variable Rate Home Loan with a Wealth
Package for 30 years.

Option 1 Option 2

Property hunting
Principal and Interest 5 year Interest Only

6.69% p.a. 7.18% p.a.

Interest rate at start
(Comparison rate (Comparison rate
of loan
7.06% p.a.) 7.25% p.a.)

Monthly repayment first

$3,224 $2,992

Choosing the right loan

5 years

6.69% p.a.
Interest rate after
Unchanged (Comparison rate
Interest Only period
7.06% p.a.)

Monthly repayment
$3,224 $3,436
after Interest Only period

Buying your home

Total repayments over
$1,160,307 $1,210,192
30 years

Extra money paid due

$0 $49,885
to Interest Only period
Making your loan work for you

If Jason chooses Interest Only for the first 5 years, although he starts off his loan
with lower repayments, over the life of his loan, Jason will pay an additional $49,885
in interest.
Note: The example provided above is for illustrative purposes only. They assume
interest rates don’t change over the life of the loan and are calculated on the rate that
applies for the initial period of the loan based on an 80% loan to value ratio. Fees and
charges are payable. The calculations do not take into account fees, charges or other
amounts that may be charged to your loan (such as establishment or monthly service
Home buying language

fees or stamp duty).

– simplified

^ Please refer to the ‘Things you should know’ section at the end of this brochure. 23
Flexible home loan features
and add-ons

Wealth Package
Simplify your banking and save money at the same time with our Wealth
Package. For an annual fee, you’ll enjoy:
• Special interest rate discounts on a range of eligible home loans, meaning
you’ll pay less interest, which will help you pay off your loan quicker
• Save on fees with no upfront home loan establishment fees, monthly home
loan service fees and annual credit card fees for one eligible card.

To find out more, visit commbank.com.au/wealthpackage and talk to your

Home Lending Specialist.

Note: The annual package fee can change at our discretion. For the updated fee,
go to commbank.com.au/homeloanfees

Example

How much could you save?

For example, let’s imagine you have a Standard Variable Rate loan of $500,000 for 30 years
with a Wealth Package and an Ultimate Awards credit card. Let’s see how much money you
could save.

Benefits First year savings Second year

Interest savings with a 2.26% p.a. interest rate

discount aligned with an LVR of 80%, on a $11,283 $11,239
$500,000 Standard Variable Rate home loan

Home Loan Establishment fee waived $608 N/A

Home Loan monthly Loan Service Fee waived $96 $96

Fees waived on Ultimate Awards Credit Card $420 $420

Minus the annual package fee -$395 -$395

Total Home Loan Wealth Package saving $12,004 $11,360

8. The Establishment Fee will no longer be applicable after the first year. Your total Wealth Package saving will
decrease over the life of your loan as your home loan balance decreases.
24 ^ Your total Home Loan Package savings will decrease in subsequent years as your home loan balance decreases.
 Planning to buy
Everyday Offset

Property hunting
An Everyday Offset is a transaction account linked to your Standard Variable
Rate home loan. Linking an Everyday Offset to your Standard Variable Rate
home loan is a great way to pay less interest while also having the flexibility to
access your funds easily.

Any money you put into your Everyday Offset (e.g. your salary and savings) –
whether its $2 or $20,000 – reduces the balance on which we charge interest.
This means you’ll only pay interest on the difference.

Choosing the right loan

You can also have multiple Everyday Offset accounts linked to your home loan, so as
well as saving even more interest over time, you can manage your money your way.

To find out more and to see how Everyday Offset works, visit commbank.com.
au/everydayoffset or talk to your Home Lending Specialist.

Example

If you have a loan balance of $400,000, and you have $20,000 in your linked Everyday

Buying your home

Offset, you’ll only pay interest on $380,000.

Your home loan Your offset savings Interest charged on Making your loan work for you

$400,000 $20,000 $380,000

Home buying language
– simplified

9. An Everyday Offset is an account linked to an eligible home loan, and accountholder/s must also be
accountholders of the linked home loan. It is only available for Personal borrowers, not Companies
or Trusts. Interest is not charged on that part of the home loan balance equal to the balance of the
Everyday Offset. No credit interest is paid on the account, even when the balance is greater than
your home loan balance. The target market for this product will be found within the product’s Target
Market Determination, available at commbank.com.au/tmd 25
Flexible home loan features
and add-ons (continued)
Redraw
Redraw allows you to access additional payments that you’ve made on your home loan. For
weekly and fortnightly direct debit payers, only funds over and above the minimum required
repayments will be available. The money in your redraw account may reduce over the life
of your loan so that, by the end of your agreed loan term, both your loan balance and the
available redraw will be zero.
Redraw is available on most variable rate home loans, and there are no fees to redraw. If you
do take money from your redraw, your repayments may increase. This is so you repay the
loan within the agreed loan period.
Redraw is designed for occasional use. Other options, such as using offset accounts, may be
more suitable if you plan on using the money more regularly or have a set amount in mind.

For more information about redraw, please refer to commbank.com.au/redraw

TIP: Check your available

redraw anytime on the
CommBank app or NetBank.

26
Compare our home loan features

Planning to buy
We’ve included a summary of each loan type and the features they have. To compare
our loans online, visit commbank.com.au/home-loans. Your Home Lending Specialist
will be able to advise you of the fees and charges applicable to the loan you choose
but you can also visit commbank.com.au/homeloanfees

Property hunting
Loan type Standard Fixed Rate Extra
Variable Rate Home Loan
(Life of loan)

Savings

No Establishment Fee   
No Loan Service Fee   

Choosing the right loan

Discounted interest rate   
Save interest with Everyday Offset 
Eligible for Wealth Package  
Credit card fee waiver  
Eligible for Green Home Offer 
To pay my loan faster

Buying your home

Up to $10,000
Make additional repayments Unlimited per fixed term Unlimited
year

Flexibility

Redraw additional payments

or take a repayment holiday   Making your loan work for you

Split your loan

  
(part fixed, part variable)

~ From 19 November 2022, any new Standard Variable Rate home loans or top ups on existing Standard
Variable Rate home loan with a Wealth Package are eligible for discounted interest rates based on Loan to
Value ratio (LVR). For more information visit Standard Variable Rate home loan page.
+ Green Home Offer provides a discount on your Standard Variable Rate home loan for eligible customers who
buy, build or renovate their homes to be more sustainable and energy efficient. Eligibility criteria applies -
speak to your Home Lending Specialist for more information.
10. With a Wealth Package you’ll get access to interest rate discounts on top of standard package benefits. To apply
for a Wealth Package, you require an initial ‘package lending balance’ of at least $150,000. Package lending
balance is the sum of the account balances of eligible home lending accounts and the credit limit of Viridian
Home buying language

Line of Credit accounts that you have with us at the time you apply for a Wealth Package. Eligible home loans
are limited to those accounts that can be included in the Wealth Package, as set out in the table above.
– simplified

11. Extra Home Loan provides a discounted interest rate for the life of the loan.
12. Only available for Personal borrowers, not Companies or Trusts.
13. An Early Repayment Adjustment and an Administrative fee may apply if you pay more than the maximum.
14. An Early Repayment Adjustment and an Administrative fee may apply if you split your loan during a fixed
term period. 27
Your protection
options.
Your home may be one of the biggest purchases
you’ll make and our range of insurance options
can help protect what matters.
Home Insurance can help protect your home
against loss or damage caused by incidents that
may happen in the future. Life Insurance and
Income Protection can help protect you against
the unexpected, and provide greater peace of
mind that you and your loved ones have financial
security when you need it most.
We can help you with a number of different
protection options for you and your home,
depending on your needs and the level of
cover you require. You can also speak
to your Home Lending Specialist
for more information.

28
Protection for your home inside and out

Planning to buy
Building and contents insurance
Home Insurance can help you insure your building and contents against loss or
damage caused by unexpected events, by helping you repair, rebuild or replace. If
you’re looking to purchase a home, it’s important you look into insurance options prior
to settlement so that you are adequately insured.

Property hunting
Making sure you have the right level of insurance for your home or investment
property is important. Under the terms of your mortgage you must at all times
maintain adequate Building Insurance over all security property. If the security
property is part of a shared scheme, you must use your best endeavours to ensure the
governing body maintains the building and other insurances required by law.

Cover for home owners Cover for investors

and renters and landlords

Choosing the right loan

The Residential Home Package gives The Investment Home Package
you the option to take out Building gives you the option to take out
Cover, Contents Cover, Portable Building Cover, Contents Cover
Contents Cover or a combination to or both.
suit your needs. • Building Cover: Insure your
• Building Cover: Insure your building building against loss or damage
against loss or damage caused by caused by events such as fire,
events such as fire, storm, flood and storm, flood and more.
more.15 Additional benefits include Additional benefits include

Buying your home

emergency work, temporary repairs, emergency work, temporary
alternative accommodation costs repairs and mortgage discharge.
and mortgage discharge. • Contents Cover: Covers the
• Contents Cover: Covers the cost of repairing or replacing
contents that make your house your contents (e.g. furniture,
a home (e.g. furniture, curtains, appliances, curtains and carpet)
carpets, appliances, jewellery and on a new-for-old basis when
more) by repairing or replacing them they are damaged by an Making your loan work for you

on a new-for-old basis when they insured event.

are damaged by an insured event.
• Portable Contents Cover: Insure
everyday portable items you take with
you when you’re out and about in
Australia or overseas (e.g. sunglasses,
engagement rings and surfboards).

For more information or to get a quote, visit commbank.com.au/

homeinsurance
Home buying language
– simplified

15. Cover for damage caused by storm, bushfire or flood is excluded for the first 48 hours of the policy
(exceptions apply). Policy limits and other exclusions apply. Please refer to the Home Insurance
Product Disclosure Statement (PDS) for more information (including coverage and exclusions)
on Building and Contents. Cover under the Residential and Investment Home Packages. 29
Protection for you

Life Insurance & Income Protection provided by AIA Australia

Life Insurance and Income Protection give you that extra safety net and help provide
you with support when you and your family need it most.

Life Insurance Income Protection

A once-off benefit up to a maximum Cover up to 70% of your monthly
of $1,000,000 to help with a variety income.
of expenses. • Designed to help you get back
• Covers your family and loved ones on your feet if you are unable
financially in the event you pass to work due to an Accident
away or become terminally ill. or Sickness.
• Can help with your expenses, • Cover up to 70% of your
such as home loan debt, car Pre-Disability Income up to
repayments, credit card debt, $10,000 per month.
children’s education and • Choose between 6-month,
everyday bills. 1-year or 2-year benefit periods.
• Cover that suits your needs:
– Choose a cover amount from
$100,000 to $1,000,000 For more information, visit
– Option to add Total and commbank.com.au/
Permanent Disability (TPD) cover incomeprotection
to your life cover if eligible
– Option to add Trauma cover to
your life cover if eligible.

For more information, visit

commbank.com.au/lifeinsurance

16. The benefit paid is lesser of your Sum Insured and 70% of your monthly Pre-Disability Income.
30 17. Accident and Sickness both have specific meanings set out in the PDS.
 Planning to buy
Take a step to a healthier you with AIA Vitality
When you purchase Life Insurance or Income Protection provided by AIA Australia,
you may get access to AIA Vitality. It’s a personalised, scientifically backed health
and wellbeing program that supports you every day to make healthier lifestyle choices.

Property hunting
Access rewards and discounts on gym memberships, flights, spa treatments, life
insurance premiums and more to keep you motivated on your journey.

For more information, visit commbank.com.au/vitality

Apply online today: Get a quote and apply online in a few simple steps. Get a decision
straight away – no medical assessment or blood tests required.

Choosing the right loan

Need more cover or have additional needs?
As part of our partnership with AIA, we can refer you to AIA Financial
Wellbeing to review your situation and provide financial advice on wealth,
super and personal insurance solutions, across a range of product
providers – whether you just need basic guidance for life’s most common
questions, or a highly structured financial plan.

Buying your home

For more information, see page 42 or visit
commbank.com.au/financial-advice

Making your loan work for you

Home buying language
– simplified

18. Access is subject to a minimum annual premium on your Life Insurance and Income Protection policies.
For more information, visit commbank.com.au/vitality
Important: Please refer to the ‘Things you should know’ section at the end of this brochure. 31
32
 Planning to buy
Stage 4:
Buying your
home

Property hunting
(or investment property)

If you haven’t bought a property before (or even if

you want a refresher), here’s a step by step guide

Choosing the right loan

to help you through it.

Step 1: Apply for conditional pre-approval

to search with confidence 34

Step 2: Found your property?

The next step is to apply for a home loan 34

Step 3: Secure your property and

Buying your home

pay the deposit 34

Step 4: Your home loan’s been approved,

it’s time to sign your loan documents 35

Step 5: Settle and move in 35

Making your loan work for you
Home buying language
– simplified

33
Your guide to the home loan process
The home loan process may seem complex, even if you’ve bought before. Here
are the most common steps from application to settlement. Your Home Lending
Specialist will help you at each step and go through any detail unique to your
situation (e.g. buying at an auction).

1 2 3

Conditional pre-approval Estimated time from application to settlement: 4–6 weeks

is valid for: 90 days
Estimated time for home loan approval (once documents supplied to your lender):

Apply for conditional Found your property? Secure your property

pre-approval to search The next step is to apply and pay the deposit.
with confidence. for a home loan. The Contract of Sale (or
Applying for conditional You can apply anytime Offer and Acceptance in WA)
pre-approval is important online, over the phone or can be used to negotiate
– it’ll help give you a good in person with help from an offer on the property.
understanding of what you one of our Home Lending Once accepted, both buyer
can afford and provide the Specialists. They’ll also let and seller sign this contract,
confidence to make an offer you know exactly which which confirms selling price,
when the right property documents you’ll need for settlement terms and any
comes along. your application. other conditions for the sale.

T
 o help you with the home If you’re buying at an A
 rrange a property and
loan process and to apply auction, speak to your pest inspection. This is not
for conditional pre-approval, Home Lending Specialist compulsory but a good idea
make an appointment with about what’s required to avoid bad surprises
a Home Lending Specialist or you can refer to page 19 C
 heck with local and state
at commbank.com.au/ L
 et your Home Lending governments about zoning
appointment Specialist know you’ve and future developments
A
 sk your Home found your property that may affect your home
Lending Specialist for a
 ather all the necessary
G C
 heck if there’s a cooling-
personalised property
documents (e.g. income off period for the contract
report for your preferred
statements). See page 50 for S
suburb or property. They’ll  ign the Contract of Sale
a list of documents required (or Offer and Acceptance
also estimate your upfront
buying costs (e.g. stamp F
 ind a solicitor or in WA) provided to you by
duty, legal fees) conveyancer who can help the seller or real estate
you with the contract and agent and pay the deposit
O
 nce you’ve received any other legal documents. – usually 5–10% of the
conditional pre-approval, They usually charge for property price
it’s time to go search for their services so make sure
your property you are aware of their fees
before any commitment

34 Each home buying journey is different. Your Home Lending Specialist is there to guide you
through the above steps and help with anything specific to your situation.
 Planning to buy
Congratulations,
you’ve bought
4 5

Property hunting
your home!

1–5 business days

Your home loan’s been approved, Settle and move in.

Choosing the right loan

it’s time to sign your loan Settlement is when the purchase
documents. of the property is completed and
Once your home loan application and it officially becomes yours. We’ll
documents are submitted, we‘ll review arrange a settlement date, time
them and complete any necessary and location with your solicitor or
checks (which may include property conveyancer. To keep you updated,
valuation, credit checks and building we’ll notify you by SMS when
documents). We’ll then let you know if settlement is successfully
your loan is approved and provide your completed.
loan offer documents.

Buying your home

C
 omplete stamp duty forms (if A
 rrange a pre-settlement
applicable) – your solicitor or inspection with the seller or
conveyancer will organise this their real estate agent !

O
 nce you receive your home loan
documents, you can review them E
 nsure you’ve got enough money
either in person or discuss it over in your nominated CommBank Making your loan work for you
the phone with your Home Lending transaction account 48 hours
Specialist. You’ll need to sign before the settlement date – your
the loan documents or accept in solicitor or conveyancer will advise
NetBank with our SmartSign service how much
if you’re eligible
L A
 fter settlement, pick up your keys
 ook into Home Insurance options,
prior to settlement. Speak to from the seller’s real estate agent
your Home Lending Specialist
for more information or visit
commbank.com.au/insurance
Home buying language
– simplified

For more information, visit commbank.com.au/your-home-buying-resources

35
 Planning to buy
Stage 5:
Making your
loan work

Property hunting
for you
With the CommBank app and flexible features, it’s

Choosing the right loan

never been easier to manage your home loan, even
when your circumstances change.

Getting started 38

Manage your loan 24/7 39

Your personalised property experience 40

Buying your home

When you need more money 41

Using your existing equity 41

Increase your home loan (top up) 41

Refinancing your home loan 41

Making your loan work for you

Considering financial advice 42

Home buying language
– simplified

37
Getting started.
Register for NetBank, a secure online
place to manage your finances.

Visit commbank.com.au/netbank

Join over 5 million Australians using

the CommBank app. Bank with
confidence anywhere, anytime.

Visit commbank.com.au/commbankapp
Manage your loan 24/7

Planning to buy
The CommBank app and NetBank are the easiest ways to manage your
home loan, so you can stay in control. Simply log on, view your accounts
and select your home loan to get started.

See your home loan alongside your Increase your home loan
other accounts (top up)*

Property hunting
Just like your other accounts, you If you’re planning
can view your home loan account renovations, want
information anytime. You can also to consolidate your debts or
view your loan balance, current simply need extra cash, you
loan details and transactions, as can apply in NetBank or the
well as your repayment amount CommBank app – subject to
and frequency. equity in your property
and our approval.

Choosing the right loan

Change your repayments
We understand changes happen Redraw your additional
in life, which means you may need repayments
to change how you repay your If you’ve made additional
loan (i.e. your repayments). You payments on your loan, you
can easily: may be able to access these
• Change your repayment from your redraw facility.
amount and frequency For weekly and fortnightly
direct debit payers, the
• Change your repayment type
available redraw balance will
– Interest Only to Principal

Buying your home

not include payments made
and Interest.
towards your next monthly
Change to a fixed rate or minimum repayment. For
re-fix your home loan more information, refer to
page 26.
Changing your home loan from
variable to a fixed rate or starting Access your statements
a new fixed term (re-fix) is easy
You can view up to 7 years
using our switching tool.
Making your loan work for you
of statements, providing you
Split your home loan access anytime you need. If
you’re still receiving paper
If you want to take advantage of statements, you can also
different loan types, you could switch to online statements
consider splitting your home loan. using the CommBank app
This is when you divide your loan or NetBank.
into two or more parts. You can do
this easily on NetBank or speak to For more information, visit
your Home Lending Specialist. commbank.com.au/
paperless
Home buying language

For more information, visit

commbank.com.au/home-loans/
– simplified

split-loan

* Please refer to the ‘Things you should know’ section at the end of this brochure. 39
Your personalised property
experience
We have a dedicated section within NetBank and the CommBank app that
redefines how you view, track and manage your home loan – providing you with
detailed loan and property information to help you achieve your goals.

Simply log on and select your home loan Property search capability (partnership
to get access to a broad range of features with Domain group) and affordability
including: calculators

Equity position/calculation Access property search details overlaid

with information such as upfront costs,
Helping you calculate your equity position repayments, Lenders Mortgage Insurance
using your data, such as home loan calculators and property values, so you can
balance and offset savings, together with find a property you can afford.
our knowledge of property prices.
Easily contact your Home Lending
Personalised property experience Specialist
An experience that gives you a personalised Providing easier access to contact your
view of your property situation to see dedicated Home Lending Specialist, who’ll
how it’s performing in relation to similar be there to help you with anything you
properties in your suburb. need regarding your home lending needs.
Access to checklists, tools and articles Personalised property reports
for every step of the property journey
Extensive suburb and property insights
Providing you with the guidance you need to give you all the information you need
to help explore options and reach your to make informed decisions or track and
current or next property goal. monitor performance over time.

For more information, visit commbank.com.au/myproperty

When you need Refinancing

Planning to buy
more money your home loan
If you’re looking to get some If you’re looking to bring your home
extra money for renovations, loan over to CommBank from
to consolidate your debt or for another bank, or already have a
personal reasons such as buying home loan with us, we can help you

Property hunting
a car, your current home loan may through the steps to refinance.
be able to help you achieve this. There are many reasons you may choose
Using your existing equity to refinance, including wanting to save
money, consolidating debts, or simply
Equity is the difference between the wanting more features and flexibility
market value of your property and the with your home loan.
amount you still owe on your home
Before you make any decisions, it’s a
loan. As you start to pay off your home
good idea to weigh up your options

Choosing the right loan

loan over time and your loan balance
and work out if refinancing is right
decreases, and/or if your property value
for you. You’ll also need to take into
increases, you’ll have more equity in
account any upfront or ongoing costs
your property.
associated with exiting your current
loan and switching to a new home loan.
Market value $500,000 These may include settlement fees, loan
establishment fees, loan service fees,
and exit fees and charges.
Owing on home loan Equity
$350,000 $150,000
Refinance with FASTRefi®

Buying your home

You can use your existing equity – With FASTRefi® we’ll save you time by
increasing your loan balance up to 80% managing the refinance steps on your
of the loan to value ratio (LVR), without behalf. You can refinance your eligible
paying Lenders Mortgage Insurance existing home loan to us from another
(LMI) or a Low Deposit Premium (LDP) financial institution within days of us
– for various things such as renovating, receiving your signed loan documents.
buying a car or even as a deposit for FASTRefi® is only available for Making your loan work for you
your next home. eligible loans from selected financial
To find out how much equity you have institutions.
in your home, you’ll need a property If your home loan isn’t eligible, or
valuation, so speak to your Home FASTRefi® isn’t for you, you can
Lending Specialist, who can discuss the choose our standard refinance
best way forward. option. FASTRefi® involves borrowing
additional buffer amounts to cover
Increase your home loan (top up)
the pay-out estimation. Once the
Increasing your home loan can be an loan is repaid and closed, any surplus
effective way to get extra money. If your funds will be refunded by the other
Home buying language

loan type lets you do top ups, the amount financial institution.
by which you can increase it will depend
– simplified

on how much equity is in the property as For more information about refinancing,
well as your current financial situation. visit commbank.com.au/refinancing

* Please refer to the ‘Things you should know’

section at the end of this brochure. 41
Considering
financial advice.
Once you’ve reached the important milestone of purchasing your property,
it may be a good time to consider how to protect what matters and how
to continue to grow your wealth.
At CommBank, we believe in the benefits of financial advice so we’ve
expanded our partnership with AIA so customers with financial
advice needs can be referred to AIA Financial Wellbeing.
AIA Financial Wellbeing can help provide the advice you
need to make today’s financial decisions, big or small,
so you can feel confident you’re on the right track.
For customers who have just purchased a
property, this may include:
• Drawing up a budget that plans for
both savings and debt reduction
• Protecting your partner, family,
mortgage or income
• Growing your wealth, possibly
with an investment portfolio
• Sorting out your
superannuation.
Financial advice – what to expect

Planning to buy
The purpose of steps 1 and 2 below is to explore if financial advice can help you and
your situation, so you are not charged for these first two steps.

Property hunting
Step 1 Step 2 Step 3 Step 4
Initial call with Your Building Your
AIA Financial complimentary your tailored Statement of
Wellbeing meeting financial plan Advice (SoA)

10 mins 60–90 mins 60 mins

• A team member • Next, an AIA • With your • Your Financial

Choosing the right loan

from AIA Financial Financial Financial Planner will talk
Wellbeing will Wellbeing Planner’s advice you through their
discuss your Financial Planner and further recommendations
current position will meet with you research, your in the SoA. If
and goals. If to discuss your personalised you’re happy to
advice suits your needs and path plan will be go ahead, your
needs, they can forward. prepared, called financial plan is
book you in for • If you go ahead, a Statement of put into place.
an appointment you’ll pay an Advice (SoA).
to be held face agreed advice

Buying your home

to face, via video fee, which varies
chat or over based on your
the phone. needs.

No hidden fees You’re all set!

The advice fees are scaled and Once your advice is in place, you can
depend on the complexity of the seek further help as you need it to
Making your loan work for you

financial advice you need. keep up with changes in your life.

Commonwealth Bank does not receive any commissions from AIA Financial Wellbeing
for referring you.

Take the next step with AIA Financial Wellbeing

Your CommBank Home Lending Specialist can put you in touch with AIA Financial
Wellbeing to discuss how financial advice can help you.
Home buying language

Alternatively, you can talk to us in branch, visit commbank.com.au/financial-

– simplified

advice or call AIA Financial Wellbeing on 1800 430 999 to get started.

43
44
 Planning to buy
Home
buying
language –

Property hunting
simplified
We’ve broken down common home buying jargon

Choosing the right loan

and put it into everyday language for you on the
following pages.

Buying your home

Making your loan work for you
Home buying language
– simplified

45
Bridging home loan Conveyancing
A short-term home loan to pay for the The process of transferring a property
purchase of your new property, before you from one owner to the next. You’ll need a
sell your existing property. lawyer, solicitor or licensed conveyancer to
do this for you.
For more information, see page 15
of this brochure or visit Cooling-off period
commbank.com.au/bridging
The cooling-off period is the very last
stage that you, as a property buyer, can
Co-borrower withdraw from a sale without major legal
or financial consequences. The cooling-off
A co-borrower is the other person you period varies depending on the state you
take your home loan out with (i.e. your live in and how you buy your property.
joint accountholder). This person’s name
appears on loan documents and their
income and financial history will also be Fixed interest rate
used to apply for the loan. An interest rate that stays the same for a
set period of time (e.g. 2 years). If you have
Comparison rate a home loan with a fixed interest rate, you’ll
know exactly how much your repayments
This is the rate that helps you see the true will be for this term.
cost of taking the home loan, making it
easier to compare rates across different
lenders. It’s calculated using a standard Guarantor
formula to include the interest rate, as well A person, company or trust that helps
as certain fees and charges related to the you secure a loan by offering their own
home loan. property (or properties) as additional
security for your loan. If a company or trust
Conditional pre-approval is the borrower and is unable to service
the loan, a guarantor can also help by
An indication from us that shows how contributing additional income. Guarantors
much we are likely to let you borrow based cannot contribute additional income where
on a review of your financial situation and the borrower is an individual.
needs, subject to certain terms
and conditions.
Home loan increase or home
Construction loan loan top up
Through a top up, you can borrow amounts
A loan specifically for building or
over $10,000 that are in addition to the
renovating where you can draw down the
original loan amount – subject to equity
loan progressively and only pay interest on
held in your property and our approval.
the amount you’ve used.

For more information, visit

commbank.com.au/constructionloans

46
Interest Only payments Mortgage

Planning to buy
The minimum payments only cover A mortgage gives the bank certain
interest charges on the loan. Interest rights over any property you use as
Only payments are for an agreed period security for the home loan.
of time. A mortgage is commonly used to secure
a loan from a lender.
For more information, visit
commbank.com.au/interestonly Offset

Property hunting
A transaction account that you can link to
Investment loan an eligible home loan. The money in the
offset doesn’t earn interest but instead
A loan provided for the purposes of offsets your loan balance and reduces
purchasing, renovating or building an the interest you pay on your loan.
investment residential property or for
acceptable personal investment. For more information, visit
commbank.com.au/everydayoffset
Lenders Mortgage Insurance

Choosing the right loan

(LMI) and Low Deposit
Off the plan
Premium (LDP)
When you commit to buy a property
LMI is an insurance premium we collect based on plans, before the property has
from you and pass on to our insurance been built. We may offer conditional
provider Helia. LDP is a bank fee you pre-approval on a loan for off-the-
pay directly to us. plan purchases before construction
The circumstances of your loan will commences. However, we won’t lend
determine whether a loan incurs LMI or you any money until we have performed
LDP. You will only be required to pay for a valuation of the finished property and

Buying your home

one, not both. re-evaluated your financial situation.
All premiums are capitalised (added) to
the total home loan amount when your Owner occupied
home loan is settled. This means you’ll
When you live in the property you have
pay more interest over the life of the loan.
the home loan for.

For more information, visit

Principal and Interest
Making your loan work for you
commbank.com.au/home-loans/
lenders-mortgage-insurance repayments (P&I)
The loan principal is the amount of
Loan to value ratio (LVR) money you borrow and the interest is the
cost charged to borrow this money. The
The total you’ve borrowed for your loan interest rate on your loan, the amount
as a percentage of your property value. you borrow, the length of the loan term
For example: If your property is valued and the required repayment amount
at $400,000 and you’ve borrowed on your loan will determine how much
$320,000, your LVR is 80% ($320,000 interest you pay over the life of the loan.
Home buying language

divided by $400,000).
– simplified

$320,000 ÷ $400,000
LVR = 80%
47
Rate Lock Repayment holiday
Fixed Rates are subject to change up until Lets you take a break from your home loan
settlement. ‘Rate Lock’ is an optional direct debit request (DDR) repayments
feature that allows you to lock in your for a set period of between three to
reference interest rates on new Fixed Rate 12 months if you’ve made additional
Home Loan and Fixed Rate Investment repayments on your loan. Eligibility
Home Loan applications for 90 days for conditions apply.
a non-refundable fee, charged per fixed
rate loan account. This excludes Home
Seeker applications, CommBank Green Settlement or settlement date
Loan applications, switching, splitting, When the sale or purchase of a property is
top-ups, loan purpose transfers or completed and ownership of the property
repayment changes. is transferred.

How does Rate Lock work?

Split loan
Rate Lock can be requested any time
before loan documents are issued and the When you divide one loan into two or more
reference interest rates applicable to your loan accounts, generally with different loan
Rate Lock will be on the date we receive types, repayment types or interest rates.
the completed Rate Lock consent from all
applicants. Stamp duty
The Rate Lock fee will be debited from Stamp duty is a government charge, or
your Related Account when the Rate tax. The amount you pay depends on the
Lock request is processed. The 90 days value of the property, the state or territory
commences when the Rate Lock request in which it’s located, and whether you’ve
is processed. If your Rate Lock expires purchased a property before in Australia.
on a non-business day, the expiry will be
extended out to the next business day. You Valuation
can ask us to break the Rate Lock before
settlement (for example, if rates go down) A valuation is an opinion about the market
and revert to the reference interest rates value of a property asset at a specific
available on the settlement date. date, by a person authorised to undertake
valuations for security purposes.
For more information, visit commbank.
com.au/support.home-loan.explain- Variable interest rate
rate-lock.html
An interest rate that can go up and down
over time. If you have a home loan with a
Refinancing variable interest rate, your repayments can
change when the interest rate changes.
Moving your home loan from one lender
to another (e.g. from another bank to
CommBank).

48
 Home buying language
Planning to buy Property hunting Choosing the right loan Buying your home Making your loan work for you
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49
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What you’ll need when
applying for a home loan
When you’re ready to apply for a CommBank home loan, you can help speed up
your application by getting your documents ready for each person applying.

This will include things like:

Proof of identity

 ocuments to confirm your income (e.g. payslips, personal and/or business

D
tax returns, ATO Notice of Assessment)

 ocuments to confirm your liabilities (e.g. credit card and current loan
D
statements)

 ocuments to confirm your assets (e.g. existing properties, shares,

D
investments)

Keep in mind, you won’t need to provide any documents relating to accounts or products
you hold with CommBank.

For more information about documents needed for a loan application, visit
commbank.com.au/homeloanchecklist

50
We’ll also need to understand what you spend

Planning to buy
This will help us work out how much you can afford. Be as thorough and realistic as
you can and think about the things that may change if your loan is approved.
If this is your first home and you’re not sure how much these expenses might be (e.g.
strata/body corporate fees, water, gas and electricity) we suggest speaking to friends
or family, or researching online for an estimate for your area.

Property hunting
Monthly living expenses Investment property expenses
The amount of money needed to If you are earning rental income from
maintain a reasonable standard of one or more existing investment
living, including existing expenses that properties (or are buying an
will continue to be incurred and any investment property), you’ll need to

Choosing the right loan

new expenses that will be incurred consider all expenditure related to it.
after the loan is funded.
Before your appointment, you can
Before your appointment, you can prepare and calculate your rental
prepare and calculate your monthly expenses (current and/or future)
living expenses online at online at
commbank.com.au/livingexpenses commbank.com.au/rentalexpenses

Buying your home

We’ll also ask you for other important information such as:
 rivacy consent form: Your Home Lending Specialist will send you the form to be
P
completed by all applicants prior to your appointment

I f you’ve found a property (or land): A Contract of Sale (Offer and Acceptance in
WA) and your solicitor or conveyancer’s name, address and contact details
Making your loan work for you
I f you’re building a property: The formal building tender, plans and specifications

I f you’re using an existing property you own as security, we’ll need one of the following:
• Rates notice that shows the street address and title reference; or
• Valuer General – Notice of Valuation
I f you have existing insurance (for the property that will be securing the
proposed loan), we’ll need a copy of the insurance documents (e.g. policy schedules).

This is a guide only and details are subject to change at any time.
Home buying language

Once you’ve made an appointment, your Home Lending Specialist will let you know
– simplified

exactly what documents are required for your particular application.

51
 Financial Services Guide
Your Home Lending Specialist can provide you with the latest version of the Financial
Services Guide so you can make an informed decision on whether you want to use our
products and services. Alternatively, you can access one anytime at commbank.com.
au/Financial-Services-Guide

Things you should know: Applications for finance are subject to approval. Full terms and conditions will be included in the
Bank’s loan offer. Bank fees and charges apply. The advice in this brochure has been prepared without taking your individual
objectives, financial situation or needs into account. Information in this brochure, including rates and fees, is subject
to change.
^ Comparison rate calculated on a $150,000 secured loan over a 25 year term. WARNING: Comparison rate is true only for
the examples given and may not include all fees and charges. Different terms, fees or other loan amounts might result in
a different comparison rate. Comparison rates for variable Interest Only loans are based on an initial 5 year Interest Only
period. Comparison rates for fixed or guaranteed Interest Only loans are based on an initial Interest Only period equal in
length to the fixed or guaranteed period. During an Interest Only period, your Interest Only payments will not reduce your
loan balance. This may mean you pay more interest over the life of the loan.
* These options are not applicable to loans guaranteed under the First Home Loan Deposit Scheme (FHLDS), New Home
Guarantee (NHG) or Family Home Guarantee (FHG).
# Estimated market price is an estimate of a property’s potential market price based on external property data and
CommBank’s own data. It is a guide only and does not take into account all factors that may affect a property’s value. It
is not a Bank valuation for credit assessment purposes.
The target market for some of these products can be found within the product’s Target Market Determination, available at
commbank.com.au/tmd
FASTRefi® is a registered trademark of First American Title Insurance Company of Australia Pty Limited ABN 64 075
279 908 trading as First Title. First American Title Insurance Company of Australia Pty Limited is not part of the
Commonwealth Bank of Australia.
Before acting on this advice, you should consider whether it is appropriate to your circumstances. Terms and conditions
of Everyday Offset account and NetBank are available by visiting our website at commbank.com.au, calling 13 2221 or at
any branch and should be considered in making any decision about these products.
We do not pay our staff commissions for supplying products to you. We pay them a salary and, in some cases, performance
bonuses. Our staff may also receive payments for business they refer to other persons in the Bank who specialise in
certain products and/or services and may be eligible for prizes including overseas travel and gift vouchers. Our staff may
also receive benefits such as tickets to sporting and cultural events, corporate promotional merchandise or other similar
benefits from product providers whose products they may sell or for business they may refer to product providers. We may
receive commission for the sale of Home Insurance products from Hollard Insurance Partners Limited. The commission
amount ranges between 0% to 15% of the premium paid (excluding government charges).
This document contains general advice. It does not take account of your objectives, financial situation or needs. You should
consider whether the information is appropriate for you, having regard to your objectives, financial situation and needs
before you act on the information. Also, before you make any decision about whether to acquire a financial product you
should read the relevant Product Disclosure Statement. You should also consider talking to a financial planner to assist you
in this process.
Financial advice on life insurance, wealth needs and super will be provided by AIA Financial Wellbeing, which is operated
by AIA Financial Services Pty Limited ABN 68 008 540 252 AFSL 231109 (AIA Financial Services), a subsidiary of AIA
Australia Limited ABN 79 004 837 861 AFSL 230043 (AIA Australia). CommBank has a referral arrangement with AIA
Financial Wellbeing to provide advice to the Bank’s customers on life insurance and simple wealth needs across a range of
financial solutions from different providers. AIA Financial Wellbeing, AIA Financial Services and AIA Australia are not part of
the Commonwealth Bank Group, and the Group does not guarantee and is not responsible for the financial advice provided
by AIA Financial Wellbeing; the performance of products recommended by AIA Financial Wellbeing; or the obligations of
AIA Financial Wellbeing, AIA Financial Services and AIA Australia.
Home Insurance is provided and issued by Hollard Insurance Partners Limited ABN 96 067 524 216, AFSL 235030
(Hollard) and distributed by the Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (CBA). Hollard is
not part of the CBA Group. CBA and its related entities do not sell, issue or guarantee the obligations or performance of
Hollard or the products Hollard offers and this insurance product does not represent a deposit with or liability of either CBA
or any of its related bodies corporate.

52
 Planning to buy
Property hunting
For products issued by Hollard, information about the target market can be found within the product’s Target
Market Determination available at commbank.com.au/insurancehome.
A Product Disclosure Statement (PDS) is available at all Commonwealth Bank branches, by downloading them
from commbank.com.au or by calling 13 2423 and should be considered before making any decisions about
this product. You should also read the Premium, Excess and Discount Guide (PEDG), Key Facts Sheets (KFS) and

Choosing the right loan

Financial Services Guide (FSG) available on commbank.com.au or by calling 13 2423 for a paper copy.
Hollard is a signatory to the General Insurance Code of Practice. For more information on the code, visit
www.codeofpractice.com.au
Life Insurance provided by AIA Australia (Life Insurance) and Income Protection provided by AIA Australia (Income
Protection) are provided and issued by
AIA Australia Limited ABN 79 004 837 861 AFSL 230043 (AIA Australia) and distributed by the Commonwealth
Bank of Australia ABN 48 123 123 124
AFSL 234945. AIA Australia is not part of the Commonwealth Bank Group. CommBank and its related entities
do not sell, issue or guarantee the obligations or performance of AIA Australia or the products it offers and
these insurance products do not represent a deposit with or liability of either CommBank or any of its related
bodies corporate.
You should, before deciding to acquire or continue to hold any of these products, consider the appropriateness to
your circumstances and read the relevant Product Disclosure Statement (PDS) or call AIA Australia on 1800 491
588, 9am to 5pm, Monday to Friday (Sydney time). Neither CommBank nor any of its related corporations are

Buying your home

authorised representatives of AIA or our related companies. For more information on the financial services the Bank
provides, you should read our Financial Services Guide and Privacy Policy. If you purchase a Life Insurance and/or
Income Protection policy, CommBank is paid a commission, which is a percentage of your premium.
AIA Australia has adopted the Financial Services Council Life Insurance Code of Practice, which contains minimum
standards of service that customers can expect from insurers. The code can be found at fsc.org.au
AIA Vitality is provided by AIA Australia. Eligibility for membership to the AIA Vitality program arises under, and
is subject to, the AIA Vitality Terms and Conditions. Access to the AIA Vitality program as a result of holding Life
Insurance or Income Protection requires your annual premium on your Policy or combined annual premium on all
Life Insurance and Income Protection policies to be equal to or greater than $500 per person and does not require
eligible individuals to pay any additional costs, as the cost of the program has been factored into your premium, if Making your loan work for you
applicable. AIA Vitality partners, benefits and rewards are subject to change at any time. For the most up-to-date
information and to view the AIA Vitality Terms and Conditions, see aiavitality.com.au
If you have a complaint, you can access our dispute resolution process by calling 13 2221 (call charges may apply).
Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian credit licence 234945. Registered
office: Commonwealth Bank Place South, Level 1, 11 Harbour Street, Sydney, NSW 2000.
Home buying language
– simplified

53
We’re here
to help.

Book an appointment to meet

with a Home Lending Specialist at
commbank.com.au/appointment

Message us 24/7 in the

CommBank app

Call us on 13 2224

For more information, visit

commbank.com.au/home-
buying

54
 Home buying language
Planning to buy Property hunting Choosing the right loan Buying your home Making your loan work for you
– simplified

55
006-076 220324