Commonwealth Bank of Australia
Lender Overview
Commonwealth Bank (CBA) is Australia's largest home lender by market share, holding approximately 25% of all Australian mortgages. Founded in 1911 and headquartered in Sydney, it offers the widest branch and ATM network in Australia alongside a leading digital banking platform (CommBank app). CBA is a publicly listed company on the ASX (ASX: CBA) and is regulated by APRA.
Loan Products Offered
Standard Variable Rate Home Loan
CBA's flagship owner-occupier variable rate loan. Includes full redraw facility and optional offset account. Available for owner-occupier and investor purposes.
Fixed Rate Home Loan
Fixed rate terms of 1, 2, 3 and 5 years. Limited extra repayments during the fixed term. Break costs apply for early exit.
Wealth Package
Annual fee package ($395/year) bundling a discounted home loan rate, offset account, fee-free credit card, and transaction account fee waivers. Best value for borrowers with loan balances above $250,000.
Investment Home Loan
Investor-specific variable and fixed rate products. Both P&I and interest-only options available. Rates are typically 0.3% to 0.5% above owner-occupier equivalents.
Construction Loan
Progressive drawdown loan for building or major renovation. Interest-only during the construction phase, reverting to P&I on completion.
Pros and Cons
Pros
- +Largest branch and ATM network in Australia, important for customers who value face-to-face service
- +Award-winning CommBank app with real-time transaction notifications and loan management
- +Strong offset account functionality with full 100% offset on eligible products
- +Wide range of products covering every borrower type
- +Accepts a broad range of income types including self-employed borrowers
Cons
- -Rates are typically not market-leading; you pay a premium for the brand and network
- -Annual package fees of $395 reduce the value of the rate discount for smaller loan balances
- -Turnaround times can be slower than non-bank or digital lenders during busy periods
- -Loyalty tax is common, with new customer rates often lower than existing customer rates
Typical Rates
| Loan Type | Indicative Rate |
|---|---|
| Owner-Occupier Variable (P&I) | RBA cash rate + 2.70% to 3.20% (indicative) |
| Owner-Occupier Fixed | Market rate at time of fixing, varies by term |
| Investor Variable (P&I) | RBA cash rate + 3.00% to 3.60% (indicative) |
Rates are indicative only and vary based on LVR, loan purpose, product features, and whether a package is held. Always confirm current rates directly with CBA or via a licensed broker. The RBA cash rate as of April 2026 was 3.85%.
Application Process
- 1
Start online via the CommBank website or app, or visit a branch
- 2
Provide income evidence: pay slips (2 most recent), tax returns (if self-employed), rental statements (for investment loans)
- 3
CBA will order a property valuation, which may be a desktop or full inspection valuation
- 4
Conditional approval typically within 3 to 5 business days; full approval 5 to 10 business days
- 5
Loan documents issued after full approval; sign and return to proceed to settlement
- 6
Settlement coordinated between your conveyancer and CBA's settlement team
Who Commonwealth Bank of Australia Suits Best
- ✓Borrowers who value branch access and face-to-face service
- ✓Customers who already bank with CBA and want a simplified banking relationship
- ✓Self-employed borrowers who may benefit from CBA's flexible income assessment
- ✓Customers who want to manage everything through one bank (transaction, savings, mortgage, credit card)
