Commonwealth Bank (CommBank or CBA) is Australia’s largest home loan lender, offering a wide range of home loan products. Below, we break down everything first-home buyers need to know about Commonwealth Bank home loans – from the top benefits to potential downsides, product options, rates, documents needed, borrowing power, and more. We also compare CBA to other banks and cover FAQs, all with up-to-date info. We will share with you how working with a mortgage broker in Brisbane can help you get the best deal from CBA
The Top 5 Things Commonwealth Bank Home Loans Are Good At
- Flexible Loan Features: CBA loans come packed with borrower-friendly features. Most CBA owner-occupier loans allow unlimited extra repayments, redraw access, and the ability to split your loan into fixed and variable portions. You can also link up to two “Everyday Offset” accounts to reduce interest (hundreds of dollars per year savings). In practice, this means you can pay down debt faster or redirect savings into the offset account to save interest without penalties. CBA also offers “top-up” loans (increase your existing loan by $10,000+) and options like short-term interest-only payments if needed.
- Wealth Package Discounts: CBA’s Wealth Package bundles your home loan with transaction accounts or a credit card to unlock lower rates and waived fees. With the Wealth Package, owner-occupier rates start as low as about 5.84% p.a., and the $600 establishment fee and $8 monthly service fee are waived. Even non-wealth packages have some perks. CBA often runs offers, such as discounted conveyancing and cashback programs, via its Yello rewards.
- Strong Support for First Home Buyers: CBA actively participates in government and market programs. As one of only 27 participating lenders in the First Home Guarantee Scheme (FHGS), CBA helps eligible buyers avoid LMI with just 5% down. CBA also provides educational tools, such as first-home buyer guides, calculators, and dedicated teams to guide you through the process.
- Modern Digital Tools: CBA offers a top-rated online/home loan app experience. You can apply for many products online in about 10 minutes, track your application, and manage your loan 24/7 via NetBank or the CommBank app. For tech-savvy borrowers, the Digi Home Loan is entirely online, offering quick conditional approval.
- Dedicated “Green” Options: For eco-conscious buyers, CBA offers specialised products. The Green Home Loan (up to $20,000) has a very low fixed rate (currently 3.99% p.a. with no establishment fee) for solar panels, batteries or other approved energy-saving products. They also have loan deals for electric vehicles and energy-efficient home renovations. These products can make sustainable upgrades more affordable.
Did you know? CBA’s recent policy update lets first-home buyers formally include rental income from a housemate in their loan application. In practice, a single parent (for example) could rent out a room for $150 per week and count that $650 per month to qualify for a larger loan – potentially adding about $50,000 to their borrowing power.
Top 5 Things Commonwealth Bank Home Loans Aren't So Good At
- High fees and package barriers: The Wealth Package (required for the best rates) has a hefty catch: you need $150,000+ in eligible CBA lending or deposit balances and pay $395/year. Borrowers below that threshold pay steep fees and higher rates. Without the package, CBA’s standard variable rate jumps to about 8.30% p.a., which is much higher than what some online lenders or smaller banks offer. Also, unless you have the Wealth Package, CBA’s $600 establishment fee and $8 monthly fee apply – among the highest of the big banks. In short, if you don’t bundle enough products, a CBA loan can be expensive.
- Less competitive without discounts: Even with discounts, CBA is not always the cheapest. Smaller lenders regularly undercut CBA’s rates. Likewise, fixed-rate deals from challengers can beat CBA. If your profile is straightforward and you shop around, you might find a few basis points better elsewhere. CBA also won’t lend as much against property value compared to some lenders.
- Slow approval: Although CBA has streamlined online applications, it’s still a traditional bank. In practice, a CBA loan can take up to 4–7 business days to fully assess, even if an instant pre-approval was given. Fintech lenders (like Unloan) now offer near-instant approvals in minutes, so CBA can feel slow by comparison. If you need urgent approval or a quick refinancing turnaround, this can be a drawback.
- Stringent lending criteria: CBA’s underwriting is conservative. Until recently, CBA did not count boarder income at all (a policy that only just changed), showing their caution. They also require thorough documentation for any extra income. Borrowers with spotty credit, irregular income or low deposit may find CBA less flexible. That said, CBA has relaxed some rules – it now offers LMI waivers for many professions – but overall, its standards are tight.
- Not available in some situations: Several trade-offs exist. For instance, the Simple Home Loan and Digi Home Loan explicitly cannot be used for company or trust borrowers. CBA also restricts some products from being used for bridge loans, land purchases, or renovations. Lastly, until you meet the package criteria, there is no ability to negotiate an even lower rate – banks like ANZ or Westpac allow you to negotiate after two years. In contrast, CBA locks you into published rates or package discounts.
What Are The Different CBA Home Loan Products (Owner-Occupied)?
CBA has several owner-occupier loan products. Key ones include:
This is CBA’s default home loan, available with or without the Wealth Package. It offers all the usual bells and whistles: full-offset capability, unlimited redraw, top-ups and splits, plus optional fixed-term portions. With the Wealth Package, it has competitive rates (as low as ~5.84% p.a. for ≤60% LVR) and waived fees. Without the package, it’s a “premium” variable loan that still has offset and flexible repayments but at higher rates (~8.30% p.a.).
This is a “no-frills” variable-rate loan. It allows two Everyday Offset accounts and unlimited extra repayments. Compared to the Standard loan, it has a lower application fee ($300 vs. $600) but a slightly higher monthly fee ($20). Its interest rates (with discount) are similar to Standard (about 5.84% p.a. ≤60% LVR). Useful if you want offsetting and flexibility, but plan to pay the monthly fee.
An online-only loan with minimal fees. This applies only if you use NetBank or the app to apply. You receive a $300 establishment fee and a $10 monthly fee, with $10 cash back available via Yello. Features include unlimited extra repayments, redraw and one offset account. This product has the lowest advertised rates (currently ~5.59% p.a. for ≤60% LVR). The catch: The minimum loan is $100,000, and it excludes branch support and special packages (no Wealth Package). It is ideal for tech-friendly borrowers with a large loan.
Designed for loyal CBA customers, this loan has no upfront or ongoing fees and a $0 establishment/service fee. You do not get offset accounts or package discounts, but you benefit from a life-of-loan rate discount that varies by LVR. Essentially, it’s a cheaper rate in exchange for no freebies. With the current discount, owner-occupier rates are roughly 5.94% – 6.10% p.a. Interest-only for up to 5 years is allowed. Good for high-balance borrowers who want to save on fees and can miss offsets.
This small dedicated loan (for solar panels, batteries, etc.) has a very low fixed rate (3.99% p.a. as of mid-2025) and no establishment fee. Loan amounts range from $5,000 to $20,000. If you plan energy upgrades, it’s an easy way to finance them with discount rates.
You can lock in at CBA for 1–5 years. These are tiers of the above products (e.g. Standard Fixed, Extra Fixed). For example, a 3-year fixed owner-occ P&I loan is about 5.49% p.a. with a Package (5.64% without). The 5-year fixed is ~6.29% (6.44% without). CBA’s fixed rates are on par with other major banks, and interest-only options exist for up to 5 years.
Commonwealth Bank Home Loan Rates
Commonwealth Bank of Australia (CBA) continues to update its home loan rates in response to market trends. As of May 2025, CBA offers competitive variable and fixed rates, particularly for customers who qualify for the Wealth Package or have a lower loan-to-value ratio (LVR). Below is a breakdown of CBA’s current rates, along with comparisons to other major banks and smaller lenders.
CBA Home Loan Rates – May 2025
Variable Rates (Owner-Occupier, Principal & Interest)
Product/Package | Interest Rate (p.a.) | Conditions |
Wealth Package (≤60% LVR) | ~5.84% | Lower rate with low LVR |
No Package (Base Rate) | 8.30% | Standard variable rate |
Wealth Package (90–95% LVR) | ~7.24% | Higher LVR means higher rate |
Digi Home Loan | 5.59% | Lowest standard variable rate |
Extra Home Loan | 5.94% – 6.10% | Varies depending on LVR |
2. Fixed Rates (Owner-Occupier, Principal & Interest)
Term | With Wealth Package | Without Wealth Package | Notes |
3-Year Fixed | 5.49% | 5.64% | Fixed rate recently cut by 0.25% |
5-Year Fixed | 6.29% | Not specified |
3. Comparison to Other Lenders
Lender/Product | Interest Rate (p.a.) | Notes |
CBA Digi / Westpac Refinance | ~5.94% | Competitive rate for owner-occupiers |
Westpac 3-Year Fixed | ~5.79% | With package |
ANZ Simplicity 3-Year Fixed | ~5.99% | With package |
ANZ/NAB Standard Variable | 6.19% – 6.29% | Higher than CBA and Westpac |
Smaller Banks (e.g., Gateway, Bank Australia) | <5.7% | Often offer better low-variable deals |
What Documents Does Commonwealth Bank Need For A Home Loan?
Applying for a CBA home loan requires standard verification documents:
- Proof of Identity: Bring at least one photo ID (Australian driver’s licence, passport or proof-of-age card). Existing CBA customers may only need to show their CBA card or passbook.
- Income Evidence: If employed, show recent payslips (last 1–3 months) and bank statements for the same period. If your salary isn’t paid into a CBA account, supply 3–6 months of bank statements. Self-employed applicants must submit tax returns (usually 2 years) and ATO Notice of Assessment or accountant’s letter. Also, provide any PAYG summaries or income proofs.
- Other Income/Assets: Document all other income sources – e.g. rental income (a lease, agent statements or relevant tax return), dividends, or Centrelink benefits (Centrelink statement). Show statements for any savings or investments you will use for deposit. Also, provide details of any existing debts (loan or credit card statements), even if from another bank.
- Property Documentation: If buying an established home, you’ll need the signed Contract of Sale and your solicitor/conveyancer’s contact info. If using another property as security or selling another home, bring the rates notice or title reference. For new builds, bring building plans, quotes and tender documents.
The more prepared you are, the faster the approval.
How Much Can I Borrow From CBA?
Your CBA borrowing power depends on your income, expenses, and deposit, but a few key notes:
- Up to 95% LVR (with guarantees): Normally, CBA offers up to 90% LVR (meaning you need a 10% deposit) with Lenders Mortgage Insurance (LMI). However, under the First Home Guarantee scheme, eligible buyers can borrow up to 95% LVR (with just a 5% deposit) without needing LMI.
- Living Expenses and Serviceability: CBA will stress-test your borrowing power using higher “buffer” interest rates to ensure you can afford repayments even if rates rise. Your actual living expenses, liabilities, and lifestyle all factor into what you can borrow. Try CBA’s Borrowing Power Calculator online for a rough estimate.
General Rule of Thumb: Most banks allow you to borrow around 4–6x your gross income, depending on your job, deposit size, and existing debts. For example, if your household earns $100,000, you may be eligible to borrow between $400,000 and $500,000, although this is just a guideline.
CBA Home Loan Borrowing Power Examples
Scenario | Details | Borrowing Outcome |
First-Home Buyer with 5% Deposit & Guarantor | A 28-year-old nurse earning $75,000 applies under the First Home Guarantee scheme with a $25,000 deposit (5%) and no debts. | CBA allows borrowing up to $475,000–$500,000 without LMI, assuming good credit and moderate living expenses. |
Couple with Boarder Income | A couple earning $130,000 combined hosts a boarder paying $150/week. They have a 15% deposit ($105,000 for a $700k home). | Thanks to boarder income, their borrowing power increases by ~$50,000 – now qualifying for homes in the $650k–$700k range. |
Single Parent with Car Loan & Kids | A single mum earning $90,000 has two kids and a $12,000 car loan. She’s applying with a 10% deposit ($60k) for a $600k home. | CBA assesses her servicing more conservatively due to dependents and liabilities. Likely borrowing power: ~$420,000–$460,000, depending on expenses. |
Note: these are estimates only. For tailored results, it’s best to use CBA’s calculator or speak to a broker.
How Long Do CBA Home Loans Take To Approve?
CBA aims for a fast process, but real timing depends on the completeness of your application:
- Conditional/Pre-Approval: If you apply online with all details, CBA may give conditional approval in minutes or hours once the docs are in. They even advertise the possibility of a decision “in as little as 60 minutes” when everything is straightforward.
- Full Assessment: In practice, most applications take around 4–7 business days for formal assessment. This is after you’ve lodged all the paperwork. The complexity of your income, any special assets or large investment portfolios can slow things down. Refinancing or straightforward purchase of an established home tends to be quicker than building loans or unusual cases.
- Loan Documents & Settlement: Once approved, document signing usually adds 1–2 more weeks (longer if there’s a cooling-off period or delay in valuation).
In total, many buyers find that a Commbank home loan takes 4–6 weeks from application to settlement (often faster if no issues).
By comparison, some small lenders or fintechs advertise instant funding, but among the Big 4 banks, CBA’s timeline is about average. If you need speed, make sure all your paperwork is ready. A good mortgage broker like Hunter Galloway can often help chase things up.
What Else Does CBA Offer?
Beyond basic home loan terms, CBA provides a host of extras:
- Government Schemes: CBA supports the First Home Guarantee (5% deposit) and Family/Regional Home Guarantees. See our Home Guarantee Scheme guide for details. CBA’s participation means first-timers can avoid LMI under these schemes.
- LMI Waivers: CBA has expanded its lenders’ mortgage insurance (LMI) waiver for certain professions. From 2025, professions such as paramedics, police, firefighters, and nurses can avoid paying LMI on qualifying loans. This can save tens of thousands if your deposit is 5–10%. CBA originally only waived LMI for doctors, lawyers, and accountants; the expansion helps more “everyday heroes” get into homes.
- Refinancing Perks: If you refinance to CBA, they offer incentives. Through their Home-in partnership, refinancing borrowers get $699 conveyancing. CBA also often waives discharge fees on your old loan when you refinance with them. Additionally, their “Rate Tracker” emails notify you of potential rate cuts that may benefit you.
- Build/Bridging Loans: CBA provides bridging finance to buy one property while selling another and construction loans (for building). These products have their own rates and criteria but extend CBA’s offering into all common purchase scenarios.
- Insurance & Accounts: As part of the banking group, CBA can bundle or cross-sell related products. You can apply for home insurance, loan protection insurance, or bundle your mortgage account with certain debit/credit cards or savings accounts.
- Rewards & Programs: Loyalty programs, such as CommBank Yello, often tie into home loans. Eligible customers earn monthly cashbacks on loan fees or discounted utilities. Over the years, these can amount to a couple of hundred dollars saved annually.
Overall, CBA aims to be a one-stop shop for mortgages, funding, and customer support.
What Are Some Commonwealth Bank Home Loan Customer Reviews
Customer sentiment on CBA home loans is generally mixed but trending positive:
- High Satisfaction Ratings: In 2024, a Roy Morgan survey found 76.1% of CBA home loan customers were satisfied – the highest among the Big 4 banks. Finder’s Home Loan Customer Satisfaction Awards 2024 even gave CBA a top overall score (4.2/5) and praised its customer service. Many borrowers applaud CBA’s smooth online systems and offset features, as mentioned above.
- Positive Feedback: First-home buyers often report appreciation for CBA’s participation in government schemes and for helpful online tools (e.g. “NetBank makes repayments easy,” “offsetting my savings is great”). Those who got the Wealth Package sometimes say, “The discounted rate really made my mortgage affordable.”
- Criticisms: On the other hand, some borrowers complain about the high fees, especially if they are not bundled or are “steered” into expensive products. Others mention slower-than-expected approval or frustrating paperwork requests (especially self-employed applicants). Social media threads note that as a very big bank, CBA can feel impersonal and that everyone’s just a number.
As with any lender, experiences vary. It’s wise to read recent reviews on finance forums or ask a broker for specifics. But overall, CBA customers tend to be satisfied with the process and features of their home loans.
Is Commonwealth Bank An Ethical Australian Bank?
The question of “ethics” goes beyond home loans, but first-home buyers increasingly consider it. Here’s a balanced view:
- Past Controversies: CBA faced major scandals such as misleading insurance sales and financial misconduct, culminating in the 2018 Banking Royal Commission. Since then, it has paid billions in fines and made reforms. That legacy still colours some opinions.
- Fossil Fuel Financing: Critics point out that CBA remains one of the largest financiers of fossil fuel projects among Australian banks. For strictly “green” credentials, some Australians prefer smaller banks like Bank Australia or Teachers Mutual Bank, which explicitly avoid funding coal and oil. CBA itself is less aggressive than NAB and ANZ in terms of new coal plants, but it is still behind community-bank peers in clean energy pledges.
- Green Initiatives: On the positive side, CBA has launched “green” products and invests in renewable energy projects. They’ve committed to net-zero financed emissions by 2050. The introduction of the Green Home Loan shows some focus on sustainable energy. In 2024, they also offered incentives like EV financing discounts and energy-efficiency loans.
- Community Programs: CBA runs programs for Indigenous housing, financial education, and hardship assistance. It often supports first-home buyer grants and financial literacy.
In summary, Commonwealth Bank is a mainstream Big 4 bank with all the pros and cons that entails. It has taken steps toward more ethical lending, but it still underwrites traditional industry. First-home buyers who prioritise “green” credentials may research alternatives (e.g., Bendigo, Bank Australia, UBank) or consider investing through green building upgrades (via CBA’s green loan) if they choose CBA.
How Does Commonwealth Bank Compare To Other Banks?
When you’re buying your first home, choosing the right lender can make a big difference in interest rates, loan features, and overall experience. Commonwealth Bank of Australia (CBA) is often seen as a top-tier option among the Big Four, but smaller lenders can sometimes offer better deals—if you meet their criteria. The table below compares CBA with other major and non-major lenders across key areas that matter to first-home buyers.
Category | CBA | Other Big 4 Banks | Smaller Banks / Non-Majors |
Rate Competitiveness | – Variable ~5.94% | – Westpac: 3-year fix ~5.79%- NAB: Variable ~6.19%- ANZ: Fixed ~5.99% | – Gateway Green Plus: ~5.60%- UBank, ING, loans.com.au offer low rates for qualified borrowers |
Loan Features | – Full offset, redraw, top-ups- Strong digital/app experience | – Similar features; offset accounts often tied to large deposits (e.g., Westpac Premium: $250k deposit) | – ING, UBank offer 100% offset but no physical branches- May limit loan sizes or have stricter terms |
First Home Buyer Support | – Strong FHGS participation- Convenient if you already bank with CBA | – NAB & Westpac also dominate FHGS schemes- ANZ offers similar programs | – Some credit unions (e.g. Bendigo) also offer FHGS- May require starting new banking relationships |
Branch & Digital Access | – Extensive branch network and digital tools | – All majors have nationwide coverage | – Limited or no physical branches- Online and app-based service only |
Customer Service & Trust | – 76.1% satisfaction (highest among Big 4)- Good reputation among brokers | – Westpac: ~75%- ANZ: ~72% | – Bendigo, Bank Australia lead in satisfaction and ethics- Often top-ranked for trust |
Broker View | – Broker-friendly and responsive underwriting | – All majors relatively similar | – Brokers may recommend for better rates, but approval criteria may be stricter |
Bonus: How Much Can I Borrow From A Commonwealth Bank Personal Loan?
While our focus is home loans, here’s a brief note on CBA’s personal loans (for non-home purchases):
CBA Personal Loans Overview (2025)
Loan Type | Loan Amount | Interest Rate (Fixed) | Fees |
Unsecured Personal Loan | $4,000 – $50,000 | ~7.75% – 19.75% p.a. | $250 establishment + $15/month |
Secured Car Loan | $4,000 – $120,000 | ~6.49% – 10.49% p.a. | $250 establishment + $15/month |
So, if you plan any big purchase besides a home, CBA’s personal loans allow you to borrow at competitive rates – just remember personal loan borrowing power is usually a few tens of thousands (not like a mortgage’s hundreds of thousands).
Commonwealth Bank Home Loan Frequently Asked Questions
How do I apply for a Commonwealth Bank home loan?
You can apply online via CommBank’s website or the CommBank app. Simply gather your documents and fill in the application. CBA also allows conditional pre-approval, so you can see a provisional loan offer before signing a property contract. You can also apply in person at a CommBank branch or through a broker like us, who can help prepare your application free of charge.
What are Commonwealth Bank's current home loan interest rates?
CBA’s rates change regularly. As of May 2025, variable owner-occupier rates range from 5.59% p.a. to 8.30%. Fixed 3-year loans are around 5.49% (with package).
What is the Commonwealth Bank Wealth Package?
The Wealth Package is a $395/year banking bundle that gives home loan discounts. You must hold at least $150,000 in CBA lending or deposit balances to qualify. With it, CBA waives the $600 establishment fee and $8 monthly fee and cuts your interest rate. It works best if you maintain large CBA balances; otherwise, skip it and pay base fees.
How much deposit do I need for a CBA home loan?
Normally, you need at least 5–10% of the purchase price, plus LMI, if you have a deposit below 20%. Under a standard loan, most buyers put 10–20% down. However, if you qualify for the government home guarantees, you can buy with a 5% deposit and no LMI. CBA participates in that scheme. Also, CBA occasionally offers LMI waivers to certain professions, effectively reducing the upfront cost. In short, plan for a 10–20% down payment as a safe target, or use the 95% LVR schemes if eligible.
Can I refinance my home loan to Commonwealth Bank?
Absolutely. CBA welcomes refinance customers. The process is similar to a new loan – you apply, and CBA pays out the old loan on settlement. Refinancers often get special deals: for example, Home-In’s $699 conveyancing discount. If your old loan rate is high, refinancing to CBA (especially with a Wealth Package) can save thousands.
What documents are needed for a CBA refinance?
The checklist is similar to a purchase loan. You’ll need to provide ID, proof of income, and your most recent statements showing your current loan balance. Also, provide details of any outstanding debts or credit cards to consolidate them into the new loan if desired. Essentially, gather the same documentation as a purchase – plus the final discharge statement from your existing lender.
How do offset accounts work with CommBank home loans?
With an offset account, your deposits reduce the balance on which interest is charged. CBA allows linking up to 2 “Everyday Offset” accounts per loan for most products. Using offsets can save tens of thousands in interest over the life of the loan.
Can I use a guarantor for a Commonwealth Bank loan?
Yes – CBA allows guarantors (often parents) to secure extra borrowing power. It means someone else’s property (or cash deposit) can cover a portion of your loan. The guarantor’s owner-occupied or investment property deeds are pledged. All the usual rates apply. If you plan to apply with a guarantor, you’ll need additional documents from them, like their mortgage statements.
What fees does CommBank charge on home loans?
Fees depend on the loan type. A Standard variable loan has a $600 establishment fee and an $8 monthly fee (both waived with the Wealth Package). The Simple and Digi loans offer reduced fees: Simple charges $300 upfront and $20 per month, while Digi charges $300 and $10 per month (refundable via Yello). There’s also often a small monthly “offset feature fee” around $10 if you use offset accounts on certain products. CBA also charges Lenders Mortgage Insurance (LMI) if your deposit is under 20% (unless waived by profession or scheme). Always check the Product Disclosure Statement for the latest fee schedule.
Can I fix or split my Commonwealth Bank home loan?
Yes. You can take part of your loan as a fixed-rate term (1–5 years) and keep the rest variable; this is called a “split loan.” CBA allows splits with many products, except the Simple Home Loan. A split can hedge against future rate rises. CBA also allows you to fix 100% of your loan amount if you choose. Be aware that fixed portions cannot use offset accounts and may have break costs if you pay them off early.
Conclusion: Is A CBA Home Loan Right For You?
Commonwealth Bank remains one of Australia’s most trusted and competitive home loan providers—particularly for first-home buyers and owner-occupiers who can qualify for its Wealth Package discounts or government schemes, such as the First Home Guarantee. With flexible product options, strong digital tools, and nationwide branch access, CBA combines convenience with reliability. While smaller lenders may occasionally offer sharper headline rates, CBA’s combination of service, features, and lending support makes it a compelling choice—especially if you’re looking for stability and long-term value.
As always, it pays to compare your options carefully and use tools like CBA’s borrowing power calculator or speak to a broker to understand your full borrowing potential. Whether you’re buying your first home, refinancing, or investing, CBA’s offerings are worth a serious look in 2025.
Next Steps And Getting Your Home Loan Approved
Are you ready to start your home-buying journey? Our team at Hunter Galloway is here to help you buy a home in Australia. Unlike other mortgage brokers who are just one-person operations, we have an entire team of experts dedicated to helping make your home loan journey as simple as possible. If you want to get started, please give us a call on 1300 088 065 or book a free assessment online to see how we can help.
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