CBA Home Loan Review

Expert Rating - (4.5/5)

An overall rating of 4.5 is given to the Commonwealth Bank of Australia (CBA) by a group of our senior mortgage brokers. CBA is very accommodating and transparent in their communication and policies. Their advanced online banking and mobile software, plus extensive branch networks with efficient services are acclaimed by our clients. Refinance rebates and cashbacks are also attractive though not the top performer in the market. We believe CBA is a good major lender for individuals with a strong credit history.

Reservoir Finance Score Breakdown

How does the Commonwealth Bank of Australia (CBA) fair? Let’s break it down. Our Reservoir Finance rating assesses a lender on five key criteria:

CBA has an overall average interest rate in the market. Although variable rates are relatively higher than other lenders, their fixed rates are quite competitive. Their Wealth Package with further discounts and fee waivers also increase their competitiveness in the market. Refinance rebates and cashbacks are also attractive features to borrowers.

Overall CBA has a moderate borrowing capacity in the market. Assessment rate has dropped along with RBA rate drops, but still certainly not the most friendly lender for those who look for maximising borrowing capacities.

CBA has outstanding credit policies. They have some niche credit policies that may fit certain types of borrowers who may find nowhere else can offer better deals. For example, they have a favorable policy for newly started employment, normally only need one payslip plus employment contract to verify income. For another example, CBA is one of a few lenders who offer a maximum of 80% loan to smaller than 40m2 studio apartments.

CBA can be reached through the internet, phone or one of their 1,000 plus physical branches across Australia. Their excellent online user interface and services outperform all the other major and small lenders.

With a moderate response timeframe and wide range of service channels, the overall customer service at CBA is noticeably above average in the market.

Is CBA a good lender? Our final score...

Final Score - 4.5 out of 5

As the largest bank in Australia, the Commonwealth of Australia is all over the country with their branches and ATMs. Their online banking and overall services are frequently voted the best by customers. CBA also has some niche credit policies that fit some borrowers who otherwise have nowhere else to borrow. However, they sometimes may also fall into the “too big to fail” trap, failing to deliver good results to their customers. Their rates and fees are standard, but definitely keep an eye on your interest rates if you have not reviewed your rate for over a year.

What we like

What we don't

Commonwealth Bank of Australia (CBA), founded in 1911, is the largest Australian multinational banking group who has issued more than a quarter of total Australian home loans. As one of the Big Four Banks, CBA offers a variety of products to most of the local owner occupiers, investors and refinancers. Their advanced online servicing makes them stand out in the market.

Reservoir Finance’s senior mortgage brokers surveyed our customers and combined it with our experience in working with them to bring you this comprehensive review of CBA Home Loans.

At CBA, varieties of home loan products are available to owner occupiers and investors. The CBA Wealth Package, available for a wide range of products, offers various discounts and benefits to homebuyers. Basic home loan product, Extra Home Loan, is also available at CBA.

Current owner occupied home loan rates start from 1.99% p.a. while the investment home loan rates start from 2.69% p.a.. Further discounts may apply depending on loan size.

In terms of fees, here is a summary for most relevant fees.

CBA’s facilities are comprehensive with different offers to cater for different borrowers. We have summarised the home loan product features in the table below:

* Early repayment cost may apply for additional repayments over $10,000 p.a.

CBA home loan products suit individuals who have a clean credit history and desire for branch services (especially for migrants who speak English as a second language). It is also an outstanding choice for medical and industrial professionals who are willing to take high LVR loans. Self-employers can also consider CBA for home loans due to their acceptance of taking last financial year figures for servicing (instead of averaging of two years, or taking a maximum of 120% of the last financial year figures as many other lenders do).

For owner occupiers choosing principal & interest repayment, the maximum LVR at CBA is 95% inclusive of LMI. The maximum LVR is 90% inclusive of LMI for investors. Industrial and medical specialists are able to borrow at 90% LVR with NO LMI. Contact Reservoir Finance mortgage broker to check your eligibility of your profession.

We are able to provide a detailed borrowing capacity calculation for you specifically with CBA. But we may need you to help us understand your financial situation better.

Please fill in the following two calculators on our website, print the calculators as pdf, save and send them to [email protected] – we will get back to you within 1 calendar day.

Calculator 1: How Much Can I Borrow? (No worries if the calculator gives you a result lower than your expectation. We can always help.)

Calculator 2: Budget Planner. (It’s always important for us to understand your incomes but also expenses. Be patient as it’s not a short form.)

Overall, CBA delivers relatively good customer service in the market, especially among the big four banks. However, with CBA having such a large customer base with many loans being written daily, a small percentage of clients will inevitably be neglected or badly handled. Though the bank is improving in many ways by providing service through various channels, a recent news of CBA overcharging more than $2.9 million interest upon more than 2200 customers gives them bad publicity.

CBA provides remote services through online chats, phone calls, emails and face-to-face service at any of their 1,000 branches across Australia. Due to their strictest requirement to be accredited with CBA, not all mortgage brokers can help you with a CBA home loan. Contact Reservoir Finance mortgage broker for a free consultation if CBA is your desired lender for your home loan.

With an extremely low interest rate starting at 1.99% and numerous attractive discounts and fee waivers, the most popular CBA home loan product would be the Fixed Home Loan with Wealth Package, 4-year fixed with principal and interest repayment.

Interested in applying for a CBA Home Loan?

Contact Reservoir Finance today and let us help determine if a CBA Home Loan is best for your personal circumstances. One of CBA’s strict requirements is a strong credit history, if you had credit issues in the past, it may affect your credit score and therefore, whether you can get a CBA loan (or get the best rates from them). It’s best to chat with us to see if it is suitable for you or if there are other better loan products on the market for your personal circumstances.

At Reservoir Finance will always seek your best interests. In fact, our mission to work with Australians to fulfill their dreams of home ownership, achieve financial freedom and help them navigate our complex financial system. We are a values based group of finance brokers that services Australians anywhere. Contact us below, or call us (02 8288 9123) , visit us or even book an online meeting with us! Let us be your partners in achieving your financial goals.

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