Which lenders are cheaper than Commonwealth Bank?

Australia’s biggest bank is Commonwealth Bank. One in four homebuyers choose Commonwealth Bank for their home loan and, in 2019 and 2020, Commonwealth Bank is attracting more new customers according to CBA’s half yearly results, out yesterday.The bank reported a profit of almost $5 billion for the six months ended 31 December 2019.

Commonwealth Bank grew its share of the home loan market in Australia to over 25% in 2019.

One reason for Commbank’s dominant position in the market might be the way it assesses loan applications. Commbank has been accused of failing to implement more rigorous income and expense verification and has their minimum floor rate currently set at 5.40%.

Commonwealth Bank’s CEO Matt Comyn rejected the suggestion the bank was being too easy on loan applicants.

Mr Comyn said fast decisions on applications for home loans in 24 or 48 hours, helped make Commonwealth Bank the biggest home lender in Australia.

Commonwealth Bank home loan interest rates

A selection of Commonwealth Bank’s current best rates for home buyers are listed below.

The best rate for you may not be the lowest. The best home loan is the one that delivers the best value home loan package deal for your personal circumstances.

Use InfoChoice’s home loan calculators to help you.

Commonwealth Bank home loan interest rate for first home buyers:

Commonwealth Bank’s low rate home loan for first home buyers (OO, P&I) is currently 2.99% pa (comparison rate 4.37% pa) fixed for 3 years.

Commonwealth Bank home loan interest rate for owner occupiers:

Commonwealth Bank has a 3.22% pa rate (comparison rate 3.23% pa) for borrowers with a 30% deposit (P&I).

Commonwealth Bank home loan interest rate for investors:

Commonwealth Bank has a 3.44% pa rate (comparison rate 5.01% pa) for investors fixed for two years.

See Commonwealth Bank’s current home loan rates as listed on InfoChoice in February 2020.

Compare Commonwealth Bank rates with the other big four banks.

Home Loans that are cheaper than the Commonwealth Bank

Whether a home loan is cheaper than another depends on how you manage it and pay it back. Some lenders may not be willing to lend you as much as the Commonwealth Bank will, while others will approve much bigger loans.

All home loans have a variety of fees, rates and features that will appeal to different borrowers.

These loans below have low-rates and may result in you repaying less in interest than many other loans might charge. All of these loans are as listed on InfoChoice’s data base, including the Commonwealth Bank’s home loans.

UBank has variable and fixed home loans for owner-occupiers and investors.

Right now UBank’s Discount Offer (variable) for Owner Occupied (P&I, >$200K) is charging 2.84 per cent pa (comparison rate 2.84% pa).

See UBank’s Discount Offer rates and fees information at InfoChoice.

See UBank home loan interest rates and fees information at InfoChoice.

Well Home Loans’ Well Balanced LVR up to 80% home loan has a current rate of 2.72% pa (comparison rate 2.75% pa) with an application fee of $250.

See Well Home Loans’ Well Balanced rates and fees information at InfoChoice.

See Well Home Loans home loan interest rates and fees information at InfoChoice.

Freedomlend’s Owner Occupied variable P&I 80% home loan has a current rate of 2.79% pa (comparison rate 2.79% pa).

See FreedomLend’s Owner Occupied variable 80% rates and fees information at InfoChoice.

See Freedomlend’s home loan interest rates and fees information at InfoChoice.

Bank Australia’s Clean Energy Home Loan LVR < 70% has a current fixed rate for two or three years of 2.44% pa (Comparison rates up to 3.50% pa).

See Bank Australia’s Clean Energy Home Loan LVR < 70% home loan rates and fees information at InfoChoice.

See Bank Australia’s home loan interest rates and fees information at InfoChoice.

Reduce Home Loan’s Rate Buster home loan has a variable rate currently set at 2.77% pa (comparison rate 2.78% pa).

See Reduce Home Loan’s Rate Buster home loan rates and fees information at InfoChoice.

See Reduce Home Loan’s home loan interest rates and fees information at InfoChoice.

Compare all these lenders with 1800 other home loans at InfoChoice.

These rates are compiled by InfoChoice researchers and are correct at time of publishing.

All these rates are taken from InfoChoice and relate only to loans listed on InfoChoice.com.au’s database of 145 lenders in Australia.

Banks may offer discounts off these rates, especially for borrowers with a high credit score or good credit rating. Because of changing rates and variations between products and offers, other loans may have lower advertised or comparison rates than the loan rates quoted here.

While these rates are among the lowest rates and they are all among the best value deals that we can find currently on offer from Commonwealth Bank and other lenders, you may be able to find better rates at InfoChoice.

This article is news and information, not financial advice. The products compared in this article are chosen from a range of offers available to us and are not representative of all the products available in the market and influenced by a range of factors including interest rates, product costs and commercial and sponsorship arrangements

InfoChoice compares financial products from 145 banks, credit unions and other financial institutions in Australia. InfoChoice does not compare every product in the market. Some institutions may have a commercial partnership with InfoChoice. Rates are provided by partners and taken from financial institutions websites. We believe all information to be accurate on the date published. InfoChoice strives to update and keep information as accurate as possible.

The information contained on this web site is general in nature and does not take into account your personal situation. Do not interpret the listing order as an endorsement or recommendation from us.  You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. If you or someone you know is in financial stress, contact the National Debt Helpline on 1800 007 007.

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